Individual taxpayers must file their Income Tax Returns (ITRs) by July 31, 2022, if they do not have any business income.
Every person whose yearly income exceeds the exemption level is required to pay the tax. The Income Tax (I-T) is levied using a slab system, which implies that the rates vary based on an individual's income. As income rises, the tax rate adjusts.
The I-T slabs are different for taxpayers based on their annual income. Under the tax norms, individual taxpayers are divided into three categories.
-
Individuals below the age of 60 years (both residents and non-residents)
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Resident Senior citizens (within the age group of 60-80 years)
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Resident Senior citizens (above 80 years of age)
According to their age groups, the taxpayers who fall under the senior and super senior citizen categories receive certain advantages.
Taxpayers can choose between the old and new tax regimes to file their ITR for the financial year 2021–2022 (FY22) and assessment year 2022–2023 (AY23).
With fewer deductions and exclusions, the new system promises reduced tax rates, especially for salaried individuals with taxable income below 15 lakh per year.
Income Tax Slabs for Financial Year 2021-22 & Assessment Year 2022-23
|
Income Tax Slab |
Tax Rates (As Per New Regime) |
Tax Rates (As Per Old Regime) |
|
Rs 0 - Rs 25,000 |
Nil |
Nil |
|
Rs 2,50,001 – Rs 5,00,000 |
5% |
5% |
|
Rs 5,00,001 – Rs 7,50,000
|
Rs 12,500 + 10% of total income exceeding Rs 5,00,000
|
Rs 12,500 + 20% of total income exceeding Rs 5,00,000
|
|
Rs 7,50,001 – Rs 10,00,000
|
Rs 37,500 + 15% of total income exceeding Rs 7,50,000
|
Rs 62,500 + 20% of total income exceeding Rs 7,50,000
|
|
Rs 10,00,001 – Rs 12,50,000
|
Rs 75,000 + 20% of total income exceeding Rs 10,00,000 |
Rs 1,12,500 + 30% of total income exceeding Rs 10,00,000 |
|
Rs 12,50,001 – Rs 15,00,000 |
Rs 1,25,000 + 25% of total income exceeding Rs 12,50,000 |
Rs 1,87,500 + 30% of total income exceeding Rs 12,50,000 |
|
Above Rs 15,00,000 |
Rs 1,87,500 + 30% of total income exceeding Rs 15,00,000 |
Rs 2,62,500 + 30% of total income exceeding Rs 15,00,000 |
