Income Tax Slab Rates for AY 2022-23

Paying income tax is one of the fundamental duties of every working individual out there. Paying taxes has its benefits. These help you with all types of approvals during loans and visas. In addition, the tax you pay to the government is used for infrastructure development, different welfare schemes, scientific research, defence, etc. This provision of paying tax was introduced in the Income Tax Act, of 1961. This helps the government to generate revenue and serve its citizens for their goods. 

There is another subject that is associated with income tax and it is known as the income tax slab. The income tax slab is the division of different working classes according to which individuals pay their taxes. The whole calculation of income tax is done through an income tax slab rate, where different categories of taxpayers pay different interest rates. These slab rates are subjected to periodic changes and change every financial year. 

This article is a dedication to income tax slabs and the income tax slab rates for the financial year 2022-2023. In this article, you will know about income tax slabs, their advantages, and the tax slab rates for the Assessment Year 2022-2023.

What is an income tax slab and what is its significance? 

The income tax slab is the mere categorisation of different income groups and accordingly, the taxpayers pay their income tax. In simple language, it refers to paying your income tax based on your income amount. The Government of India charges income to these individual categories of taxpayers:

1. Body of Individuals, BOI

2. Hindu Undivided Families, HUF

3. Companies

4. Corporate Firms

5. Local Authorities

6. Associations of Persons, AOPs

Now, it is important to know that the calculation of income tax is done according to the income tax slab rates, different rates are charged to different types of taxpayers and the incomes they generate. There are four tiers under which different taxpayers are categorised and pay their taxes accordingly. 

What are the different tax-paying categories under the Income Tax slabs? 

There are seven different types of taxpayers according to which their income tax slab rates are decided. 

1. For people whose income is up to 2.5 lakhs per annum:

For people whose income is up to 2.5 lakh rupees per annum belong to the first category of taxpayers. However, the Government of India doesn’t charge any tax to this category. 

2. For people whose income ranges between 2.5 lakhs per annum to 5 lakhs per annum:

If your income is between 2.5 lakh rupees per annum to 5 lakh rupees per annum, then you belong to the second category in the income tax slab. Your income tax is calculated according to the income tax slab rate under this category. The income tax slab rate for this category in 2022-23 is 5% of your total income. 

3. For people whose income ranges between 5 lakhs per annum to 7.5 lakhs per annum:

If your income is around 5 lakh rupees per annum to 7.5 lakh rupees per annum, you belong to the third category of income taxpayers. So according to the income tax slab rate that applies to this category, you pay your income tax. The income tax slab rate for this category in 2022-23 is 10% of your total income with an additional charge of 12,500 rupees. 

4. For people whose income ranges between 7.5 lakhs per annum to 10 lakhs per annum:

If your income is around 7.5 lakh rupees per annum to 10 lakh rupees per annum, you belong to the fourth category in the income tax slab. Your income tax is charged based on the income tax slab rate of this category. The income tax slab rate for this category in 2022-23 is 15% of your total income with an additional charge of 37,500 rupees. 

5. For people whose income ranges between 10 lakhs per annum to 12.5 lakhs per annum:

The people whose income ranges between 10 lakh rupees per annum to 12.5 lakh rupees per annum, belong to the fifth category of the income tax slab. The Government charges a specific income tax slab rate to the taxpayers who belong to this category. The income tax slab rate for this category in 2022-23 is 20% of your total income with an additional charge of 75,000 rupees. 

6. For people whose income ranges between 12.5 lakhs per annum to 15 lakhs per annum:

The people whose income ranges between 12.5 lakh rupees per annum to 15 lakh rupees per annum, belong to the sixth category of the income tax slab. They are charged according to the income tax slab rate that applies to this category. The income tax slab rate for this category in 2022-23 is 25% of your total income with an additional charge of 1,25,000 rupees. 

7. For people whose income is more than 15 lakhs per annum:

If your annual income is more than 15 lakhs, you belong to the last category of the income tax slab. The income tax slab rate for this category in 2022-23 is 30% of your total income with an additional charge of 1,87,500 rupees. 

Summing it up:

Income tax slab rates are subjected to changes every year and are released by the Income Tax Department of India. There are seven different categories of taxpayers and likewise, they are advised to pay their income tax. You can go through the list above and choose your category from the income tax slab. 

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