What is the Income Tax slab in India for FY (22-23) & who are the Income Tax Payers in India?

What are Different Income Tax Slab Rates?

Individual taxpayers will need?to pay the income tax based?on the slab system, they fall under. Depending on the individual's income, he /she may fall under a different tax slab.

Therefore, individuals with a higher income will need?to pay more taxes. The slab system was introduced to maintain a fair tax system in the country. The slabs?tend to change at every budget.?

Income tax?slab rates are defined based?on the earnings of the taxpayers. Income tax slab rates are broadly?categorized as follows.

1. Special Tax Rates for Individuals and HUFs (New Regime)??

Income Tax Slab????????Tax Rate?

a) Up to 2.5 Lakh ????????????????????????NIL

?b) From 2.5 Lakh-Rs. 5Lakh ???????5% if total Income?exceeds 2.5 lakh+12,500

?c) Rs.5Lakh to Rs.7.5 Lakh ????????10% if total Income exceeds?Rs. 5Lakh+12500

?d)Rs.7.5 Lakh toRs. 10Lakh ?????15% if total Income exceeds Rs.7.5Lakh+37500.

?e) Rs.10Lakh toRs. 12.5Lakh ????20% if total income exceeds Rs.10 Lakh+75000

?f) Rs.12.5Lakh toRs. 15Lakh?25% if total income exceeds Rs. 12.5 Lakh+. Rs.1,25,000.

g) Above Rs. 15 Lakh 30% if total income exceeds Rs. 15Lakh+Rs. 1,87.500.?

Things you May?must keep in mind before opting?for New Tax?Slab:-?

?The option?can be exercised on or before?for every previous year, if you as an individual?or as a member of a Hindu?Undivided Families ( HUF) do not have any business income.

2. Income Tax Slabs & Rates as per Old Regime FY2022-23:-

?Income Tax Slab???????????Tax Rate?

?Up to 2.5 Lakh ????????????????????????NIL

?Abobe2.5Lakh-Rs.5Lakh ??????5% of the total that is more than. 2.5Lakh+4% cess

Above 5Lakh-Rs.10Lakh 20% of the total Income that is more ??thanRs.5Lakh+Rs. 12500+4%cess.

AboveRs10 Lakh ?????????????30% of the total Income that is more than Rs. 10Lakh+Rs.1,12,500+4% cess.

Individuals who have an income?of less than Rs. 5Lakh are eligible for tax?

deductions under?Section 87A.

3. INCOME TAX SLAB BETWEEN 60-80YEARS (Senior Citizen):-

Income Tax Slab???????Tax Rate?

Up to 3 Lakh?????????????????????????????NIL

Above. 3Lakh-Rs 5Lakh?????????5%of the total income is more than?Rs.3Lakh+4% Cess.

Above Rs. 5Lakh-Rs.10Lakh ?20% of the total income that is more?than Rs. 5Lakh+Rs. 10,500+4% Cess.

Above Rs.10Lakh 30% of the total income that is more than Rs. 10 Lakh+Rs.1,10,000+4% Cess.???

4. INCOME TAX SLAB BETWEEN 60-80YEARS (Super Senior Citizen):-

Income Tax Slab???????????Tax Rate?

Up to Rs.5Lakh ??????????????????????????????????NIL

Above Rs. 5Lakh-Rs.10Lakh ??????????20% of the total Income that is more than Rs. 5Lakh+4% Cess.

Above Rs. 10Lakh ???????????????????????????????30% of the total Income?is more than?

Rs. 10Lakh+Rs.1, 00,000+4% Cess.?

For Domestic Companies, The Tax slab depends?on Turnover as Mentioned Below:-

• The gross turnover maximum of Rs, 250Crore for the Previous Year's Tax rate is 25%.
• Gross Tun Over is More than Rs. 250 Crore?for the previous year, the Tax rate is 30%.

?

• Apart from this the above-mentioned tax rate, an?additional surcharge, and a cess are levied. Given below?are the details of the surcharge and cess that will?be levied:-
• Cess 4% of Corporate Tax.

