Income Tax Rates for Financial Year 2022-23
Income Tax Rates for Financial Year 2022-23

Income Tax Rates for Financial Year 2022-23/ AY 2023-24

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Income Tax Rates for Financial Year (FY) 2022-23/ Assessment Year (AY) 2023-24: In this section, you will learn about the normal tax rates applicable to different taxpayers.

Normal tax rates for Individuals & HUF

The normal tax rates that apply to a resident individual depend on that person’s age. However, regardless of age, the tax rates will be the same for a non-resident individual. A person can be categorized in the following ways to determine the applicable tax slab:

  • Resident individuals below the age of 60 years.
  • Resident individual of the age of 60 years or above at any time during the year but below
  • the age of 80 years.
  • Resident individual of the age of 80 years or above at any time during the year.
  • Non-resident individual irrespective of the age.

Individuals

(Other than senior and super senior citizen)

Net Income RangeAssessment Year 2023-24Assessment Year 2022-23
Up to Rs. 2,50,000
Rs. 2,50,000 to Rs. 5,00,0005%5%
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%
Tax Rates Applicable to Individual

Senior Citizen

(who is 60 years or more at any time during the previous year)

Net Income RangeAssessment Year 2023-24Assessment Year 2022-23
Up to Rs. 3,00,000
Rs. 3,00,000 to Rs. 5,00,0005%5%
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%
Tax Rates Applicable to Individual Senior Citizens

Super Senior Citizen

(who is 80 years or more at any time during the previous year)

Net Income RangeAssessment Year 2023-24Assessment Year 2022-23
Up to Rs. 5,00,000-%
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%
Tax Rates Applicable to Individual Super Senior Citizens

Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)

Net Income RangeAssessment Year 2023-24Assessment Year 2022-23
Up to Rs. 2,50,000
Rs. 2,50,000 to Rs. 5,00,0005%5%
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%
Tax Rates Applicable to HUF

Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Rate of Surcharge

Assessment Year 2023-24

Range of IncomeRates
Rs. 50 Lakhs to Rs. 1 Crore10%
Rs. 1 Crore to Rs. 2 Crores15%
Rs. 2 crores to Rs.5 Crores25%
Rs. 5 crores to Rs.10 Crores37%
Exceeding Rs. 10 Crores37%
Rate of Surcharge

Income Tax Rates for Financial Year 2022-23/ AY 2023-24

Note:

1) The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%

2) From Assessment Year 2023-24 onwards:

The maximum rate of surcharge on tax payable on dividend income or capital gain referred to in Section 112, shall be 15%

The surcharge rate for AOP with all members as a company, shall be capped at 15%

However, marginal relief is available from surcharge in following manner

a) in case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

b) in case where net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore

c) in case where net income exceeds Rs. 2 crore but doesn’t exceed Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore.

d) in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more thanthe amount of income that exceeds Rs. 5 crore

Health and Education Cess: Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge

AMT: In the case of a non-corporate taxpayer to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+HEC) of “adjusted total income” computed as per section 115JC.

Notes:

W.e.f. Assessment Year 2019-20, In case of a unit located in an IFSC which derives its income solely in convertible foreign exchange, the rate of AMT shall be at the rate of 9% instead of existing rate of 18.50%.

W.e.f. Assessment Year 2023-24, the rate of AMT shall be 15% instead of existing rate of 18.5% in case of a co-operative society.

Note: A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.

Non-resident individual/HUF

Net income rangeIncome-tax ratesHealth and
Education Ces
Up to Rs. 2,50,000NilNil
Rs. 2,50,000 – Rs. 5,00,0005% of (total income minus Rs. 2,50,000) [*]4% of income-tax
Rs. 5,00,000 – Rs. 10,00,000Rs. 12,500 + 20% of (total income minus Rs. 5,00,000)4% of income-tax
Above Rs. 10,00,000Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000)4% of income-tax
Tax Rates Applicable to NRI Individual/HUF

Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:

Range of IncomeRates
Rs. 50 Lakhs to Rs. 1 Crore10%
Rs. 1 Crore to Rs. 2 Crores15%
Rs. 2 crores to Rs.5 Crores25%
Rs. 5 crores to Rs.10 Crores37%
Exceeding Rs. 10 Crores37%
Rate of Surcharge

Income Tax Rates for Financial Year 2022-23/ AY 2023-24

However, marginal relief is available from surcharge in following manner:

a) n case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

b) in case where net income exceeds Rs. 1 crore but doesn’t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore

c) in case where net income exceeds Rs. 2 crore but doesn’t exceed Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore.

d) in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.

Health and Education Cess: Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.

