Rates of Income Tax for Assessment Year 2022-23 & 2023-24

Rates of Income Tax for Assessment Year 2022-23 & 2023-24, Amended in Finance Bill 2022 both Old Regime and New Regime for Individual, HUF, Co-operative Society, Firm, Company.

Table of Contents

(A) In the case of every Individual or Hindu Undivided Family (HUF)

Following are the Income Tax Rates Amended in Finance Bill 2022 both Old Regime and New Regime for Individual and HUF.

(A1) If the individual or HUF opts to be taxed under OLD REGIME

(I) In the case of every Individual (other than those covered in part (II) or (III) below) or Hindu Undivided Family (HUF)

*Total income (Rs.)*	*Rate of tax*
Upto 2,50,000	Nil
2,50,001 to 5,00,000	5%
5,00.001 to 10,00.000	20%
Above 10,00,000	30%

(II). In the case of every Individual, being a 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.

*Total Income (Rs.)*	*Rate of Tax*
Upto 3,00,000	Nil
3,00,001 to 5,00,000	5%
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

III. in the case of every individual, being a Resident In India. who is of the Age Of 80 Years Or More at any time during the previous year.

*Total income*	*Rate of tax*
Upto 5,00,000	Nil
5,00,001 to 10,00,0O0	20%
Above 10,00,000	30%

IV. In the case of AOP/BOI (other than a Co-Operative Society) Whether Incorporated Or Not, Or Every Artificial Judicial Person

*Total income (Rs.)*	*Rate of tax*
Upto 2,50,000	Nil
2,50,001 to 5,00,000	5%
5,00.001 to 10,00.000	20%
Above 10,00,000	30%

(A2) If the individual or HUF opts to be taxed under NEW REGIME (i.e. U/s 115BAC provided the conditions mentioned u/s 115BAC (2) are satisfied

(I) In the case of every Individual or Hindu Undivided Family (HUF)

*Total income (Rs.)*	*Rate of Tax*
Upto 2,50,000	NIL
From 2,50,001 to 5,00,000	5%
From 5,00,001 to 7,50,000	10%
From 7,50,001 to 10,00,000	15%
From 10,00,001 to 12,50,000	20%
From 12,50,001 to 15,00,000	25%
Above Rs. 15,00,000	30%

II. In the case of every Individual, being a 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.

[Same as Above]

III. in the case of every individual, being a Resident In India. who is of the Age Of 80 Years Or More at any time during the previous year.

[Same as Above]

(B) In the case of AOP/BOI (Other Than A Cooperative Society) Whether Incorporated Or Not, Or Every Artificial Judicial Person

Total income (Rs.)	Rate of tax
Upto 2,50,000	Nil
2,50,001 to 5,00,000	5%
5,00.001 to 10,00.000	20%
Above 10,00,000	30%

Surcharge on Income Tax :

The amount of income-Tax shall he increased by a surcharge for the purposes of the Union calculated at the following rates—

(a) where the total income (including the income by way of dividend or the income under the provisions of sections 111A, 112 and 112A of the Income-tax Act) exceeds 50,00,000 but does not exceed Rs. 1 crore	10% of such Income Tax
(b) where the total income (including the income by way of dividend or the income under the provisions of sections 111A, 112 and 112A of the income-tax Act) exceeds Rs.1 crore, but does not exceed Rs. 2 crore	15% of such Income Tax
(c) where the total income (excluding the income by way of dividend or the income under the provisions of sections 111A, 112 and 112A of the Income-tax Act) exceeds Rs. 2 crore but does not exceed Rs. 5 crore,	25% of such Income Tax
(d) where the total income (excluding the income by way of dividend or the income under the provisions of sections 111A, 112 and 112A of the Income-tax Act) exceeds Rs. 5 crore.	37% of such Income Tax
(e) where the total income (including the income by way of dividend or the income under the provisions of sections 111A, 112 and 112A) exceeds Rs. 2 crore, hut is not covered under clauses (c) and (d) above	15% of such Income Tax

Provided that in case where the total income includes any income by way of dividend or income chargeable under sections 111A, 112 and 112A of the Income-tax Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15%.

Provided further that in case of an association of persons consisting of only companies as its members, the rate of surcharge on the amount of Income-tax shall not exceed 15%.

Marginal Relief on Income Tax:

Marginal relief has also been provided in all the above cases, where surcharge is to be levied.

In the ease of persons mentioned above, where such income exceeds,—

(a) Rs. 50,00,000 but does not exceed I crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of Rs. 50,00,000 by more than the amount of income that exceeds Rs. 50,00,000 ;

(b) Rs. 1 crore but does not exceed Rs. 2 crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore;

(c) Rs. 2 Crore but does not exceed Rs. 5 crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of Rs. 2 crore by more than (he amount of income that exceeds Rs. 2 crore;

(d) Rs. 5 crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.

