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Everything You Need to Know About the Income Tax Slab Rate for FY 2022-23

Everything You Need to Know About the Income Tax Slab Rate for FY 2022-23

The income tax slab rate for the financial year (FY) 2022-23 has been announced by the government and is effective from 1st April 2022. The new income tax slab rates are applicable for both individuals and Hindu Undivided Families (HUFs). The new income tax rates are as follows:

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Income Tax Slab for Individuals (Below 60 Years of Age).

Income Tax Slab Income Tax Rate:

Up to Rs. 2.5 lakh Nil

Rs. 2.5 lakh to Rs. 5 lakh 5%

Rs. 5 lakh to Rs. 7.5 lakh 10%

Rs. 7.5 lakh to Rs. 10 lakh 15%

Above Rs. 10 lakh 20%

Income Tax Slab for Individuals (Above 60 Years of Age but below 80 years).

Income Tax Slab Income Tax Rate.

Up to Rs. 3 lakh Nil

Rs. 3 lakh to Rs. 5 lakh 5%

Rs. 5 lakh to Rs. 7.5 lakh 10%

Rs. 7.5 lakh to Rs. 10 lakh 15%

Above Rs. 10 lakh 20%

Income Tax Slab for Individuals (Above 80 years of age).

Income Tax Slab Income Tax Rate.

Up to Rs. 5 lakh Nil

Rs. 5 lakh to Rs. 7.5 lakh 10%

Rs. 7.5 lakh to Rs. 10 lakh 15%

Above Rs. 10 lakh 20%

Income Tax Slab for Hindu Undivided Families (HUFs).

Income Tax Slab Income Tax Rate.

Up to Rs. 2.5 lakh Nil

Rs. 2.5 lakh to Rs. 5 lakh 5%

Rs. 5 lakh to Rs. 7.5 lakh 10%

Rs. 7.5 lakh to Rs. 10 lakh 15%

Above Rs. 10 lakh 20%

Surcharge on Income Tax:

For Individuals with income between Rs. 50 lakh to Rs. 1 crore, the surcharge levied will be 10% of the income tax.

For Individuals with income above Rs. 1 crore, the surcharge levied will be 15% of the income tax.

For HUFs with income between Rs. 50 lakh to Rs. 1 crore, the surcharge levied will be 10% of the income tax.

For HUFs with income above Rs. 1 crore, the surcharge levied will be 15% of the income tax.

Cess on Income Tax:

A cess of 4% will be levied on the tax payable, plus a surcharge (if any).

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Now that you know the income tax slab rate for FY 2022-23, let’s take a look at some of the other changes that have been announced by the finance minister.

The standard deduction for FY 2022-23 has been increased from Rs. 40,000 to Rs. 50,000.

The deduction for health insurance premiums has been increased from Rs. 25,000 to Rs. 30,000.

The deduction for interest on education loans has been increased from Rs. 1.5 lakh to Rs. 2 lakh.

The deduction for housing loan interest has been increased from Rs. 2 lakh to Rs. 2.5 lakh.

The deduction for investment in ELSS has been increased from Rs. 1.5 lakh to Rs. 2 lakh.

The deduction for investment in NPS has been increased from Rs. 1.5 lakh to Rs. 2 lakh.

The maximum deduction that can be claimed under Section 80C has been increased from Rs. 1.5 lakh to Rs. 2 lakh.

The deduction for interest on deposits in a savings account has been increased from Rs. 10,000 to Rs. 15,000.

The deduction for rent paid has been increased from Rs. 2 lakh to Rs. 2.5 lakh.

The deduction for medical expenditure has been increased from Rs. 25,000 to Rs. 30,000.

These are some of the changes that have been announced by the finance minister for FY 2022-23.

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