BROWSE BY TOPICS
- Income Tax e-Filing
- Last Date To File ITR For 2022-23
- Income Tax Slabs FY 2023-24
- Which Is Better: Old vs New Tax Regime For Salaried Employees?
- House Property
- Business, Professional & Freelance
- Which ITR Should I File?
- Income Tax Refunds
- Paying Tax Due
- Salary Income
- Capital Gains Income
- Other income sources
- Advance Tax
- NRI
- HUF
- Income Tax Notices
POPULAR ARTICLES
- Budget 2023 Highlights: PDF Download, Key Takeaways, Important Points
- Budget 2023 Expectations For Income Tax: 80C & 80D Limit Increase, Tax Slab Changes For Salaried Employees
- Budget 2022 Highlights: PDF Download, Key Takeaways, Important Points
RELATED ARTICLES
- Budget 2022 Highlights: PDF Download, Key Takeaways, Important Points
- Budget 2023 Highlights: PDF Download, Key Takeaways, Important Points
- Budget 2023: Full List of Cheaper and Costlier Items
- How to file ITR Online – Step by Step Guide to Efile Income Tax Return, FY 2021-22 (AY 2022-23)
- Which ITR Should I File? Types of ITR Forms for FY 2021-22, AY 2022-23 – All ITR Forms
- UAN Login, Portal Registration, Universal Account Number Activation & Status Check
- Income Tax Raid, Search and Seizure – What, When, How
- ITR U – What is ITR-U Form and How to File ITR-U
Income Tax Slabs FY 2023-24 & AY 2024-25 (New & Old Regime Tax Rates)
The income tax slabs are different under the old and the new tax regimes. Further, the slab rates under the old tax regime are divided into three categories
- Indian Residents aged < 60 years + All the non-residents
- 60 to 80 years of age: Resident Senior citizens
- More than 80 years: Resident Super senior citizens
What Is Income Tax Slab?
In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers. Let us take a look at all the slab rates applicable for FY 2022-23 (AY 2023-24) and FY 2023-24(AY 2024-25).
Income Tax Slab Rates For FY 2022-23 (AY 2023-24)
a. New Tax regime
| Income Slabs | New Tax Regime FY 2022-23 (AY 2023-24) |
| ₹0 - ₹2,50,000 | – |
| ₹2,50,000 - ₹5,00,000 | 5% (tax rebate u/s 87A is available) |
| ₹5,00,000 - ₹7,50,000 | 10% |
| ₹7,50,000 - ₹10,00,000 | 15% |
| ₹10,00,000 - ₹12,50,000 | 20% |
| ₹12,50,000 - ₹15,00,000 | 25% |
| >₹15,00,000 | 30% |
b. Old Tax regime
Income tax slabs for individual aged below 60 years & HUF
| Income Slabs | Individuals Below The Age Of 60 Years and NRIs |
|---|---|
| Up to Rs 2.5 lakh | NIL |
| Rs 2.5 lakh - Rs 5 lakh | 5% |
| Rs 5 lakh - Rs 10 lakh | 20% |
| > Rs 10 lakh | 30% |
NOTE:
- Income tax exemption limit is up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs.
- Surcharge and cess will be applicable as discussed above
Income tax slab for individual aged above 60 years to 80 years
| Income Slabs | Tax Slabs for Senior Citizens (Aged 60 Years But Less Than 80 Years) |
|---|---|
| Rs 0 - Rs 3 lakh | NIL |
| Rs 3 lakh - Rs 5 lakh | 5% |
| Rs 5 lakh - Rs 10 lakh | 20% |
| > Rs 10 | 30% |
NOTE:
- Income tax exemption limit is up to Rs.3 lakh for senior citizens aged above 60 years but less than 80 years.
- Surcharge and cess will be applicable as discussed above
Income tax slab for Individual aged more than 80 years
| Income Slabs | Income Tax Slab for Super Senior Citizens (Aged 80 Years And Above) |
|---|---|
| Rs 0 - Rs 5 lakh* | NIL |
| Rs 5 lakh - Rs 10 lakh | 20% |
| > Rs 10 lakh | 30% |
NOTE:
- Income tax exemption limit is up to Rs 5 lakh for super senior citizen aged above 80 years.
