Every year, after the budget it is necessary to check whether there is any change in the Income Tax Rates in India. Well, this year as well the Finance Ministry has prioritized Health and Infrastructure Sector, Finance Minister has kept the income-tax rates unchanged with minute changes in surcharge rates.So, if you are looking for the Income Tax slabs and rates for the financial year (FY) 2022-23 or Assessment year (AY) 2023-24 in India? This article might help you discover the Income Tax slab for AY 2023-24 and information on new tax regime.
Looking for the Income Tax slabs and rates for the financial year 2022-23 or Assessment year 2023-24? This article might help you discover the same.
The Indian Income Tax System follows Income Tax slabs for levying the tax on the income of an individual or non-individual. Various slabs are accounted for.
In India, the income tax is charged on the income earned. This tax applies to the range of income, which is called Income Tax Slabs. The slabs of income tax keep changing from year to year. The Finance Minister announces the slab rates of Income Tax in the Union Budget each year.
The income tax slab rate can be mainly bifurcated as under:
By Gender
Male; and
Female.
By Age
Resident; and
Non-resident in India.
For Hindu Undivided Family (HUF)/ Association Of Person (AOP)/ Body Of Individual (BOI)/ Artificial Judicial Person (AJP)
On Non-individuals
Partnership Firms or LLPs;
Domestic Company;
Foreign Company;
Co-operative Societies; and
Local Authorities.
| Individual or HUF Opting for Normal Tax Regime | |
|
Income tax rates/slabs for for Individuals (men and women below the age of 60 years), HUF, NRI, Association of person, Body of Individuals and Artificial Judicial Person |
|
|
Net Income Slab |
Income Tax Rate for FY 2022-23 |
|
Up to Rs. 2,50,000 |
– |
|
Rs. 2,50,001 – Rs. 5,00,000 |
5% |
|
Rs. 5,00,001 – Rs. 10,00,000 |
20% |
|
Above Rs. 10,00,000 |
30% |
|
Income tax rates/slabs for Senior citizens(above 60 years but below 80 years) |
|
|
Up to Rs. 3,00,000 |
– |
|
Rs. 3,00,001 – Rs. 5,00,000 |
5% |
|
Rs. 5,00,001 – Rs. 10,00,000 |
20% |
|
Above Rs. 10,00,000 |
30% |
|
Income tax rates/slabs for Senior citizens(above 60 years but below 80 years) |
|
|
Up to Rs. 5,00,000 |
– |
|
Rs. 5,00,001 – Rs. 10,00,000 |
20% |
|
Above Rs. 10,00,000 |
30% |
|
Individual or HUF Opting for Alternate Tax Regime under Section 115BAC |
|
|
Up to Rs. 2,50,000 |
– |
|
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. 10,00,000 to Rs. 12,50,000 |
20% |
|
Rs. 12,50,001 to Rs. 15,00,000 |
25% |
|
Above Rs. 15,00,000 |
30% |
Important Note: If you opt-in for the new regime with slashed Income Tax rates, you need to forego certain tax exemptions.
|
Income tax rates/slabs for Co-operative Society |
|
|
Opting for section 115BAD |
22% |
|
Income tax rates/slabs for other Co-operative Society |
|
|
Upto Rs. 10,000 |
10% |
|
Rs. 10,001 to Rs. 20,000 |
20% |
|
Rs. 20,000 & above |
30% |
|
Income tax rates/slabs for Other Entities |
|
|
Partnership Firm & LLP |
30% |
|
Local Authority |
30% |
|
Income tax rates/slabs for Domestic Companies |
|
|
Domestic Company opting for Section 115BAB 1. Income from manufacture or production of article or thing 2. Income from non-manufacturing activities (if no specific rate is prescribed) 3. Short term capital gains (from transfer of depreciable assets) 4. Short term capital gains (from transfer of non-depreciable assets) 5. Excess profit added by the Assessing officer under section 115BAB(6) owning to close connection between company and other person |
15% 22% 15% 22% 30% |
|
Company opted for Section 115BA |
25% |
|
Company opted for Section 115BAA |
22% |
|
Total turnover or gross receipt during the previous year 2020-21 does not exceed Rs. 400 crore |
25% |
|
Any other domestic company |
30% |
|
Income tax rates/slabs for Foreign Company |
|
|
On total income as consists of (a) royalties received from government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after 31-3-1961 but before 1-4-1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after 29-2-1964 but before 1-4-1976, and where such agreement has, in either case, been approved by the Central Government |
50% |
|
On the balance, if any, of the total income |
40% |
Suggested Read: TDS Rate chart for the FY 2022-23 (AY 2023-24)
Surcharge on Income tax
For Partnership Firms, Local Authorities and Co-operative Societies, the rate of surcharge shall be 12%.
If taxable income of a domestic company is more than Rs 1 crore but less than Rs 10 crore surcharge would be 7% and If taxable income is more than Rs 10 crore surcharge would be 12% and
If income of a foreign company is between 1 crore and 10 crores the surcharge shall be 2% and the surcharge will be 5% if income is greater than 10 crores.
The amount of income tax shall be increased by Health and Education Cess on Income Tax at the rate of 4% percent of the income tax payable by both resident and non-resident assessees.
Hope this article was helpful.
LUT Renewal FY 2025-26: GST Exporter's Checklist Introduction If you're an exporter in India, you need to submit a Letter…
Cross-Border Compliance: Global Business Regulations Introduction Taking your business international can open exciting opportunities. But with that growth comes the…
Penalties from Non-Compliance in OPC Annual Filing Introduction An One Person Company (OPC) is a type of business in India…
Comply with FDI Norms During Registration Introduction If you're planning to register a business in India with foreign investment, it's…
USA-Registered LLC Penalties Despite No Activity Introduction Just because your US LLC hasn’t started doing business doesn’t mean you can…
Legal Steps for Indian Innovators Introduction Starting something new and innovative in India is exciting, but it also means you…
Leave a Comment