AMT : In the case of a non-corporate taxpayer to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+HEC) of “adjusted total income” computed as per section 115JC.

Notes:

  • W.e.f. Assessment Year 2019-20, In case of a unit located in an IFSC which derives its income solely in convertible foreign exchange, the rate of AMT shall be at the rate of 9% instead of existing rate of 18.50%.
  • W.e.f. Assessment Year 2023-24, the rate of AMT shall be 15% instead of existing rate of 18.5% in case of a co-operative society

Special tax Rate for Individual and HUFs

The Finance Act, 2020, has provided an option to Individuals and HUF for payment oftaxes at the following reduced rates from Assessment Year 2021-22 and onwards:

Total IncomeRate
Up to Rs. 2,50,000
From 2,50,001 to 5,00,0005%
From 5,00,001 to 7,50,00010%
From 7,50,001 to 10,00,00015%
From 10,00,001 to 12,50,00020%
From 12,50,001 to 15,00,00025%
Above 15,00,00030%
Special Tax Rates Applicable to Individual/HUF

Normal tax rates applicable to a firm

A firm is taxed at a flat rate of 30%. Apart from tax @ 30%, Health and Education Cess is levied @ 4% of income-tax.

Surcharge : Surcharge is levied @ 12% on the amount of income-tax where net income exceeds Rs. 1 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income-tax plus surcharge.

However, marginal relief is available from surcharge in such a manner that in the case of a person having a net income of exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

Income Tax Rates for Financial Year 2022-23/ AY 2023-24

Normal Tax rates applicable to a domestic company

Income-tax rates applicable in case of domestic companies for assessment year 2022-23and 2023-24 are as follows:

Domestic CompanyAssessment Year 2023-24Assessment Year 2022-23
Where its total turnover or gross receipt during the previous year
2019-20 does not exceed Rs. 400 crore
NA25%
Where its total turnover or gross
receipt during the previous year
2020-21 does not
exceed Rs. 400 crore
25%NA
Any other domestic company30%30%
Tax Rates applicable to Domestic Company

Surcharge: In addition to tax at above rate, surcharge is levied @ 7% on the amount of incometax if net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 12% on the amount of income-tax if net income exceeds Rs. 10 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income-tax plus surcharge.

Special Tax rates applicable to a domestic company

The special Income-tax rates applicable in case of domestic companies for assessmentyear 2022-23 and 2023-24 are as follows:

Domestic CompanyAssessment Year 2023-24Assessment Year 2022-23
Where it opted for Section
115BA
25%25%
Where it opted for Section
115BA
22%22%
Any other domestic company30%30%
Special Tax Rates applicable to Domestic Company

Surcharge: The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.


Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Income Tax Rates for Financial Year 2022-23/ AY 2023-24

Normal tax rates applicable to a foreign company

A foreign company is taxed at a flat rate of 40%. Apart from tax @ 40%, Health and Education Cess is levied @ 4% of income-tax.

Surcharge: In addition to tax at above rate, surcharge is levied @ 2% on the amount of incometax if net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 5% on the amount of income-tax if net income exceeds Rs. 10 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income-tax plus surcharge.

Normal tax rates applicable to a Co-operative societies

Net income range Rate of income-tax
Up to Rs. 10,000 10%
Rs. 10,000 – Rs. 20,00020%
Above Rs. 20,00030%
Tax Rates Applicable to a Co-operative Societies

Apart from tax at above rate, Health and Education Cess is levied @ 4% of income-tax.

Surcharge: Surcharge is levied @ 12% on the amount of income-tax where net income exceeds Rs. 1 crore . In a case where surcharge is levied, HEC of 4% will be levied on the amount of income-tax plus surcharge.

Note: From Assessment Year 2023-24 onwards, the rate of surcharge in the case of co-operative societies having income between 1 crore to 10 crores is reduced from 12% to 7%.

Special tax rates applicable to a Co-operative societies

The Finance Act, 2020 has inserted a new section 115BAD in Income-tax Act to provide an option to the co-operative societies to get taxed at the rate of 22% plus 10% surcharge and 4% cess. The resident co-operative societies have an option to opt for taxation under newly section 115BAD of the Act w.e.f. Assessment Year 2022-23. The option once exercised u

Normal tax rates applicable to local authorities

A local authority is taxed at a flat rate of 30%. Apart from tax @ 30%, Health and Education Cess is levied @ 4% of income-tax

.Surcharge : Surcharge is levied @ 12% on the amount of income-tax where net income exceeds Rs. 1 crore. In a case where surcharge is levied, HEC of 4% will be levied on the amount of income-tax plus surcharge.

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