- Surcharge and cess will be applicable as discussed above
Difference of tax slab rates between New tax regime vs Old Tax regime
Comparison of tax rates under New tax regime & Old tax regime for FY 2022-23 (AY 2023-24)
Slabs | Old Tax Regime | New Tax Regime | |||
| < 60 years of age & NRIs | > 60 to < 80 years | > 80 years | FY 2022-23 | FY 2023-24 | |
| ₹0 - ₹2,50,000 | NIL | NIL | NIL | NIL | NIL |
| ₹2,50,000 - ₹3,00,000 | 5% | NIL | NIL | 5% | NIL |
| ₹3,00,000 - ₹5,00,000 | 5% | 5% (tax rebate u/s 87A is available) | NIL | 5% | 5% |
| ₹5,00,000 - ₹6,00,000 | 20% | 20% | 20% | 10% | 5% |
| ₹6,00,000 - ₹7,50,000 | 20% | 20% | 20% | 10% | 10% |
| ₹7,50,000 - ₹9,00,000 | 20% | 20% | 20% | 15% | 10% |
| ₹9,00,000 - ₹10,00,000 | 20% | 20% | 20% | 15% | 15% |
| ₹10,00,000 - ₹12,00,000 | 30% | 30% | 30% | 20% | 15% |
| ₹12,00,000 - ₹12,50,000 | 30% | 30% | 30% | 20% | 20% |
| ₹12,50,000 - ₹15,00,000 | 30% | 30% | 30% | 25% | 20% |
| >₹15,00,000 | 30% | 30% | 30% | 30% | 30% |
Revised Income Tax Slab Rate FY 2023-24 (AY 2024-25) – For New Regime
| Income Slabs | Income Tax Rates FY 2023-24 (AY 2024-25) |
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,000 to Rs 6,00,000 | 5% on income which exceeds Rs 3,00,000 |
| Rs 6,00,000 to Rs 900,000 | Rs. 15,000 + 10% on income more than Rs 6,00,000 |
| Rs 9,00,000 to Rs 12,00,000 | Rs. 45,000 + 15% on income more than Rs 9,00,000 |
| Rs 12,00,000 to Rs 1500,000 | Rs. 90,000 + 20% on income more than Rs 12,00,000 |
| Above Rs 15,00,000 | Rs. 150,000 + 30% on income more than Rs 15,00,000 |
How to Calculate Income Tax from Income Tax Slabs?
Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income, and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues for FY 2022-23 (AY 2023-2024).
| Income Tax Slabs | Tax Rate | Tax Amount |
|---|---|---|
| *Income up to Rs 2,50,000 | No tax | - |
| Income from Rs 2,50,000 – Rs 5,00,000 | 5% (Rs 5,00,000 – Rs 2,50,000) | Rs 12,500 |
| Income from Rs 5,00,000 – 10,00,000 | 20% (Rs 8,00,000 – Rs 5,00,000) | Rs 60,000 |
| Income more than Rs 10,00,000 | 30% | - |
| Tax | Rs 72,500 | |
| Cess | 4% of Rs 72,500 | Rs 2,900 |
| Total tax in FY 2022-23 (AY 2023-24) | Rs 75,400 | |
*Please note that Rohit is an individual taxpayer assessee having an income tax exemption of Rs 2,50,000. For other taxpayers assessee i.e. senior citizens and super senior citizens, the Income tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000 respectively.
Important points to note if you select the new tax regime:
- Please note that the tax rates in the New tax regime is the same for all categories of Individuals, i.e. Individuals, Senior citizens and Super senior citizens.
- Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e. tax liability will be NIL in both – New and old/existing tax regimes.
*In Budget 2023, rebate under new regime has been increased and therefore, income upto Rs 7 lakh will be tax-free from FY 2023-24. - Surcharge: In case the income exceeds a certain threshold, surcharge will be applicable
- Surcharge rates are as below:
- 10% of Income tax if total income > Rs.50 lakh
- 15% of Income tax if total income > Rs.1 crore
- 25% of Income tax if total income > Rs.2 crore
- 37% of Income tax if total income > Rs.5 crore
*In Budget 2023, the highest surcharge rate of 37% has been reduced to 25% under the new tax regime. (applicable from 1st April 2023)
- Surcharge rates of 25% or 37%, will not be applicable to the income which is taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on income of Foreign Institutional Investors). Therefore, the highest surcharge rate on the tax payable for such incomes will be 15%.
