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

The Income Tax Slabs for FY 2022-23 (AY 2023-24) help taxpayers understand the applicable tax rates under both the old and new tax regimes, based on their annual income levels.
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3 min
18-March-2025

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.

New 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:

  1. The new tax regime does not offer exemptions such as HRA, LTA, Section 80C deductions, or standard deductions.
  2. A rebate under Section 87A is available for income up to Rs. 5 lakh, making the tax liability zero for such taxpayers.
  3. 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 slabs in FY 2022-23 (AY 2023-24) for senior citizens

Senior citizens aged between 60 to 80 years enjoy higher income tax exemption limits. Here’s a look at the income tax slabs applicable to them under both the old and new tax regimes for FY 2022-23.

Income Range (Rs. )

Old Tax Regime (60–80 yrs)

New Tax Regime (All ages)

Up to Rs. 2.5 lakh

Nil

Nil

Rs. 2,50,001 – Rs. 3,00,000

Nil

5%

Rs. 3,00,001 – Rs. 5 lakh

5%

5%

Rs. 5,00,001 – Rs. 7.5 lakh

20%

10%

Rs. 7,50,001 – Rs. 10 lakh

20%

15%

Rs. 10,00,001 – Rs. 12.5 lakh

30%

20%

Rs. 12,50,001 – Rs. 15 lakh

30%

25%

Above Rs. 15 lakh

30%

30%


Key notes:

  • Under the old regime, senior citizens get a higher basic exemption limit of Rs. 3 lakh.
  • Under the new regime, the basic exemption limit is Rs. 2.5 lakh, and no age-based benefits apply.
  • Both regimes allow a tax rebate under Section 87A for taxable income up to Rs. 5 lakh.
  • Deductions like 80C, 80D, HRA, etc., are available only under the old regime.

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

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.

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:

  1.  Low-income earners (up to Rs. 5 lakh): No tax due to the rebate under Section 87A.
  2. Middle-income earners (Rs. 5-10 lakh): May benefit if they have few exemptions.
  3. High-income earners (above Rs. 10 lakh): The old regime may be preferable if they claim significant deductions like 80C (including term insurance premiums), 80D, and home loan interest (Section 24(b)).

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

Taxpayers opting for the new regime cannot claim deductions under Section 80C, which includes premiums paid for life Insurance plans. This may be a crucial factor to consider while making a decision.

  • 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.

Surcharge rates based on income for individuals, HUFs & artificial juridical persons (FY 2022–23)

Total Income Range (Rs. )

Surcharge rate

Applicable conditions

Exceeds Rs. 50 lakh but up to Rs. 1 crore

10%

On the amount of income tax

Exceeds Rs. 1 crore but up to Rs. 2 crore

15%

On the amount of income tax

Exceeds Rs. 2 crore but up to Rs. 5 crore

25%

On the amount of income tax, excluding income under Sections 111A, 112, and 112A

Exceeds Rs. 5 crore

37%

On the amount of income tax, excluding income under Sections 111A, 112, and 112A

Income under Sections 111A, 112, 112A exceeds Rs. 2 crore

15%

Surcharge on income from short-term capital gains (STCG), long-term capital gains (LTCG), and equity-based gains


Note:

The surcharge is levied on the amount of income tax, not on the total income. However, the effective tax rate increases due to surcharge and applicable cess. In case the income includes dividend or capital gains under Sections 111A, 112, or 112A, the surcharge on that portion is capped at 15%, even if the total income is higher. This capping benefits taxpayers with substantial capital gains. Additionally, marginal relief is provided to ensure that the additional tax payable (due to surcharge) does not exceed the excess income over the surcharge threshold.

