Old Tax Regime: Income Tax Slabs and Rates for FY 2022-23

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4 min read

Updated on Nov 13, 2022

Delving deeper into the old and new tax regimes for the Indian taxpayer, the income tax slabs under both the regimes, and the rates for the FY 2022-23.

We pay taxes to avail the essential amenities that our country provides for our benefits. The tax money collected by the Indian government is put to use to serve us better. In India, the general norm is that the Union Finance Minister declares the income tax slabs under which the Indian tax-paying individuals would be required to pay taxes for that particular financial year. These slabs are announced as part of the Union Budget presented in Feb-March every year. There are two types of income tax regimes currently followed in the country – the old tax regime and the new tax regime. Here we discuss in detail both the old tax regime slabs and the new ones to help you better understand which ones you fall under while completing your tax-paying duties.

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Meaning of Income Tax Slab

Before we move on to discussing the two different types of tax regimes and their key differences, let us briefly understand what an income tax slab is.

As is evident from the term, income tax slab refers to a particular slab or bar under which every tax-paying individual in the country falls based on their annual income. This means that those who have a higher annual income would fall under a different tax slab than others earning relatively lesser, and the former would also need to pay higher taxes.

The whole idea of introducing different income income tax slabs in India was to maintain fairness across the country and its tax-paying citizens. People should ideally need to pay exactly the amount of tax as the income that they earn in a year. Also, these tax slabs keep changing every financial year when the Finance Minister introduces the budget.

Income Tax Slabs: Old Regime

As mentioned above, with new income tax slabs being announced every year, there are currently two different types of slab systems in the country – the old income tax slabs and the new tax regime slabs. The old tax regime refers to the income tax slabs announced for the financial year 2022-23 while the new tax regime also includes tax slabs declared for the AY 2023-24 along with the revised income tax slabs for FY 2022-23.

Here we list out the income tax slabs for three different categories of tax-payers – those aged below 60 years, those between 60 and 80 years of age, and those aged above 80 years.

Income Tax Slabs Old Regime for <60 Years

Income Tax Slab Rate of Income Tax Payable
Up to Rs. 2,50,000 N/A
Between Rs. 2,50,000 and Rs. 5,00,000 5% of the annual income, if it is over Rs. 2,50,000 + 4% cess (surcharge)
Between Rs. 5,00,000 and Rs. 10,00,000 20% of the annual income, if it is over Rs. 5,00,000 + Rs. 12,500 + 4% cess
Over Rs. 10,00,000 30% of the annual income, if it is over Rs. 10,00,000 + Rs. 1,12,500 + 4% cess

Old Tax Slabs in India for Senior Citizens Aged Between 60 and 80 Years

Income Tax Slab Rate of Tax Payable on the Annual Income
Up to Rs. 3,00,000 N/A
Between Rs. 3,00,000 and Rs. 5,00,000 5% of the annual income if more than Rs. 3,00,000 + 4% surcharge
Between Rs. 5,00,000 and Rs. 10,00,000 20% of the annual income if more than Rs. 5,00,000 + Rs. 10,500 + 4% surcharge
Over Rs. 10,00,000 30% of the annual income if more than Rs. 10,00,000 + Rs. 1,10,000 + 4% surcharge

Income Tax Slab for Super Senior Citizens Over 80 Years Old

Income Tax Slab Rate of Tax Payable on the Annual Income
Up to Rs. 5,00,000 N/A
Between Rs. 5,00,000 and Rs. 10,00,000 20% of the annual income if more than Rs. 5,00,000 + 4% surcharge
Over Rs. 10,00,000 30% of the annual income if more than Rs. 10,00,000 + Rs. 1,00,000 + 4% surcharge

Income Tax Slabs: New Regime

After looking at the income tax slabs for the existing old regime in the sections above, let us now look at the slabs announced in the new regime, i.e., for FY 2022-23 (AY 2023-24).

Income Tax Slab Rate of Tax Payable
Up to Rs. 2,50,000 N/A
Between Rs. 2,50,000 and Rs. 5,00,000 5% of the annual income which is >Rs. 2,50,000
Between Rs. 5,00,000 and Rs. 7,50,000 10% of the annual income which is >Rs. 5,00,000 + Rs. 12,500
Between Rs. 7,50,000 and Rs. 10,00,000 15% of the annual income which is >Rs. 7,50,000 + Rs. 37,500
Between Rs. 10,00,000 and Rs. 12,50,000 20% of the annual income which is >Rs. 10,00,000 + Rs. 75,000
Between Rs. 12,50,000 and Rs. 15,00,000 25% of the annual income which is >Rs. 12,50,000 + Rs. 1,25,000
More than Rs. 15,00,000 30% of the annual income which is >Rs. 15,00,000 + Rs. 1,87,500

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Note: The new income tax slabs are optional, meaning the tax-payer can choose to continue paying taxes as per the old regime or opt for the new regime.

Read More: Advance Tax Payment: A Comprehensive Guide For You

Wrapping it Up

The blog details the income tax slabs for two different types of tax regimes – old and new. We hope this information guides you through the tax rates applicable for the different income slabs that you may fall under. Based on your total annual income, you can understand which income tax bracket you’d be liable to pay under. However, it needs to be noted that the new income tax slabs are optional. For more information on the income tax slabs and rates for the FY 2022-23 and AY 2023-24, visit PayBima.

Found this post informational? Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance and Investment section. You can visit PayBima to Buy Insurance Online.

 

 

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