- From Assessment Year 2023-24, the maximum surcharge rate on tax payable for dividend income or capital gain mentioned in Section 112 will be 15%. The surcharge rate for an Association of Persons (AOP) consisting entirely of companies will also be limited to 15%.
- Surcharge rates are as below:
- Additional Health and Education cess at the rate of 4% will be added to the income tax liability + surcharge in all cases
Conditions for opting new tax regime
The taxpayer opting for concessional rates in the New Tax regime will have to forgo certain exemptions and deductions available in the existing old tax regime. In all there are 70 deductions & exemptions that are not allowed, out of which the most commonly used are listed below:
| Particulars | Old Tax Regime | New Tax regime (until 31st March 2023) | New Tax Regime (From 1st April 2023) |
| Income level for rebate eligibility | ₹ 5 lakhs | ₹ 5 lakhs | ₹ 7 lakhs |
| Standard Deduction | ₹ 50,000 | – | ₹ 50,000 |
| Effective Tax-Free Salary income | ₹ 5.5 lakhs | ₹ 5 lakhs | ₹ 7.5 lakhs |
| Rebate u/s 87A | 12,500 | 12,500 | 25,000 |
| HRA Exemption | ✓ | X | X |
| Leave Travel Allowance (LTA) | ✓ | X | X |
| Other allowances including food allowance of Rs 50/meal subject to 2 meals a day | ✓ | X | X |
| Standard Deduction (Rs 50,000) | ✓ | X | ✓ |
| Entertainment Allowance Deduction and Professional Tax | ✓ | X | X |
| Perquisites for official purposes | ✓ | ✓ | ✓ |
| Interest on Home Loan u/s 24b on slef-occupied or vacant property | ✓ | X | X |
| Interest on Home Loan u/s 24b on let-out property | ✓ | ✓ | ✓ |
| Deduction u/s 80C (EPF|LIC|ELSS|PPF|FD|Children’s tuition fee etc) | ✓ | X | X |
| Employee’s (own) contribution to NPS | ✓ | X | X |
| Employer’s contribution to NPS | ✓ | ✓ | ✓ |
| Medical insurance premium – 80D | ✓ | X | X |
| Disabled Individual – 80U | ✓ | X | X |
| Interest on education loan – 80E | ✓ | X | X |
| Interest on Electric vehicle loan – 80EEB | ✓ | X | X |
| Donation to Political party/trust etc – 80G | ✓ | X | X |
| Savings Bank Interest u/s 80TTA and 80TTB | ✓ | X | X |
| Other Chapter VI-A deductions | ✓ | X | X |
| All contributions to Agniveer Corpus Fund – 80CCH | ✓ | Did not exist | ✓ |
| Deduction on Family Pension Income | ✓ | ✓ | ✓ |
| Gifts up to Rs 50,000 | ✓ | ✓ | ✓ |
| Exemption on voluntary retirement 10(10C) | ✓ | ✓ | ✓ |
| Exemption on gratuity u/s 10(10) | ✓ | ✓ | ✓ |
| Exemption on Leave encashment u/s 10(10AA) | ✓ | ✓ | ✓ |
| Daily Allowance | ✓ | ✓ | ✓ |
| Transport Allowance for a specially-abled person | ✓ | ✓ | ✓ |
| Conveyance Allowance | ✓ | ✓ | ✓ |
Comparison of Income Tax Slabs under New Regime before and after budget
Only the Income tax slabs under the new regimes were revised in the recent Union Budget 2023.
| Slab | New Tax Regime FY 2022-23 (AY 2023-24) | New Tax Regime FY 2023-24 (AY 2024-25) |
| ₹0 - ₹2,50,000 | – | – |
| ₹2,50,000 - ₹3,00,000 | 5% | – |
| ₹3,00,000 - ₹5,00,000 | 5% | 5% |
| ₹5,00,000 - ₹6,00,000 | 10% | 5% |
| ₹6,00,000 - ₹7,50,000 | 10% | 10% |
| ₹7,50,000 - ₹9,00,000 | 15% | 10% |
| ₹9,00,000 - ₹10,00,000 | 15% | 15% |
| ₹10,00,000 - ₹12,00,000 | 20% | 15% |
| ₹12,00,000 - ₹12,50,000 | 20% | 20% |
| ₹12,50,000 - ₹15,00,000 | 25% | 20% |
| >₹15,00,000 | 30% | 30% |
Example for Old Tax regime Vs New Tax regime? Which is better?
