Income Tax Rates Slab for FY 2021-22 (AY 2022-23) in India

As the ITR filing due date approaches, every taxpayer seems curious to know about the tax burden he will face on his taxable income. This article might help those persons who are looking for the Income Tax slabs for the F.Y. 2021-22 or A.Y. 2022-23

What are Income Tax Slab Rates in India?

Income Tax Slab rates are applicable in the case of individual & HUF assessees whereas, in the case of other assessees like Company/ LLP/ Firm, income tax is chargeable at the prescribed flat rate.

The concept of “Income Tax Slabs” is based on the notion to tax those who are having higher incomes. Under this system, different slabs are prescribed for different levels of income. These slabs are prescribed every year through the Finance Bill (Budget) by the finance minister of the country. Presently, we have 4 slabs applicable as below:

• Nil Tax rate
• 5%
• 20%
• 30%

Further, Surcharge & cess is levied additionally on the income tax calculated on the total income of the assessee. So, Let’s start the discussion over the slab rates.

Income Tax Rates for AY 2022-23 for Individuals

• With effect from A.Y.2021-22, the individuals & HUFs are given two options for discharging their tax obligations while e-filing of income tax returns. A new section 115BAC has been introduced which allows lower rates of tax but the taxpayer loses the benefit of various exemptions & deductions under the Income Tax if he opts for lower tax rates under this section.
• It is optional for the assessee to choose either the existing tax slabs or new tax regime under section 115BAC. The option is to be exercised while filing income tax return online.

INCOME TAX RATES UNDER OLD TAX REGIME

Income Tax Rates for Individuals (other than senior/ super senior citizens) AY 2022-23

Note: These rates are applicable to both Resident/ Non-Resident Individuals.

Income Tax Rates for Senior Citizen Individuals for AY 2022-23

Who is a Senior Citizen?

Individual who is a resident in India who is of the age of 60 years or more but less than 80 years at any time during the financial year is called as “Senior Citizen”.

Income Tax Rates for Super Senior Citizen Individuals for AY 2022-23

Who is a Super Senior Citizen?

Individual who is a resident in India who is of the age of 80 years or more at any time during the previous year.

Note: The income tax calculated at the above rates in the case of individuals shall be subject to surcharge & cess at the following rates:

Surcharge on Income Tax in case of Individuals:

• Where the total income exceeds Rs. 50 Lakhs: 10% of Income Tax
• Where the total income exceeds Rs. 1 crore: 15% of Income Tax
• Where the total income exceeds Rs. 2 crores: 25% of Income Tax
• Where the total income exceeds Rs. 5 crores: 37% of Income Tax

 Health and Education Cess:

4% of Income Tax and Surcharge

Rebate under section 87A

A resident Individual is entitled to a tax rebate under section 87A if his total income does not exceed Rs. 5 lakhs. The amount of rebate allowable is 100% of the income tax or Rs. 12,500, whichever is less.

Income Tax Rates for HUF/AOP/BOI for AY 2022-23

Note: Surcharge & Cess are also applicable to the total income. Rates for surcharge & cess are similar as in the case of the individuals.

INCOME TAX RATES UNDER NEW TAX REGIME

Income Tax Rates for Individuals & HUF for AY 2022-23 under new tax regime

Note: The rates of surcharge & cess are the same as prescribed for individuals/ HUF under the old tax regime.

Read More about New Tax Regime under section 115BAC

Income Tax Rates for Partnership Firms & LLP AY 2022-23

• Partnership Firms & LLPs are taxable at a flat rate of 30% on total income.
• In addition, the surcharge is also payable @ 12% of income tax in the case total income exceeds Rs. 1 crore
• Health and Education Cess: 4% of Income Tax plus surcharge

Income Tax Rates for Companies AY 2022-23

Income Tax Rates for Domestic Companies

Surcharge & Cess in case of Domestic Companies

Health & Education Cess: 4% of income tax plus surcharge

Income Tax Rates for Foreign Companies

Foreign Companies are liable for tax at the rate of 40% of the total taxable income. The Rates of the surcharge is as follows:

• Total Income up to Rs. 1 crore: Nil
• Total Income above Rs. 1 crore but up to Rs. 10 crores: 2%
• Total Income above Rs. 10 crores: 5%

Health & Education Cess: 4% of Income Tax plus surcharge

 Income Tax Rates for Co-operative Societies AY 2022-23

Income Tax rates for Co-operative Society under Old Tax Regime

Note:

• Surcharge on the above income is applicable @ 12% of the income tax where total income exceeds Rs. 1 crore. Further, Health & Education Cess is liable @ 4% of income tax plus surcharge.

Income Tax rates for Co-operative Society under New Tax Regime [Section 115BAD]

Income Tax Rate= 22% of the total income plus surcharge @ 10% irrespective of the total income plus 4% Health & education Cess

Income Tax Rates for Local Authority AY 2022-23

• The local authority is liable to pay tax @ 30% of the total income
• Surcharge: 12% where the total income exceeds Rs. 1 crore
• Health & Education Cess: 4% of the income tax plus surcharge

Disclaimer: The information contained in this article is meant only for educational purposes & has no legal value. We have made appropriate efforts to ensure the accuracy of the content however the readers are advised to act diligently before applying the information contained in this article. Taxwink shall not be responsible for any loss or damage to any person for any incorrect information.