Rates of Income Tax in India
As per the Finance Act, 2022, the rates of income tax, surcharge and health & education cess for the FY 2022-23 (i.e. Assessment Year 2023-24) are as follows:
A. Rates of Income Tax:
Here we are talking about individual category being a resident of India and for old regime tax rates (New regime has been inserted vide section 115BAC of Income Tax Act 1961 by Finance Act, 2020 w.e.f. AY 2021-22). As per the income tax rules, there are three categories where rates of income tax are applicable as per the age of tax payer:
- Tax payer of below 60 years
- Tax payer of 60 to 79 years
- Tax payer of 80 years and above
Below 60 years
| S.No | Total Income (In Rupees) | Rate of Tax | Amount of Tax |
| 1 | Upto 2,50,000 | Nil | Zero |
| 2 | 2,50,001 to 5,00,000 | 5% | 5% of the amount exceed Rs. 2,50,000 |
| 3 | 5,00,001 to 10,00,000 | 20% | 12,500 + 20% of the amount exceed Rs. 5,00,000 |
| 4 | Above 10,00,000 | 30% | 1,12,500 + 30% of the amount exceed Rs. 10,00,000 |
60 to 79 years
| S.No | Total Income (In Rupees) | Rate of Tax | Amount of Tax |
| 1 | Upto 3,00,000 | Nil | Zero |
| 2 | 3,00,001 to 5,00,000 | 5% | 5% of the amount exceed Rs. 3,00,000 |
| 3 | 5,00,001 to 10,00,000 | 20% | 10,000 + 20% of the amount exceed Rs. 5,00,000 |
| 4 | Above 10,00,000 | 30% | 1,10,000 + 30% of the amount exceed Rs. 10,00,000 |
80 years and above
| S.No | Total Income (In Rupees) | Rate of Tax | Amount of Tax |
| 1 | Upto 5,00,000 | Nil | Zero |
| 2 | 5,00,001 to 10,00,000 | 20% | 20% of the amount exceed Rs. 5,00,000 |
| 3 | Above 10,00,000 | 30% | 1,00,000 + 30% of the amount exceed Rs. 10,00,000 |
B. Surcharge on Income Tax:
Here surcharge is divided into two categories:
- Excluding the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act.
- Including the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act
| Total Income (In Rupees) | Category | Rate of Surcharge | Category | Rate of Surcharge |
| Upto 50,00,000 | Not Applicable | Nil | Not Applicable | Nil |
| 50,00,001 to 1,00,00,000 | Including | 10% of Income Tax | Not Applicable | Not Applicable |
| 1,00,00,001 to 2,00,00,000 | Including | 15% of Income Tax | Not Applicable | Not Applicable |
| 2,00,00,001 to 5,00,00,000 | Excluding | 25% of Income Tax | Including | 15% of Income Tax |
| Above 5,00,00,000 | Excluding | 35% of Income Tax | Including | 15% of Income Tax |
C. Health & Education Cess:
| Basis | Rate of Cess |
| Income Tax plus Surcharge (a) | 4% of (a) |
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