India, being a country with a developing economy, has one of the highest taxpayers in the world. The tax that you pay on your income, be it from your job or investments, is used in the development of the country.
If you wish to know more about the different tax slabs and which category you fall under while filing ITR on your income, keep reading.
The following are categories of taxable incomes:
Taxes obtained from this category generally involve your salary, taxable allowances, and any profit you have made from your salary. The pension you receive on retirement is taxed in this category as well. The income obtained from salary and pension is then added to the computation of taxable income.
This tax is generally obtained from the presumptive and actual income that a business or profession makes in a year. The taxes applied are done so after adjustments are made to the deductions from the profits.
People generally invest in properties with the intention of renting them out as an easy way to make extra income. Income tax is levied against you as the property owner, based on the rent amount you receive. Any net income or loss generated under this will be included or removed from the income of the other properties.
The income that you gain from the sale of certain assets like house properties, gold, mutual funds units, stocks, and many more is called capital gain. Based on the type of asset and the duration of your ownership as well as profits made on it, it will then be classified as long-term or short-term capital gain. However, though these gains are also a part of the income tax, they are not added to the taxable amount that will be levied.
The following are the income tax slabs you should know about:
Tax Slab as per new regime for FY 2022-2023, AY 2023-2024 (For individuals)
Up to Rs.2.5 lakhs
Nil
Rs.2.50 - Rs.5 lakhs
5% of the total income exceeding Rs.2.5 lakhs
Rs.5 lakh - Rs.7.50 lakhs
10% of the total income exceeding Rs.5 lakhs, additional charge of Rs.12,500
Rs.7.50 lakh - Rs.10 lakhs
15% of the total income exceeding Rs.7.5 lakhs, additional charge of Rs.37,500
Rs.10 lakh - Rs.12.50 lakhs
20% of the total income exceeding Rs.10 lakhs, additional charge of Rs.75,000
Rs.12.50 - Rs.15 lakhs
25% of the total income exceeding Rs.12.5 lakhs, additional charge of Rs.1,25,000
Above Rs.15 lakhs
30% of the total income exceeding Rs.15 lakh, additional charge of Rs.1,87,500
Tax Slab as per old regime for FY 2022-2023 (For individuals above 60 years of age)
Up to Rs.2.5 lakh
Rs.2.50 lakh - Rs.5.00 lakhs
5% of the total income exceeding Rs.2.5 lakhs with an additional 4% cess
Rs.5 lakh - Rs.10 lakhs
20% of the total income exceeding Rs.5 lakhs, additional charge of Rs.12,500 along with 4% cess
Above Rs.10 lakhs
30% of the total income exceeding Rs.10 lakh, additional charge of Rs.1,12,500 along with 4% cess
Tax Slab for senior citizens (60-80 years old)
Up to Rs.3 lakh
Rs.3.00 lakh - Rs.5.00 lakhs
5% of the total income exceeding Rs.3 lakhs with an additional 4% cess
Rs.5.00 lakh - Rs.10 lakhs
20% of the total income exceeding Rs.5 lakhs, additional charge of Rs.10,500 along with 4% cess
30% of the total income exceeding Rs.10 lakhs, additional charge of Rs.1,10,000 along with 4% cess
Tax Slab for super senior citizens (Above 80 years of age)
Up to Rs.5 lakh
20% of the total income exceeding Rs.5 lakhs with an additional 4% cess
30% of the total income exceeding Rs.10 lakh, additional charge of Rs.1,00,000 along with 4% cess
If your income exceeds the income tax slabs, the income tax department will apply surcharge rates on it. Listed below are the rates which you should keep in mind when filing your advance tax:
Rs.50 lakhs to Rs.1 crore
10%
Rs.1 crore to Rs.2 crore
15%
Rs.2 crore to Rs.5 crore
25%
Rs.5 crore to Rs.10 crore
37%
More than Rs.10 crore
For AY 2023-2024
These are the different income tax slabs and additional surcharge rates that you as a taxpayer should be aware of. If you wish to get an idea about the tax that could be applied on your income, you can use the income tax calculator.
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