Before knowing the tax rates, it is very important to understand the terms Financial year (FY) and Assessment Year (AY).

The below-mentioned tax rates/ slab is on the income earned for the period 1 April 2022 to 31 March 2023. FY stands for the ‘financial year’ which is from 1 April 2022 to 31 March 2023. AY stands for Assessment year which is 1 April 2023 to 31 March 24.

For individuals, the due date to file the income tax return for the income earned from 1 April 2022 to 31 March 2023 is 31 July 2023. 

However, considering the current updates available after the Finance Minister’s speech, there is no change in tax slabs. Therefore, the tax rates remain unchanged.

Income tax Rates 

1. Income Tax Rate & Slab for Individuals & HUF:

1a. Individual (Resident or Resident but not Ordinarily Resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year & for HUF:

 

Taxable income	Tax Rate (Existing Scheme)	Tax Rate (New Scheme)
Up to Rs. 2,50,000	NIL	NIL
Rs. 2,50,001 to Rs. 5,00,000	5%	5%
Rs. 5,00,001 to Rs. 7,50,000	20%	20%
Rs. 7,50,001 to Rs. 10,00,000	20%	15%
Rs. 10,00,001 to Rs. 12,50,000	30%	20%
Rs. 12,50,001 to Rs. 15,00,000	30%	25%
Above Rs. 15,00,000	30%	30%

 1b. Resident or Resident but not Ordinarily Resident senior citizen, i.e., every individual, being a resident or Resident but not Ordinarily Resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:

Taxable income	Tax Rate (Existing Scheme)	Tax Rate (New Scheme)
Up to Rs. 2,50,000	Nil	Nil
Rs. 2,50,001 to Rs. 3,00,000	Nil	5%
Rs. 3,00,001 to Rs. 5,00,000	5%	5%
Rs. 5,00,001 to Rs. 7,50,000	20%	10%
Rs. 7,50,001 to Rs. 10,00,000	20%	15%
Rs. 10,00,001 to Rs. 12,50,000	30%	20%
Rs. 12,50,001 to Rs. 15,00,000	30%	25%
Above Rs. 15,00,000	30%	30%

 1c. Resident or Resident but not Ordinarily Resident super senior citizen, i.e., every individual, being a resident or Resident but not Ordinarily Resident in India, who is of the age of 80 years or more at any time during the previous year:

 

Taxable income	Tax Rate (Existing Scheme)	Tax Rate (New Scheme)
Up to Rs. 2,50,000	Nil	NIL
Rs. 2,50,001 to Rs. 5,00,000	Nil	5%
Rs. 5,00,001 to Rs. 7,50,000	20%	10%
Rs. 7,50,001 to Rs. 10,00,000	20%	15%
Rs. 10,00,001 to Rs. 12,50,000	30%	20%
Rs. 12,50,001 to Rs. 15,00,000	30%	25%
Above Rs. 15,00,000	30%	30%

 

Surcharge:
a) 10% of Income-tax where total income exceeds Rs.50 lakh
b) 15% of Income-tax where total income exceeds Rs.1 crore
c) 25% of Income-tax where total income exceeds Rs.2 crore
d) 37% of Income-tax where total income exceeds Rs.5 crore

Note: 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%.

Education cess: 4% of income tax plus surcharge

Note: A resident or Resident but not an Ordinarily Resident individual is entitled to a rebate under section 87A if his total income does not exceed Rs. 5, 00,000. The amount of rebate shall be 100% of income tax or Rs. 12,500, whichever is less. rebate under section 87A is available in both schemes I.e. existing scheme as well as the new scheme.

2. Income Tax Rates for AOP/BOI/Any other Artificial Juridical Person:

Taxable income	Tax Rate
Up to Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	5%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Surcharge:

1. a) 10% of Income-tax where total income exceeds Rs.50 lakh
2. b) 15% of Income-tax where total income exceeds Rs.1 crore
3. c) 25% of Income-tax where total income exceeds Rs.2 crore
4. d) 37% of Income-tax where total income exceeds Rs.5 crore

Note: Enhanced Surcharge rate (25% or 37%) is not applicable in case of specified incomes I.e. short-term capital gain u/s 111A, long-term capital gain u/s 112A & short-term or long-term capital gain u/s 115AD(1)(b).

Education cess: 4% of tax plus surcharge

 

3. Tax Rate for Partnership Firms:

A partnership firm (including LLP) is taxable at 30%.

Surcharge: 12% of Income-tax where total income exceeds Rs. 1 crore

Education cess: 4% of Income-tax plus surcharge

 

3a. Income Tax Slab Rate for Local Authority:

A local authority is Income taxable at 30%.

Surcharge: 12% of Income-tax where total income exceeds Rs. 1 crore

Education cess: 4% of tax plus surcharge

 

3b. Tax Slab Rate for Domestic Companies:

A domestic company is taxable at 30%. However, the tax rate is 25% if turnover or gross receipt of the company does not exceed Rs. 400 crore in the previous year.

