Normal Income Tax Slabs/ Rates for Resident Individuals: AY 2022-23

The normal income tax rates or slabs, the Higher Education Cess (HEC), the surcharge, the basic exemption limit, etc. as applicable for AY 2020–21 have remained the same for AY 2022–23, as per the Finance Act of 2022, as follows:

A. Resident Individual of Age 80 Years or more (Very/ Super Senior Citizens)*

These income tax rates are applicable to very or super senior citizen resident individuals of age 80 or above.

B. Resident Individual of Age 60 Years or more but less than 80 years (Senior Citizens)*

These income tax rates are applicable to senior citizen resident individuals whose ages are above 60 but below 80.

C. Resident Individuals of Age below 60 Years:

These income tax rates are applicable to resident individuals of age below 60 years. Besides, these rates are applicable for non-resident individuals (NRIs) of all age groups, HUFs, AOPs, BOIs and AJPs.

Note:

1. The income tax rates for resident individuals in each slab, as mentioned above, are inclusive of income tax liability up to the previous slab(s). To arrive at total income tax liability, surcharge and health and education cess are to be applied, as under:

i) A surcharge of 10%, 15%, 25%, or 37% is applicable in cases where total income exceeds Rs. 50 lacs, Rs. 1 crore, Rs. 2 crore, or Rs. 5 crore, respectively, subject to provisions relating to marginal relief, if applicable, and

ii) Health and Education Cess is 4% in all cases.

2. Resident individuals with taxable income up to Rs. 5,00,000 can claim a tax rebate of up to Rs. 12,500 u/s 87A of the Income Tax Act, 1961, in respect of AY 2022–23.

3. In the case of non-corporate taxpayers under the provisions of the Alternate Minimum Tax (AMT), the minimum tax payable shall be 18.5% (+HEC) of “adjusted total income” computed u/s 115JC, except in the case of units located in an IFSC deriving income solely in convertible foreign exchange, which shall be subjected to the AMT u/s 115JF at the rate of 9% only.

It may be noted that the above rates are normal tax rates, which are applicable to the normal income of resident individuals depending on their age. However, in the case of special incomes like long-term capital gains, winnings from lotteries, etc., special rates of income tax are applicable.

Further, the tax rates applicable in the case of resident individuals of age up to 60 shall be applicable to the non-resident individuals, i.e., the tax rates remain the same irrespective of the age of the non-resident individual concerned.

* Note: Completion of Age of 60/ 80 for Senior/ Very Senior Citizen Status Benefits?

Related Posts: >> Finance Act, 2022 <<