The new tax regime can largely benefit middle-class taxpayers who have a taxable income of up to Rs 15 lakh. The old regime is a better option for high-income earners.
The new income tax regime is beneficial for people who make low investments. As the new regime offers seven lower-income tax slabs, anyone paying taxes without claiming tax deductions can benefit from paying a lower rate of tax under the new tax regime. For instance, the assessee having total income before deduction up to Rs 12 lakh will have higher tax liability under the old system if they have investments less than Rs 1.91 lakh. Therefore, if you invest less in tax-saving schemes, go for the new regime.
That being said if you already have in place a financial plan for wealth creation by making investments in tax-saving instruments; mediclaim and life insurance; making payments of children’s tuition fees; payment of EMIs on education loan; buying a house with a home loan; and so on, the old regime helps you with higher tax deductions and lower tax outgo.
In light of the above and considering the new income tax regime, if taxpayers want to opt for the concessional tax rates, they may evaluate both regimes. Hence, it is advisable to do a comparative evaluation and analysis under both regimes and then choose the most beneficial one as it may vary from person to person. Read a detailed breakdown on this topic here
When can I opt for old vs new regime?
| Nature of Income | Time of Selection of option of old vs new regime |
|---|---|
| Income from Salary or any other head of income attracting TDS | At the start of the financial year, an employee has the choice to select the new tax regime and inform their employer. It cannot be modified during the year. However, the option can be modified when filing the Income Tax Return. |
| Income from Business & Profession | In case you have Business or profession income, the choice between tax regimes for can only be made once in a lifetime. |
Income Tax Rate for domestic companies – FY 2022-23
| Particulars | Old regime Tax rates | New Regime Tax rates |
|---|---|---|
| Company opts for section 115BAB (not covered in section 115BA and 115BAA) & is registered on or after October 1, 2019 and has commenced manufacturing on or before 31st March, 2023. | – | 15% |
| Company opts for Section 115BAA , wherein the total income of a company has been calculated without claiming specified deductions, incentives, exemptions and additional depreciation | – | 22% |
| Company opts for section 115BA registered on or after March 1, 2016 and engaged in manufacture of any article or thing and does not claim deduction as specified in the section clause. | – | 25% |
| Turnover or gross receipt of the company is less than Rs. 400 crore in the previous year 2018-19 | 25% | 25% |
| Any other domestic company | 30% | 30% |
*Please refer to the new sections for checking the applicability for above concessional income tax rates.
NOTE:
- Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
- Surcharge applicable for companies is as below:
- 7% of Income tax where total income > Rs 1 crore
- 12% of Income tax where total income > Rs.10 crore
- 10% of income tax where domestic company opted for section 115BAA and 115BAB
Income tax rate for Partnership firm or LLP as per old/ new regime.
A partnership firm/ LLP is taxable at 30%.
NOTE:
- 12% Surcharge is levied in income is more than Rs 1 crore
- Health and Education Cess at the rate of 4%will be applicable
- No concessional rates are introduced for firms LLPs in nex tax regime
Income tax slab rates for FY 2021-22
Income tax slab for Individual aged below 60 years & HUF
| Income Tax Slab | Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs |
|---|---|
| Up to ₹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% |
NOTE:
- Income tax exemption limit is up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs
- Surcharge and cess will be applicable as discussed above
- An additional 4% Health & education cess will be applicable on the tax and surcharge amount
Income tax slab for Individual aged above 60 years to 80 years
| Income Tax Slab | Tax Rates for Senior citizens aged above 60 Years & Less than 80 Years |
|---|---|
| Up to ₹ 3,00,000* | No tax |
| ₹3,00,000 - ₹5,00,000 | 5% |
| ₹5,00,000 - ₹10,00,000 | 20% |
| More than ₹10,00,000 | 30% |
NOTE:
- Income tax exemption limit is up to Rs.3 lakh for senior citizens aged above 60 years but less than 80 years.
