TaIncome tax
Income tax is a direct tax that we pay to the government on the income earned during a financial year by the personal and businesses. Income tax is calculated by income tax slabs and rates for the applicable financial year (FY) and assessment year (AY), which is defined by Income Tax Department. Income tax is calculated as a percentage of your annual income and is used by the government to pay for infrastructure development, pay public sector workers, pay for public health, education, agriculture sector and defense services, etc.
Income tax slab
Individual taxpayers will need to pay the income tax based on the slab system into which they fall. Income tax slab rates are different as per categories. For the purpose of tax payment, individual taxpayers are classified three categories such as:
- Individuals including residents and non-residents (aged below 60 years)
- Resident Senior citizens (aged between 60-80 years)
- Resident Super senior citizens (older then 80 years)
Income tax slab for Individuals resident or non-resident FY 2022-2023 (aged below 60 years )
| Income tax slab | Income tax slab rate for FY 2022 – 23, AY 2023 – 24 | Income tax slab rate from FY 2020-21 |
|---|---|---|
| Upto Rs. 2.50 Lakh | No Tax | No tax |
| Above Rs. 2.50 Lakh to Rs. 5 Lakh | 5% | 5% |
| Above Rs. 5 Lakh to Rs. 7.50 Lakh | 10% | 20% |
| Above Rs. 7.50 Lakh to Rs. 10 Lakh | 15% | 20% |
| Above Rs. 10 Lakh to Rs. 12.50 Lakh | 20% | 30% |
| Above Rs. 12.50 Lakh to Rs. 12.50 Lakh | 25% | 30% |
| Above Rs. 15 Lakh | 30% | 30% |
Income tax slab for Resident Senior citizens FY 2022-2023 (aged between 60-80 years )
| Income tax slab | Income tax slab rate for FY 2022 – 23, AY 2023 – 24 | Income tax slab rate from FY 2020-21 |
|---|---|---|
| Upto Rs. 2.50 Lakh | No Tax | No tax |
| Above Rs. 2.50 Lakh to Rs. 5 Lakh | 5% | 5% |
| Above Rs. 5 Lakh to Rs. 7.50 Lakh | 10% | 20% |
| Above Rs. 7.50 Lakh to Rs. 10 Lakh | 15% | 20% |
| Above Rs. 10 Lakh to Rs. 12.50 Lakh | 20% | 30% |
| Above Rs. 12.50 Lakh to Rs. 12.50 Lakh | 25% | 30% |
| Above Rs. 15 Lakh | 30% | 30% |
Income tax slab for Resident Senior citizens FY 2022-2023 (older then 80 years )
| Income tax slab | Income tax slab rate for FY 2022 – 23, AY 2023 – 24 | Income tax slab rate from FY 2020-21 |
|---|---|---|
| Upto Rs. 2.50 Lakh | No Tax | No tax |
| Above Rs. 2.50 Lakh to Rs. 5 Lakh | No Tax | No Tax |
| Above Rs. 5 Lakh to Rs. 7.50 Lakh | 10% | 20% |
| Above Rs. 7.50 Lakh to Rs. 10 Lakh | 15% | 20% |
| Above Rs. 10 Lakh to Rs. 12.50 Lakh | 20% | 30% |
| Above Rs. 12.50 Lakh to Rs. 12.50 Lakh | 25% | 30% |
| Above Rs. 15 Lakh | 30% | 30% |
Tax Slabs from Domestic Companies
| Turnover of the Company | Tax Slab Rate |
| Income Tax for turnover upto Rs 400 Cr | 25% |
| Income Tax for turnover above Rs 400 Cr | 30% |
Surcharge Rates Applicable to Income Tax
| Income Range | Applicable Rate of Surcharge (2022-23) | Applicable Rate of Surcharge (2023-24) |
| Rs.50 lakhs to Rs.1 crore | 10% | 10% |
| Rs.1 crore to Rs.2 crore | 15.00% | 15% |
| Rs.2 crores to Rs.5 crore | 25.00% | 25% |
| Rs.5 crores to Rs.10 crore | 37.00% | 37% |
| More than Rs.10 crore | 37.00% | 37% |