Surcharge:-

In case the taxable income?is more than Rs. 1 crore?but less than Rs. 10 Crore, the surcharge that will?be levied is 7%.In case the taxable?income is more than?Rs. 10 Crore, the surcharge that will be levied is?12%.

?Non-resident Indians:-For For Non-resident Indians, irrespective of their age, the exemption limit is up to Rs. 2.5Lakh.

In case your net Income is more than rs. 50 Lakh but less than Rs. 1Crore apart from a 4% cess, a 10% surcharge is also levied. If the net is above Rs. 1Crore, a 15% surcharge is levied.

Surcharge Rate Applicable by Income Tax Department for FY(22-23)

If-Range of Income???????????Applicable of Surcharge

Rs.50Lakh to Rs. 1Crore ????????????????????????????????????????10%

Rs. 1 Crore to Rs. 2Crore ???????????????????????????????????????15%

Rs.2Crore to Rs.5 Crore ?????????????????????????????????????????25%

Rs. 5 Crore to Rs. 10Crore ?????????????????????????????????????37%

More than Rs. 10Crore ???????????????????????????????????????????37%??

?NEW TAX SLAB RATES FOR THE DOMESTIC COMPANIES:-

Companies choose?Section 115BAB and registered on or after 1st October 2019 and have commenced manufacturing on or before 31 March 2023:-?????????????????????????????New Regime Tax Rate is 15%.

Companies choose Section115BAA wherein the total Income?of a company has been?calculated where specified?deductions, incentives, exemptions,?and additionaldepreciationshavebeenclaimed:-?????????????????????????

???????????????????????????????????????????????????????????????????????The new regime Tax Rate is 22%.

The company chooses Section115BA registered on or?after 1 March 2016 and is engaged in?the manufacture of any item and no?deductions claim as specified?

in the section clause has been made:-

??????????????????????????????????? The New Regime Tax rate is 25%

If Company Turnover is less than Rs. 400 Crore in the previous year2018-19.????????????????????????

?????????????????????????????????????????????????????????????????????The New Regime Tax rate is 25%.

???????????????????????????????????? The old regime Tax rate is 25%

?

Any other Domestic company The New regime Tax rate is 30%

????????????????????????????? ??The old regime Tax rate is 30%

Who are the Income Tax payers in India?

Out of the 136 Crore people in India, just over 8 crore taxpayers, including individual and corporate, were recorded during the fiscal year 2019-20.

.As per the report of the Income Tax department, there are 8,13,22,263(5%) of the total population have?paid Income Tax during the Assessment year2020-21.

Any Indian?citizen aged below 60 years?is liable to pay Income Tax if their income exceed2.5 Lakhs. If the individual is above 60 years of age and earns?

more than Rs. 3 Lakhs, they will have to pay Tax to the government of India.

Additionally, the following entities?that generate income are?liable to pay direct TAX.

• Individuals less than 60 years of age, Individuals (60-80)years of age of Individuals more than 60 years of age.
• Hindu Undivided Family(HUF)
• Body of Individual(BOI)

?

• Association of persons(AOP)
• Local Authorities
• Corporate firms
• Companies
• All Artificial juridical person
• Details of ITR (Income Tax Return forms) List:-

There are?seven ITR Forms, the details are as follows:-

1. ITR-1:-Individuals (residents) having income from salary, one house property, other sources, agricultural income less than?Rs. 5000 and with a total income of up to Rs. 50 Lakh.

2. ITR-2:-Individuals/HUFs not having any business or profession under any proprietorship.

3. ITR-3:-Individuals /HUFs having income from a?proprietorship business or profession.

4. ITR-4:-Individuals /HUFs having presumptive income from?business or profession

5. ITR-5:-Partnership Firms or LLP

6. ITR-6:-Companies

7. ITR-7:-Trusts.

The Gross collection of Direct Taxes ( before adjusting for refunds) for the FY2022-23 stands at Rs.8,36,225 Crore.?