Cess on Income Tax:

‘Health and Education Cess @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied.

(B) In the case of every Co-operative Society

Co-operative societies (other than those who opt to be taxed under the newly inserted section 115BAD)

Co Operative societies who — opt to be taxed under the newly inserted section 115BAD provided the conditions mentioned u/s 115BAD(2) are satisfied

(1) where the total income does not exceed Rs. 10.000	10% of the total income
(2) where the total income exceeds 10,000 but does not exceed Rs. 20,000	Rs. 1,000 plus 20% of the amount by which the total income exceeds Rs.10,000
(3) where the total income exceeds Rs. 20,000	Rs.3,000 plus 30% of the amount by which the total income exceeds Rs. 20,000

22% of Total Income

Surcharges

Th amount of income-lax shall he increased by a surcharge at the rate of 12% of such income-tax in ease via co-operative society having a total income exceeding Rs. 1 crore.

10%

(irrespective of the fact whether the total income is less than or more than Rs. 1 crore)

Marginal Relief

The total amount payable as income-tax and surcharge on total income exceeding Rs. 1 crore shall not exceed the total amount payable as income-tax on a total income of Rs.1 crore by more than the amount of income that exceeds Rs.1 crore.

Not Applicable

Cess

‘Health and Education Cess’ @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied.

‘Health and Education Cess on
Income Tax’ and surcharge @ 4% shall be levied.

(C) In case of any Firm (including Limited Liability Partnership-LPP) —

On whole of the Income: 30%

Surcharge on Income Tax:

The amount of income-Lax shall be increased by a surcharge at the rate of 12% of such income-tax in case of a firm having a total income exceeding Rs. 1 crore.

Marginal Relief on Income Tax:

The total amount payable as income-tax and surcharge on total income exceeding Rs. 1 Crore shall not exceed the total amount payable as income-tax on a total income of Rs. 1 Crore by more than the amount of income that exceeds Rs. 1 crore.

Cess on Income Tax:

‘Health and Education Cess’ @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied.

(D) In the case of a Company

(i) For Domestic Companies:

If the comp any opts to be taxed as per the old regime

If the company opts to be taxed under the new regime i.e. U/s 115BAA provided it satisfies the
conditions of section 115BAA(2)

If the company is a new manufacturing company and it opts to be taxed U/s 115BAB(2) provided ii satisfies the conditions of section 115BAB(2)

(1)(a) If the total turnover or gross receipts of the previous year 2020-21 does not exceed Rs. 400 crore	25%
(b) In all other cases	30%
(2) Certain manufacturing domestic companies, who opt to be taxed u/s 115BA provided it satisfies the conditions of section 115BA(2)	25%

22%

15%

Surcharge	Surcharge	Surcharge
Surcharge at the rate of 7% shall be levied in case of a domestic company, if the total income of the domestic company exceeds Rs.1 crore but does not exceed Rs. 10 crore. Surcharge @ 12% shall he levied, if the total income of the domestic company exceeds Rs.10 crore.	10% (irrespective of the fact whether the total income is less than or more than Rs.1 crore)	10% (irrespective of the fact whether the total income is less than or more than Rs.1 crore)
Marginal Relief	Marginal Relief	Marginal Relief
However, the total amount payable as income-tax and surcharge on total income exceeding Rs.1 Crore but not exceeding Rs. 10 crore, shall not exceed the total amount payable as income-tax on a total income of Rs. 1 crore, by more than the amount of income that exceeds Rs.1 crore. The total amount payable as income-tax and surcharge on total income exceeding Rs.10 crore, shall not exceed the total amount payable as income-tax and surcharge on a total income of Rs. 10 crore, by more than the amount of income that exceeds Rs. 10 crore.	Not Applicable	Not Applicable
Cess	Cess	Cess
‘Health and Education Cess’ @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied,	‘Health and Education Cess on Income Tax’ and surcharge @ 4% shall be levied,	‘Health and Education Cess on Income Tax’ and surcharge @ 4% shall be levied.

(ii) For Foreign Company:

On whole of the income – 40%

Surcharge on Income Tax:

In case of companies other than domestic companies, the surcharge of 2% shall be levied if the total income exceeds I crore but does not exceed Rs. 10 crore.

The surcharge at the rate of 5% shall be levied if the total income of the company other than domestic company exceeds Rs. 10 crore.

Marginal Relief on Income Tax:

However, the total amount payable as income-tax and surcharge on total income exceeding I crore but not exceeding Rs. 1 Crore, shall not exceed the total amount payable as income Tax on a total income of Rs. 1 crore, by more than the amount of income that exceeds Rs.1 crore. The total amount payable as income-tax and surcharge on total income exceeding Rs. 10 crore, shall not exceed the total amount payable as income-tax and surcharge on a total income of Rs. 10 crore, by more than the amount of income that exceeds Rs. 10 crore.