Applicable Tax Rates for Financial Year 2022-23 are as follows:
| Tax Slab as per New Regime | Tax Rate |
| Upto INR 2.5 lakhs | Exempt |
| INR 2.5 lakhs – INR 5 lakhs | 5% |
| INR 5 lakhs – INR 7.5 lakhs | 10% |
| INR 7.5 lakhs – INR 10 lakhs | 15% |
| INR 10 lakhs – INR 12.5 lakhs | 20% |
| INR 12.5 lakhs – INR 15 lakhs | 25% |
| Above INR 15 lakhs | 30% |
| Tax Slab as per Old Regime | Tax Rate |
| Upto INR 2.5 lakhs | Exempt |
| INR 2.5 lakhs – INR 5 lakhs | 5% |
| INR 5 lakhs – INR 7.5 lakhs | 20% |
| INR 7.5 lakhs – INR 10 lakhs | 30% |
No Tax on individual having taxable income up to Rs.5,00,000 as a result of rebate of Rs. 12,500 u/s 87A under both old and new scheme.
The new scheme is optional and is applicable if the individual agree to forego prescribed deductions and exemptions under the Income Tax Act.
Corporate Tax
Basic tax rates for companies are as under :-
| Particulars | Proposed Tax rates |
| For domestic companies whose total turnover or gross receipts in the FY 2017-18 does not exceed Rs. 400 Crores | 25% |
| For companies opting for Section 115BA | 25% |
| For companies opting for Section 115BAA | 22% |
| For companies opting for Section 115BAB | 15% |
| For other domestic Companies | 30% |
| MAT | 15% |
| Foreign Companies | 40% |
- For companies opting for Section 115BA/115BAA/115BAB Surcharge of 10% would be levied irrespective of the income
Firms and LLP
- Basic tax rate remains at 30%
Surcharge of Income Tax
- Surcharge for domestic and foreign companies are as under :
| Particulars | Domestic Company | Foreign Company |
| Income exceeding Rs. 1 crore but not exceeding Rs. 10 Crore | 7% | 2% |
| Income exceeding Rs. 10 crore | 12% | 5% |
- Surcharge for Individuals, HUF, AOP, BOI and AJP are as under :-
| Particulars | Proposed Rate |
| Income exceeding Rs. 50 Lakh but not exceeding Rs. 1 Crore | 10% |
| Income exceeding Rs. 1 Crore but not exceeding Rs. 2 Crore | 15% |
| Income exceeding Rs. 2 Crore but not exceeding Rs. 5 Crore | 25% |
| Income exceeding Rs. 5 Crore | 37% |
- Surcharge for firms & LLP is 12% on the total income exceeding Rs. 1 Crore The enhanced surcharge of 25% & 37% is not applicable on dividend income and Capital gains made on sale of listed equity shares, units of equity mutual fund and units of business trust
Cess
- The health & Education cess in all cases remains unchanged at 4%
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DISCLAIMER
This document has been prepared in summary form by DPNC Global LLP from Finance Act 2021 and Explanatory Memorandum. While the information is believed to be accurate to the best of our knowledge, we do not make any representations or warranties, express or implied, as to the accuracy or completeness of such information. Reader should conduct and rely upon their own examination, investigation and analysis and are advised to seek their own professional advice. The information and data contained herein is not a substitute for the reader independent evaluation and analysis. We accept no responsibility for any errors it may contain, whether caused by negligence or otherwise or for any loss, howsoever caused or sustained, by the person who relies on it.