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

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

(A) In the case of every Individual or Hindu Undivided Family (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.  Same as Above
III.  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 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 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 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.

Cess on Income Tax:

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

See also  Amendments relating to Disallowance of the Expenditure in Respect of Exempt Income – by The Finance Bill 2022
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