New Income Tax Slabs

Indian Income Tax has its basis on the Income Tax Act of 1961. The act contains all the section which describes rules and laws for various taxes. In India, the Income Tax Department and the Finance Ministry regulate income tax rules and rates. The income tax slabs and rates change every assessment year. And the changes are generally presented in the annual budget session of the parliament. The new income tax rates for F.Y. 2022-23 are already made available by the Income Tax Department. Read on for more details on the new tax regime.

The New Tax Regime for A.Y. 2022-23

The Finance Act brought the new tax regime from A.Y. 2021-22. It has lower and more slabs that are beneficial to the taxpayer. But there are some limitations on the allowed deductions and allowances. The tax rates of AY 2022-23 are on the basis of this new tax regime. The new tax rates of AY 2022-23 are mostly similar to the previous AY 2021-22 rates. Even though the rates are similar, there are a few inclusions in the rules regarding income tax relaxations. These new tax rates are as per the amendments of the Finance Act, 2021. You can understand the difference between the old tax regime vs new tax regime from the tax rates issued this year.

1. All individuals and HUFs

For individuals below 60 years and HUFs :

The income tax slab for HUF and individuals are the same. Both have taxable income of more than ₹2,50,000.

For senior citizens (adults aged between 60 years and 80 years) :

Senior citizens between the ages of 60 and 80 don’t have to pay taxes for incomes up to ₹3,00,000. Your age should be 60 or more for the entire duration of the last assessment year to become eligible as a senior citizen. The new income tax slab for senior citizens is similar to the last year.

For super senior citizens (age more than 80 years) :

For a super senior citizen, the new income tax slab for 2022-23 is also the same as the income tax slab 2021-22.

Surcharge for everyone :

2. Special Tax Rates for Individuals and HUFs

The special tax rates are a part of the new tax regime. You can see that the rates are lower than the old regime. But to get these rates, you must compromise on a few deductions in your income tax.

3. Tax Rates for Partnership Firms

The tax rate for all partnership firms is 30% in A.Y. 2021-22 and A.Y. 2022-23.

4. Tax Rates for Local Authorities

The tax rate for all local authorities is also 30% in A.Y. 2021-22 and A.Y. 2022-23

5. Tax Rates for Domestic Companies

6. Special Tax Rates for Domestic Companies

7. Tax Rates for Foreign Companies

The tax rate for all foreign companies from income from government royalty or government-approved services is 50%. And for every other source of income is 40% in A.Y. 2021-22 and A.Y. 2022-23.

8. Tax Rates for Co-operative Societies

9. Special Tax Rates for Co-operative Societies

The special tax rate for all co-operative societies is 22% in A.Y. 2021-22 and A.Y. 2022-23.