- Surcharge and cess will be applicable as discussed above
Income tax slab for Individual aged more than 80 years
| Income Tax Slab | Tax Rates for Super Senior Citizens (Aged 80 Years And Above) |
|---|---|
| Up to ₹5,00,000* | No tax |
| ₹5,00,000 - ₹10,00,000 | 20% |
| More than ₹10,00,000 | 30% |
NOTE:
- Income tax exemption limit is up to Rs 5 lakh for super senior citizen aged above 80 years.
- Surcharge and cess will be applicable as discussed above
Income Tax Slab FY 2018-19 (AY 2019-20) for Domestic Companies
| Turnover Particulars | Tax Rate |
|---|---|
| Gross turnover upto 250 Cr. in the previous year | 25% |
| Gross turnover exceeding 250 Cr. in the previous year | 30% |
NOTE:
- In addition cess and surcharge is levied as follows:
- Cess: 4% of corporate tax
- Surcharge applicability:
- Taxable income is more than 1 Crore but less than 10 Crores: 7%
- Taxable income is more than 10 Crores: 12%
Income Tax Slab Rates for FY 2018-19
Income tax slab for Individual aged below 60 years & HUF
| Income Tax Slab | Tax Rates for Individual & HUF Below the Age Of 60 Years |
|---|---|
| Income up to Rs 2,50,000* | No tax |
| Income from Rs 2,50,000 – Rs 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
- 15% of income tax, where the total income exceeds Rs.1 crore.
Income tax slab for Individual aged above 60 years to 80 years
| Income Tax Slab | Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years |
|---|---|
| Income up to Rs 3,00,000* | No tax |
| Income from Rs 3,00,000 - Rs 5,00,000 | 5% |
| Income from Rs 5,00,000 - 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
- 15% of income tax, where the total income exceeds Rs.1 crore.
Income tax slab for Individual aged more than 80 years
| Income Tax Slab | Tax Rates for Super Senior Citizens (Aged 80 Years And Above) |
|---|---|
| Income up to Rs 5,00,000* | No tax |
| Income from Rs 5,00,000 - Rs 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
- 5% of income tax, where the total income exceeds Rs.1 crore
Income Tax Slab for Domestic Companies FY 2018-19
| Turnover Particulars | Tax Rate |
|---|---|
| Gross turnover upto 250 Cr. in the previous year | 25% |
| Gross turnover exceeding 250 Cr. in the previous year | 30% |
NOTE:
- In addition cess and surcharge is levied as follows:
- Cess: 4% of corporate tax.
- Surcharge applicability:
- Taxable income is more than 1 Crore but less than 10 Crore: 7%
- Taxable income is more than 10 Crore :12%
Income Tax Slab Rates for FY 2017-18
Select your Age Group: Less Than 60 Years Old 60-80 years Above 80 years Domestic Companies
Income tax slab for Individual below 60 years & HUF
Income Tax Slab | Tax Rates for Individual & HUF Below the Age Of 60 Years |
Income up to Rs 2,50,000* | No tax |
Income from Rs 2,50,000 – Rs 5,00,000 | 5% |
Income from Rs 5,00,000 – 10,00,000 | 20% |
Income more than Rs 10,00,000 | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs. 50 lakh up to Rs. 1 crore.
- 15% of income tax, where the total income exceeds Rs. 1 crore.
Income tax slab for Individual aged above 60 years to 80 years
Income Tax Slab | Tax Rate for Senior citizens aged 60 Years But Less than 80 Years |
Income up to Rs 3,00,000* | No tax |
Income from Rs 3,00,000 – Rs 5,00,000 | 5% |
Income from Rs 5,00,000 – 10,00,000 | 20% |
Income more than Rs 10,00,000 | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore
- 15% of income tax, where the total income exceeds Rs.1 crore.
Income tax slab for Individual aged more than 80 years
Income Tax Slab | Tax Rates for Super Senior Citizens (Aged 80 Years And Above) |
Income up to Rs 5,00,000* | No tax |
Income from Rs 5,00,000 – 10,00,000 | 20% |
Income more than Rs 10,00,000 | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore
- 15% of income tax, where the total income exceeds Rs.1 crore.
Income Tax Slab for Domestic Companies FY 2017-18
Turnover Particulars | Tax Rate |
Gross turnover upto 250 Cr. in the previous year | 25% |
Gross turnover exceeding 250 Cr. in the previous year | 30% |
NOTE:
- In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax.
