Income Tax Slabs and Rates for FY 2022-23 (AY 2022-23)

Income tax is a crucial part of financial planning for individuals and businesses in India. The tax structure in India is divided into different slabs, which determine the tax rate applicable to different income groups. The government revises these slabs periodically to align with economic conditions and taxpayer needs.

For FY 2022-23 (AY 2023-24), taxpayers have the option to choose between the old tax regime and the new tax regime introduced in Budget 2020. The old regime allows multiple exemptions and deductions, while the new regime offers lower tax rates but eliminates most exemptions. Understanding these slabs is essential for effective tax planning and compliance.

The following sections provide a detailed breakdown of income tax slabs for individuals, Hindu Undivided Families (HUFs), senior citizens, and super senior citizens. It also covers the tax implications of the new regime and the deductions unavailable under it. This guide aims to simplify income tax calculations for Indian taxpayers.

Latest income tax slabs for FY 2022-23 after Budget 2022

The income tax slabs for FY 2022-23 remain unchanged from the previous year. Taxpayers can opt for either the old regime or the new regime. Below are the tax slabs under the new regime:

Income tax slabs for individuals and HUFs under the new tax regime:

Income up to Rs. 2,50,000 – Nil

Rs. 2,50,001 to Rs. 5,00,000 – 5%

Rs. 5,00,001 to Rs. 7,50,000 – 10%

Rs. 7,50,001 to Rs. 10,00,000 – 15%

Rs. 10,00,001 to Rs. 12,50,000 – 20%

Rs. 12,50,001 to Rs. 15,00,000 – 25%

Income above Rs. 15,00,000 – 30%

Some key points to note:

The new tax regime does not offer exemptions such as HRA, LTA, Section 80C deductions, or standard deductions.

A rebate under Section 87A is available for income up to Rs. 5 lakh, making the tax liability zero for such taxpayers.

The old tax regime remains an option for taxpayers preferring deductions and exemptions.

Income tax slabs in FY 2022-23 (AY 2023-24) for HUF and individuals

The following table outlines the income tax slabs applicable for individuals below 60 years and Hindu Undivided Families (HUFs) under both tax regimes:

Income Slab (Rs.)	Old Tax Regime	New Tax Regime
Up to 2,50,000	Nil	Nil
2,50,001 - 5,00,000	5%	5%
5,00,001 - 7,50,000	20%	10%
7,50,001 - 10,00,000	20%	15%
10,00,001 - 12,50,000	30%	20%
12,50,001 - 15,00,000	30%	25%
Above 15,00,000	30%	30%

Note: The new tax regime offers lower tax rates but removes deductions like 80C, 80D, HRA, LTA, and home loan interest benefits.

Income tax slab for super senior citizens in AY 2022-23 (FY 2023-24)

Super senior citizens (aged 80 and above) enjoy higher exemption limits under the old regime. The following table outlines their tax slabs:

Income Slab (Rs.)	Tax Rate (Old Regime)	Tax Rate (New Regime)
Up to 5,00,000	Nil	Nil
5,00,001 - 10,00,000	20%	10%
10,00,001 - 15,00,000	30%	20%
Above 15,00,000	30%	30%

Key takeaway:

Super senior citizens benefit from a Rs. 5 lakh exemption limit under the old regime.

The new tax regime does not provide any additional exemption for senior or super senior citizens.

Income tax slabs & rates for senior citizens in AY 2022-23 (FY 2023-24)

For senior citizens (aged 60-79 years), the exemption limit is Rs. 3 lakh under the old regime. Here’s how the tax slabs apply:

Income Slab (Rs.)	Tax Rate (Old Regime)	Tax Rate (New Regime)
Up to 3,00,000	Nil	Nil
3,00,001 - 5,00,000	5%	5%
5,00,001 - 10,00,000	20%	10%
10,00,001 - 15,00,000	30%	20%
Above 15,00,000	30%	30%

Important points:

Senior citizens can avail a Rs. 50,000 deduction on interest from fixed deposits under Section 80TTB.

The new tax regime does not provide any extra benefits to senior citizens.

Understanding income tax scenarios in the new regime - FY 2022-23 (AY 2023-24)

The new tax regime simplifies taxation by removing most deductions and offering lower tax rates. However, it may not be beneficial for all taxpayers. Here are a few key tax scenarios under the new regime:

Low-income earners (up to Rs. 5 lakh): No tax due to the rebate under Section 87A.

Middle-income earners (Rs. 5-10 lakh): May benefit if they have few exemptions.

High-income earners (above Rs. 10 lakh): The old regime may be preferable if they claim significant deductions like 80C, 80D, and home loan interest (Section 24(b)).

What are the exemptions/deductions unavailable under the new tax regime in FY 22-23?

Taxpayers opting for the new regime cannot claim the following deductions:

Section 80C (PPF, EPF, LIC, ELSS, etc.)

Section 80D (Health insurance premium)

Section 80E (Education loan interest)

House Rent Allowance (HRA)

Leave Travel Allowance (LTA)

Standard deduction of Rs. 50,000

Home loan interest deduction (Section 24(b))

Who should opt for the new regime?

Salaried individuals with no major exemptions.

Individuals who prefer a simplified tax structure with lower rates.

Conclusion

Choosing between the old and new tax regimes depends on an individual’s financial situation. The old regime benefits those who maximise deductions, while the new regime is ideal for those who prefer lower rates with minimal documentation. Taxpayers should evaluate their income, deductions, and financial goals before making a decision. Understanding these slabs and exemptions will help individuals plan their taxes effectively and optimise their savings.