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Tax slabs for individuals for the assessment years 2022-23 and 2023-24

The Union Budget is announced by the Government of India in the month of February every year. Apart from providing report of incomes and expenditures of the Government, announcing future projects and allocating funds to various sectors, the budget statement also talks about the changes in tax laws. Here, we will see the income tax rates applicable to individuals for the assessment years 2022-23 and 2023-24, under both old and new regime. 

Previous Year and Assessment Year

  • Previous year is the financial year in which we earn income.
  • Assessment year is the financial year in which we file income tax return for the income earned in the previous year.

Income tax rates for individual up to the age of 60 years (old tax regime)

Income Tax rate
Up to Rs.2,50,000 Nil
Rs.2,50,001 to Rs.5,00,000 5%
Rs.5,00,001 to Rs.10,00,000 20%
Above Rs.10,00,000 30%

Income tax rates for individual more than 60 years of age (old tax regime)

Income Tax rate
Up to Rs.3,00,000 Nil
Rs.3,00,001 to Rs.5,00,000 5%
Rs.5,00,001 to Rs.10,00,000 20%
Above Rs.10,00,000 30%

Income tax rates for individual more than 80 years of age (old tax regime)

Income Tax rate
Up to Rs.5,00,000 Nil
Rs.5,00,001 to Rs.10,00,000 20%
Above Rs.10,00,000 30%

Income tax rates for individual (new tax regime)

Income Tax rate
Up to Rs.2,50,000 Nil
Rs.2,50,001 to Rs.5,00,000 5%
Rs.5,00,001 to Rs.7,50,000 10%
Rs.7,50,001 to Rs.10,00,000 15%
Rs.10,00,001 to Rs.12,50,000 20%
Rs.12,50,001 to Rs.15,00,000 25%
Above Rs.15,00,000 30%

Under section 87A, a rebate of Rs.12,500 is available to resident individuals whose total income during the previous year does not exceed Rs.5,00,000. That is, if the taxable income is less than Rs.5,00,000, no tax is payable by the individual.

Surcharge

Surcharge on income tax is applicable as follows –

Income Surcharge
Rs.50 Lakhs to Rs.1 Crore 10%
Rs.1 Crore to Rs.2 Crores 15%
Rs.2 Crores to Rs.5 Crores 25%
Exceeding Rs.5 crores 37%

At any time, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income by more than the amount of income that exceeds the slab for surcharge. For eg, in case where net income exceeds Rs.50 lakh but doesn't exceed Rs.1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs.50 Lakh by more than the amount of income that exceeds Rs.50 Lakhs.

Health and Education Cess

Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.

Total Tax liability

Total Tax Liability = (Income tax as per applicable slab rates) + (Surcharge on Income tax) + (Health and Education cess on Income Tax plus Surcharge)

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