- Surcharge applicability:
- Taxable income is more than 1 Crore but less than 10 Crore: 7%
- Taxable income is more than 10 Crore: 12%
Frequently Asked Questions (FAQs)
1. Do I have to mandatorily opt for New tax regime while filing returns for AY 2022–23?
Taxpayers have the freedom to select either the New Tax regime or stick with the Old tax regime. For employees, the choice needs to be made at the beginning of the year and can be modified at the time of ITR filing. However, if you are engaged in business or profession, the option to switch to New Tax regime is avaialble only once in your lifetime. We recommend that you carefully evaluate your tax outgo under both regimes and then select the one which is most beneficial to you.
2. Can I claim 80C deductions and opt for a new income tax slab regime ?
No, the new tax regime does not allow many deductions and exemptions which are otherwise available in the old tax regime. Deductions u/s 80C cannot be claimed if the taxpayer is opting for New tax regime.
3. How should I calculate income tax for F.Y 2021-22?
For FY 22-23, taxpayers have the option to select between two tax regimes: the old tax regime or the new one.
While opting for the new tax regime, the taxpayer will have to forgo certain deductions and exemptions which are otherwise allowed in the old tax regime. Only one deduction is allowed under the new tax regime, i.e. Section 80CCD(2) for employer’s contribution to the employee’s National Pension Scheme (NPS).
4. How does the government collect the taxes?
Taxes are collected by the Government through three means:
- Voluntary payment by taxpayers through various designated Banks. For example, Advance Tax and Self Assessment Tax payments,
- Taxes deducted at source [TDS] and
- Taxes collected at source [TCS].
5. What is Previous year and Assessment year?
The Income-tax law has two important terms: (i) Previous year and (ii) Assessment year. It is extremely important for determining taxpayer's income and tax payable amount.
(i) Previous year: Previous year is the year in which the income is earned which typically starts from 1st April and ends on 31st March. Whereas, the year immediately following the previous year (1st April to 31st March) is known as ‘Assessment Year’.
For example, the current previous year is 1st April 2022 to 31st March 2023, i.e. FY 2022-23. The corresponding assessment year is 1st April 2023 to 31st March 2024, i.e. AY 2024-25.
6. On the Challan, what does income tax on companies and income tax other than companies mean?
The tax that is to be paid by the companies on their income is called as corporate tax, and for payment of the same, it is mentioned in the challan as Income-tax on Companies (Corporation tax)-0020. For payment of the tax by non-corporate assessees, it is to be mentioned in the challan as Income-tax (other than Companies)-0021
7. Is the due date for filing an income tax return same for all taxpayers?
No, the due date for all the taxpayers is not the same. For individual taxpayers the due date is 31st July of the assessment year unless extended by the government.
8. What is the meaning of rebate under section 87A under the IT Act?
Section 87A is a legal provision which allows for tax rebate under the Income Tax Act of 1961. The section which was inserted through the Finance Act of 2013 provides tax relief for individuals earning below a specified limit. Section 87 A provides that anyone who is residing in India and whose income does not exceed Rs 5,00,000 is eligible to claim a rebate. Thus full income tax rebate is available with individuals with less than Rs 5 Lac of total taxable income. This rebate is applicable only to individuals and not companies, etc and is calculated before adding the health and educational cess of 4 %.
9. Who decides the IT slab rates and can they change?
Yes, IT slab rates can be changed by the government. If there are changes in IT slab rates for the financial year then they are introduced in the Budget and presented in Parliament.
10. Are there separate slab rates for different categories?
Yes, there are separate slab rates under the old and new tax regimes. Further, the slab rates under the old tax regime are categorised based on age:
- individual taxpayers aged below 60 years,
- between 60 to 80 years (senior citizens) and
- above 80 years (super senior citizens).
Also tax rate for partnership firms and LLPs, Companies, Local authorities and Co-operative societies etc are different.
11. Do I need to file Income Tax Return (ITR) if my annual income is below ₹2.5 lakh of basic exemption limit?
Even if your income is below the exemption limit, you must file your ITR if any of these conditions apply to you.