Surcharge rates based on income for AOP or BOI (FY 2022–23)

Type of assessee

Total income range (Rs. )

Surcharge rate

Applicable conditions

AOP (consisting of companies as members)

Up to Rs. 2 crore

Nil

No surcharge applicable

Exceeds Rs. 2 crore but up to Rs. 5 crore

15%

On the income tax amount

Exceeds Rs. 5 crore

25%

On the income tax amount

AOP/BOI (non-corporate members)

Exceeds Rs. 50 lakh up to Rs. 1 crore

10%

On the income tax amount

Exceeds Rs. 1 crore up to Rs. 2 crore

15%

On the income tax amount

Exceeds Rs. 2 crore up to Rs. 5 crore

25%

Surcharge on income tax excluding STCG/LTCG under Sections 111A, 112, 112A

Exceeds Rs. 5 crore

37%

Surcharge on income tax excluding STCG/LTCG under Sections 111A, 112, 112A

 


Note:

Surcharge on AOPs and BOIs is calculated similarly to individuals, but the applicable rates differ based on the composition of the entity. If the AOP comprises only companies, a flat 15–25% surcharge is applicable beyond ₹2 crore. For AOPs/BOIs with non-corporate members, surcharge rates increase progressively. A cap of 15% applies on certain capital gains, and marginal relief ensures that the tax increase does not surpass the income threshold gap. These provisions aim to balance tax liability while preventing abrupt jumps in tax outflow due to small increases in income.

Who should opt for the new regime?

Choosing between the old and new tax regimes depends on your income structure and exemption preferences. Here are quick pointers to help salaried individuals decide if the new tax regime suits their financial planning needs.

  • Salaried individuals with no major exemptions like HRA, LTA, or 80C deductions.
  • Taxpayers who do not wish to maintain detailed records of investments and deductions.
  • Individuals looking for a hassle-free, lower-rate tax structure.
  • Young professionals or freelancers with straightforward income and minimal deductions.
  • People with high gross income but limited investments in tax-saving instruments.

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.

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Frequently asked questions

Is income tax rebate u/s 87A available on Long Term Capital Gains (LTCG)?
No, the rebate under Section 87A is not available on Long Term Capital Gains (LTCG). This rebate applies only to total taxable income, excluding LTCG taxable at special rates. If your total income (excluding LTCG) is up to Rs. 5 lakh, you can claim the rebate to reduce tax liability.

How to claim rebate u/s 87A while filing my ITR with ClearTax?
To claim the rebate under Section 87A, log in to ClearTax and enter your total taxable income. Ensure it is Rs. 5 lakh or below (excluding LTCG). The system will automatically apply the rebate and adjust your tax liability to zero. Verify calculations before submission to avoid errors.

What is the standard deduction for FY 2022-23?
For FY 2022-23 (AY 2023-24), the standard deduction for salaried individuals and pensioners is Rs. 50,000 under the old tax regime. This deduction is available without requiring specific expenses. However, the new tax regime does not offer a standard deduction, so taxpayers must evaluate which regime benefits them more before filing returns.

What is the exemption limit for income tax 2022/23?
For FY 2022-23, the basic exemption limit under the old tax regime is Rs. 2.5 lakh for individuals below 60, Rs. 3 lakh for senior citizens (60-79 years), and Rs. 5 lakh for super senior citizens (80+ years). Under the new tax regime, the exemption limit is Rs. 2.5 lakh for all individuals.

What are the income tax slabs applicable for FY 2022–23?

For FY 2022–23, individuals can choose between the old and new tax regimes. The old regime offers deductions and exemptions, while the new regime provides lower tax rates without deductions. Tax slabs differ based on age, income level, and regime chosen.

Is income up to Rs. 7 lakh completely tax-free?

Under the new regime for FY 2022–23, income up to Rs. 7 lakh is effectively tax-free due to the rebate under Section 87A. However, this benefit is not available in the old regime where tax liability depends on applied deductions.

What is the standard deduction allowed in FY 2022–23?

A standard deduction of Rs. 50,000 is available to salaried individuals and pensioners in both the old and new tax regimes for FY 2022–23. This deduction reduces the taxable income and helps lower the overall tax liability.

How much tax is payable on income of Rs. 7.5 lakh?

If you opt for the old regime and use deductions, your tax can be reduced. Under the new regime, after rebate, tax on Rs. 7.5 lakh income would be around Rs. 26,000 excluding cess. Final liability depends on available deductions and chosen regime.

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