Know your Income Tax Slab for Year 2022-23
0
0
Income tax in India is payable on slab basis and is applicable in case of Individual, Hindu Undivided Family (HUF), Association of Person (AOP), Body of Individual (BOI) and Artificial Juridical Person (AJP).
It means if Income is earned by any person as stated above, then Income tax shall be payable on slab basis as mentioned below:
| Total Income | Tax rate |
| upto Rs 2,50,000 | Nil |
| Rs 2,50,001 to Rs 5,00,000 | 5% |
| Rs 500,001 to Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
The above slab rate is applicable to Individuals both resident and Non-resident, however, there is some relief being provided to resident individual whose age is 60 years or more (refer below slab for more details).
Resident Individual whose age is 60 years or more anytime during the Previous Year or 1st day of relevant Assessment Year
| Total Income | Tax rate |
| upto Rs 3,00,000 | Nil |
| Rs 3,00,001 to Rs 5,00,000 | 5% |
| Rs 500,001 to Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
Resident Individual whose age is 80 years or more anytime during the Previous Year or 1st day of relevant Assessment Year
| Total Income | Tax rate |
| upto Rs 5,00,000 | Nil |
| Rs 500,001 to Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
In addition to above tax rate, person also requires to pay surcharge at specified rate and also Health and Education Cess (HEC) at rate 4% in all the cases. It is important to note that HEC is payable on aggregate Tax Payable at per slab rate and surcharge if any.
Rate of Surcharge in case of Individual, HUF, AOI, BOI or AJP
| Total Income | Rate of Surcharge |
| Upto Rs 50 Lacs | Nil |
| Above Rs 50 Lacs upto Rs 1 crore | 10% |
| Above Rs 1 crore upto Rs 2 crores | 15% |
| Above Rs 2 crore upto Rs 5 crores | 25% |
| Above Rs 5 crores | 37% |
It is important to note that above rate of surcharge is flat rate, it means if total income of any Individual exceeds Rs 50 lacs or more, then Surcharge rate would be applicable in addition to Income tax. For example, If total income of any Individual is Rs 60 Lacs during the financial year, then Surcharge at the rate of 10% would be payable. Similarly, if total income of an Individual is Rs 1.5 crores during the financial year, then Surcharge at the rate 15% would be payable.
It also important to note that HEC at the rate of 4% would be payable.
Now lets understand one example to get more clarity.
Mr. Rahul, 26 years old, recently get promoted in his organization and earned a salary Income of Rs 54,00,000 during the financial year ending on 31st March 2023. He also get a Rent Income of Rs 50,000 per month from his spare residential Flat in Mumbai. He also invested Rs 1,00,000 in on ULIP plan from LIC and also opt for one Health Insurance, where he paid a premium of Rs 15,000 during the year.
Now he is not sure how much Income Tax, he would require to pay, therefore, he has contacted you to calculate his total tax payable during the year.
| Particulars | Amount |
| Income From Salary | |
| Salary Income | 5,400,000.00 |
| Income From House Property | |
| Rental Income (Rs 50,000 per month) | 600,000.00 |
| Less: Standard Deduction @30% | (180,000.00) |
| Gross Total Income | 5,820,000.00 |
| Deduction under Chapter VIA | |
| Investment in ULIP (80C) | (100,000.00) |
| Medical Insurance Premium (80D) | (15,000.00) |
| Total Income | 5,705,000.00 |
| Tax on Total Income | Rate of Tax | Amount |
| Upto Rs 250,000 | Nil | – |
| Rs 2,50,001 to Rs 5,00,000 | 5% | 12,500.00 |
| Rs 5,00,001 to Rs 10,00,000 | 20% | 100,000.00 |
| 10,00,001 to Rs 57,05,000 | 30% | 1,411,500.00 |
| Tax | 1,524,000.00 | |
| Surcharge | 10% | 152,400.00 |
| Net Tax including Surcharge | 1,676,400.00 | |
| HEC | 4% | 67,056.00 |
| Total Tax | 1,743,456.00 |
I hope you might have gained some insights about the Income Tax rates and surcharge rate applicable in your case as well.
Stay tuned with us for more such knowledge gain articles.
Taxation Insight