Particulars	Tax Rate(%)
If turnover or gross receipt of the company does not exceed Rs. 400 crore in the previous year 2019-20	25%
If the company opted for section 115 BA (Note 1)	25%
If the company opted for section 115 BAA (Note 2)	22%
If the company opted for section 115 BAB (Note 3)	15%
Any other domestic company	30%

 

Note 1: Section 115BA – A domestic company which is registered on or after March 1, 2016, and engaged in the business of manufacture or production of any article or thing and research in relation to (or distribution of) such article or thing manufactured or produced by it and also It is not claiming any deduction u/s 10AA, 32AC, 32AD, 33AB, 33ABA, 35(1)(ii)/(iia)/(iii)/35(2AA)/(2AB), 35AC, 35AD, 35CCC, 35CCD, section 80H to 80TT (Other than 80JJAA) or additional depreciation, can opt section 115BA on or before the due date of return by filing Form 10-IB online. The company cannot claim any brought-forward losses (if such loss is related to the deductions specified in the above point).

Note 2: Section 115 BAA – Total income of a company is taxable at the rate of 22% (from A.Y 2020-21) if the following conditions are satisfied:

– Company is not claiming any deduction u/s 10AA or 32(1)(iia) or 32AD or 33AB or 33ABA or 35(1)(ii)/(iia)/(iii)/35(2AA)/(2AB) or 35AD or 35CCC or 35CCD or section 80H to 80TT (Other than 80JJAA).

– The Company is not claiming any brought forward losses (if such loss is related to the deductions specified in the above point).

– Provisions of MAT are not applicable to such companies after exercising their option. The company cannot claim the MAT credit (if any is available at the time of exercising section 115 BAA).

Note 3: Section 115 BAB – Total income of a company is taxable at the rate of 15% (from A.Y 2020-21) if the following conditions are satisfied:

– Company (not covered in section 115BA and 115BAA) is registered on or after October 1, 2019, and commenced manufacturing on or before 31st March 2023.

– Company is not formed by splitting up or reconstructing a business already in existence.

– Company does not use any machinery or plant previously used for any purpose.

– Company does not use any building previously used as a hotel or a convention center, as the case may be.

– The company is not engaged in any business other than the business of manufacture or production of any article or thing and research in relation to (or distribution of) such article or thing manufactured or produced by it. Business of manufacture or production shall not include the business of –

• Development of computer software;
• Mining;
• Conversion of marble blocks or similar items into slabs;
• Bottling of gas into the cylinder;
• Printing of books or production of the cinematographic film; or
• Any other notified by Central Govt.

– Company is not claiming any deduction u/s 10AA or 32(1)(iia) or 32AD or 33AB or 33ABA or 35(1)(ii)/(iia)/(iii)/35(2AA)/(2AB) or 35AD or 35CCC or 35CCD or section 80H to 80TT (Other than 80JJAA and 80M).

– The Company is not claiming any brought forward losses (if such loss is related to the deductions specified in the above point).

– Provisions of MAT are not applicable to such companies after exercising their option. The company cannot claim the MAT credit (if any is available at the time of exercising section 115 BAA).

Surcharge:

1. a) 7% of Income-tax where total income exceeds Rs.1 crore
2. b) 12% of Income-tax where total income exceeds Rs.10 crore
3. c) 10% of income tax where domestic company opted for section 115 BAA and 115 BAB

Education cess: 4% of Income-tax plus surcharge.

 

 4. Tax Rates for Foreign Companies:

A foreign company is taxable at 40%

Surcharge: 

1. a) 2% of Income-tax where total income exceeds Rs. 1 crore
2. b) 5% of Income-tax where total income exceeds Rs. 10 crore

Education cess: 4% of Income-tax plus surcharge.

5. Income Tax Slab for Co-operative Society

Taxable income	Tax Rate (Existing Scheme)	Tax Rate (New Scheme)
Up to Rs. 10,000	10%	–
Rs. 10,001 to Rs. 20,000	20%	22%
Above Rs. 20,000	30%	–

 

Surcharge:

1. a) 12% of Income-tax where total income exceeds Rs. 1 crore
2. b) In the case of the Concessional scheme, the surcharge rate is 10%

Education cess: 4% of Income-tax plus surcharge.

 

Income Tax rates of last 5 years:

Income Tax Rate FY 2016 - 17 (AY 2017-18)

Income Tax Slab Rate & Deductions - FY 2017-18 (AY 2018-19)

Income-tax Rates FY 2019-20 (AY 2020-21)

Income-tax Rates FY 2020-21 (AY 2021-22)

Income-tax Rates FY 2021-22 (AY 2022-23)

Disclaimer: – The articles are for information purposes only. Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. You must consult a financial advisor who understands your specific circumstances and situation before taking an investment decision.