12. How to file an income tax return online?
To submit your income tax return online, log on to either the income tax e-filing portal or you can also e-file through Cleartax. For e-filing through the income tax portal, log in to www.incometax.gov.in. You can also download the offline JSON utility and file the ITR. Remember to verify the return within 30 of filing ITR. ITR filing is incomplete without verification.
Please click here to read the step-by-step guide on how to e-file ITR on the income tax e-filing portal.
13. How much income is tax free in India?
Income tax law has prescribed a basic exemption limit for individuals upto which the taxpayers are not required to pay taxes. Such a limit is different for different categories of taxpayers. Individual below 60 years of age are not required to pay tax upto the income limit of Rs 2.5 Lakh. Individuals above 60 years but less than 80 years of age are not required to pay tax upto Rs 3 lakh of income. Individuals above 80 years are not required to pay tax upto Rs 5 lakh of income. The basic exemption limit for all the individuals under the new tax regime is Rs 2.5 lakh, irrespective of age.
14. How to calculate surcharge on income tax?
Surcharge is a tax on tax. Hence surcharge is calculated on the tax payable and not on the income earned. For example, if you have an income of Rs 1000 with 30% tax of Rs. 300, if the income is subject to surcharge then 10% surcharge would be levied on tax of Rs. 300 i.e. Rs 30. Surcharge is levied at different rates i.e
- 10% is levied is total income is > 50 lakh,
- 15% is levied if total income is more than 1 crore,
- 25% of income if total income is > 2 crore and
- 37% if total income is more than 5 crore.
15. How to calculate the age of a senior citizen for income tax?
Individual above the age of 60 years is regarded as a senior citizen whereas an individual above 80 years is regarded as a super senior citizen for the purpose of income tax. Senior citizens and super senior citizens have been provided higher tax exemption limits and specific benefits by the income tax law in order to provide some relief.
16. How to pay income tax online?
The income tax payment facility has been migrated from OLTAS to the 'e-Pay Tax' facility of the e-filing portal. You can refer to this step-by-step guide for making your tax payments.
17. Will my income be taxed if I am an agriculturist?
Any income which is generated from agriculture or its allied activities will not be taxed. However, it will be considered for determining the tax rate while calculating tax on any non-agricultural income that you may have.
18. If my income is 5 lakh, how much tax do I have to pay?
No tax is payable since tax rebate is available
19. If my income is 7 lakh, how much tax do I have to pay?
New Regime: 33,800
Old Regime: 54,600
20. If my income is 10 lakh, how much tax do I have to pay?
New Regime: 78,000
Old Regime: 1,17,000
21. If my income is 15 lakh, how much tax do I have to pay?
New Regime: 1,95,000
Old Regime: 2,73,000
22. If my income is 20 lakh, how much tax do I have to pay?
New Regime: 3,51,000
Old Regime: 4,29,000
These taxes have been calculated based on the assumption that they are Net Taxable Income after deducting all deductions. However, you may add your exact income details on this simplified income tax calculator to find out the exact tax payable. If you are calculating for FY2022-23, make sure to select the correct financial year.
Clear offers taxation & financial solutions to individuals, businesses, organizations & chartered accountants in India. Clear serves 1.5+ Million happy customers, 20000+ CAs & tax experts & 10000+ businesses across India.
Efiling Income Tax Returns(ITR) is made easy with Clear platform. Just upload your form 16, claim your deductions and get your acknowledgment number online. You can efile income tax return on your income from salary, house property, capital gains, business & profession and income from other sources. Further you can also file TDS returns, generate Form-16, use our Tax Calculator software, claim HRA, check refund status and generate rent receipts for Income Tax Filing.
CAs, experts and businesses can get GST ready with Clear GST software & certification course. Our GST Software helps CAs, tax experts & business to manage returns & invoices in an easy manner. Our Goods & Services Tax course includes tutorial videos, guides and expert assistance to help you in mastering Goods and Services Tax. Clear can also help you in getting your business registered for Goods & Services Tax Law.
Save taxes with Clear by investing in tax saving mutual funds (ELSS) online. Our experts suggest the best funds and you can get high returns by investing directly or through SIP. Download Black by ClearTax App to file returns from your mobile phone.
Cleartax is a product by Defmacro Software Pvt. Ltd.
Company PolicyTerms of use
ISO 27001
Data Center
SSL Certified Site
128-bit encryption