Individual taxpayers in India are taxed based on a slab system. Income tax slabs refer to different tax rates applied to different income ranges. These tax rates increase as the taxpayer's income increases. Typically, this type of taxation allows for progressive and fair tax systems. Every year, the tax slab structure changes during the Union budget.
"Individual taxpayers" can be classified into three categories as per Indian Income Tax:
- Individuals under the age of 60, including residents and non-residents
- Resident Senior citizens (60 to 80 years of age)
- Resident Super senior citizens (aged more than 80 years)
There are two tax regimes available to individuals and HUFs: the Old Tax Regime and the New Tax Regime with a lower tax rate (paragraph 115 BAC of the Income Tax Act).
Note that the taxpayers opting for concessional rates in the New Tax Regime will not be able to take advantage of certain Exemptions and Deductions (such as 80C, 80D, 80TTB, HRA) available in the Existing Tax Regime.
Suggested Read: Old Tax Regime vs New Tax Regime
What are the Tax Slabs for AY 2022-23?
Here are the three types of tax slabs for individual taxpayers in India.
Age Group below 60
For Individual (resident or non-resident) under the age of 60 years anytime during the previous year:
| Old Tax Regime | New Tax Regime u/s 115BAC | ||
|---|---|---|---|
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
|
Up to ₹ 2,50,000 |
Nil |
Up to ₹ 2,50,000 |
Nil |
|
₹ 2,50,001 - ₹ 5,00,000 |
5% above ₹ 2,50,000 |
₹ 2,50,001 - ₹ 5,00,000 |
5% above ₹ 2,50,000 |
|
₹ 5,00,001 - ₹ 10,00,000 |
₹ 12,500 + 20% above ₹ 5,00,000 |
₹ 5,00,001 - ₹ 7,50,000 |
₹ 12,500 + 10% above ₹ 5,00,000 |
|
Above ₹ 10,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
₹ 7,50,001 - ₹ 10,00,000 |
₹ 37,500 + 15% above ₹ 7,50,000 |
|
|
|
₹ 10,00,001 - ₹ 12,50,000 |
₹ 75,000 + 20% above ₹ 10,00,000 |
|
|
|
₹ 12,50,001 - ₹ 15,00,000 |
₹ 1,25,000 + 25% above ₹ 12,50,000 |
|
|
|
Above ₹ 15,00,000 |
₹ 1,87,500 + 30% above ₹ 15,00,000 |
Age Group above 60
For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year:
| Old Tax Regime | New Tax Regime u/s 115BAC | ||
|---|---|---|---|
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
|
Up to ₹ 3,00,000 |
Nil |
Up to ₹ 2,50,000 |
Nil |
|
₹ 3,00,001 - ₹ 5,00,000 |
5% above ₹ 3,00,000 |
₹ 2,50,001 - ₹ 5,00,000 |
5% above ₹ 2,50,000 |
|
₹ 5,00,001 - ₹ 10,00,000 |
₹ 10,000 + 20% above ₹ 5,00,000 |
₹ 5,00,001 - ₹ 7,50,000 |
₹ 12,500 + 10% above ₹ 5,00,000 |
|
Above ₹ 10,00,000 |
₹ 1,10,000 + 30% above ₹ 10,00,000 |
₹ 7,50,001 - ₹ 10,00,000 |
₹ 37,500 + 15% above ₹ 7,50,000 |
|
|
|
₹ 10,00,001 - ₹ 12,50,000 |
₹ 75,000 + 20% above ₹ 10,00,000 |
|
|
|
₹ 12,50,001 - ₹ 15,00,000 |
₹ 1,25,000 + 25% above ₹ 12,50,000 |
|
|
|
Above ₹ 15,00,000 |
₹ 1,87,500 + 30% above ₹ 15,00,000 |
Age Group above 80
For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year:
| Existing Tax Regime | New Tax Regime u/s 115BAC | ||
|---|---|---|---|
| Income Tax Slab | Income Tax Rate | Income Tax Slab | Income Tax Rate |
|
Up to ₹5,00,000 |
Nil |
Up to ₹ 2,50,000 |
Nil |
|
₹ 5,00,001 - ₹ 10,00,000 |
20% above ₹ 5,00,000 |
₹ 2,50,001 - ₹ 5,00,000 |
5% above ₹ 2,50,000 |
|
Above ₹ 10,00,000 |
₹ 1,00,000 + 30% above ₹ 10,00,000 |
₹ 5,00,001 - ₹ 7,50,000 |
₹ 12,500 + 10% above ₹ 5,00,000 |
|
|
|
₹ 7,50,001 - ₹ 10,00,000 |
₹ 37,500 + 15% above ₹ 7,50,000 |
|
|
|
₹ 10,00,001 - ₹ 12,50,000 |
₹ 75,000 + 20% above ₹ 10,00,000 |
|
|
|
₹ 12,50,001 - ₹ 15,00,000 |
₹ 1,25,000 + 25% above ₹ 12,50,000 |
|
|
|
Above ₹ 15,00,000 |
₹ 1,87,500 + 30% above ₹ 15,00,000 |
Note:
- In both tax regimes, the Surcharge and Health & Education cess rates remain the same.
- Resident Individuals whose total income does not exceed ₹5,00,000 are also eligible for a rebate (under Section 87-A) of up to 100% of income tax or ₹ 12,500, whichever is less. In both tax regimes, this rebate is available.
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