Income Tax Slab for FY 2022-23, FY 2021-22 In India - SBI Life
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Income Tax Slab for FY 2022-23, FY 2021-22 In India - SBI Life

Insurance Basics & Financial Advice If there are any changes in the income tax slab, the Finance Minister of India announces it during the presentation of the Union Budget. The income tax slabs in India determine the rates at which different taxpayers are supposed to pay income tax to the Government.

Income Tax Slab for FY 2022-23, FY 2021-22 In India - SBI Life

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Income Tax Slab for FY 2022-23, FY 2021-22 In India - SBI Life

Income Tax Slabs & Rates for FY 2022-23 and FY 2021-22

If there are any changes in the income tax slab, the Finance Minister of India announces it during the presentation of the Union Budget. The income tax slabs in India determine the rates at which different taxpayers are supposed to pay income tax to the Government.

During the Union Budget 2020 presentation, Finance Minister Mrs Nirmala Sitharaman announced the new tax regime and existing tax regimes. The new regime differs from the old regime in multiple ways and is launched to simplify the tax filing process for taxpayers.

Since India has two different income tax regimes, the tax slabs for each are different.

What Is the Income Tax Slab?

As per the Income Tax Act of 1961, all earning individuals in India are required to pay income tax to the Government. The rate at which different individuals are required to pay the income tax is referred to as the income tax slab. Different income tax rates apply to taxpayers belonging to different income groups. As per the current tax slabs in India, the tax rate depends on the taxpayer’s income.

Income Tax Slab Rates for FY 2023-24 (AY 2024-25)

As per the Union Budget 2023, no changes have been made to the existing income tax slabs for individual taxpayers. Recent income tax slab states that individuals earning less than Rs. 2.5 lakhs per year are not required to pay any tax to the Government. The minimum income tax rate is 5% for those earning between Rs. 2.50 lakhs to Rs. 5 lakhs.

Below are the income tax slab rates for FY 2023-24 (AY 2024-25) as per the old regime:

Income Tax Slab Applicable Tax Rate
Up to Rs. 2.5 lakhs Nil
Rs. 2.5 lakhs to Rs. 5 lakhs 5% of the total income exceeding Rs. 2.5 lakhs + 4% cess
Rs. 5 lakhs to Rs. 10 lakhs Rs. 12,500 + 20% of the total income exceeding Rs. 5 lakhs + 4% cess
Above Rs. 10 lakhs Rs. 1,12,500 + 30% of the total income exceeding Rs. 10 lakhs + 4% cess

Please note that the above income tax slab is applicable for individuals aged below 60 years. The following table presents the senior citizen tax slab, i.e., the tax slab for those aged between 60 to 80 years.

Income Tax Slab Applicable Tax Rate
Up to Rs. 3 lakhs Nil
Rs. 3 lakhs to Rs. 5 lakhs 5% of the total income exceeding Rs. 3 lakhs + 4% cess
Rs. 5 lakhs to Rs. 10 lakhs Rs. 10,000 + 20% of the total income exceeding Rs. 5 lakhs + 4% cess
Above Rs. 10 lakhs Rs. 1,10,000 + 30% of the total income exceeding Rs. 10 lakhs + 4% cess

The income tax slab for super senior citizens, i.e., those aged 80 or above is:

Income Tax Slab Applicable Tax Rate
Up to Rs. 5 lakhs Nil
Rs. 5 lakhs to Rs. 10 lakhs 20% of the total income exceeding Rs. 5 lakhs + 4% cess
Above Rs. 10 lakhs Rs. 1,00,000 + 30% of the total income exceeding Rs. 10 lakhs + 4% cess

Income Tax Slab Rates for FY 2023-24 (AY 2024-25) – Applicable for New Regime

During the Union Budget 2020, it was announced that the new regime tax slab would be the same for all individuals, including senior and super-senior citizens. Moreover, paying taxes per the new tax regime is currently optional for taxpayers. The following table presents the applicable tax rate per the new regime:

Income Tax Slab Applicable Tax Rate
Up to Rs. 3 lakhs Nil
Rs. 3 lakhs to Rs. 6 lakhs 5% of the total income exceeding Rs. 3 lakhs
Rs. 6 lakhs – Rs. 9 lakhs Rs. 15,000 + 10% of the total income exceeding Rs. 6 lakhs
Rs. 9 lakhs to Rs. 12 lakhs Rs. 45,000 + 15% of the total income exceeding Rs. 9 lakhs
Rs. 12 lakhs to Rs. 15 lakhs Rs. 90,000 + 20% of the total income exceeding Rs. 12 lakhs
Above Rs. 15 lakhs Rs. 1,50,000 + 30% of the total income exceeding Rs. 15 lakhs

Income Tax Calculator

If you want to evaluate how much tax you are liable to pay to the Government for a given financial year, you can take the help of an online income tax calculator. You will need to enter your total taxable income after tax deductions and specify whether you’ve opted for the old or the new tax regime. The income tax calculator will calculate your estimated tax within a few seconds.

Income Tax Slab Rates for FY 2023-24 (AY 2024-25) – New Tax Regime & Old Tax Regime

Since the Government of India has currently made it default for taxpayers to opt for the new tax regime, you can choose between the old tax regime and new tax regimes while filing your Income Tax Returns (ITR).

Here are a few pointers that can help you make an informed decision:
  • No tax deductions will be available if you opt for the new tax regime. It means that the new tax regime benefits those who make fewer investments.
  • The new regime has six income tax slabs with lower rates than the four slabs in the old regime. Individuals falling into mid-income group slabs can benefit from the new regime.
  • If you invest in tax-saving instruments like NPS, PPF, and health insurance, selecting the old tax regime may be a better option.
  • Do a comparative evaluation of the tax you must pay under both regimes to arrive at a decision

Income Tax FAQs

What is taxable income in India?

Taxable income is the amount on which the Government taxes an individual. The taxable income is calculated after subtracting tax deductions from the actual income.

What are the types of taxable income in India?

Following are the different types of taxable income:

  • Income from salary
  • Income from house property
  • Capital gains
  • Income from business or profession
  • Income from other sources

How do I calculate taxable income?

The taxable income is calculated by adding all types of income heads and subtracting the applicable tax deductions.

What is the period considered for income tax?

Income tax is payable in India annually. It is calculated for every financial year, i.e., between 1st April to 31st March.

Are there separate slab rates for males and females?

No. The income tax slab rates in India are the same for males and females.

Are there separate slab rates for different age groups?

Under the old tax regime, slab rates differ for taxpayers below 60, senior citizens, and super senior citizens. They are the same for every age group in the new tax regime.

Is the due date for filing income tax returns the same for every taxpayer?

No. For individuals and HUFs who are not required to get audited, the due date is 31st July; for others, it is 30th September.

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