Income tax Calculation above 5 Lakh for FY 2022-23 

A look into the income tax calculation for the FY 2022-23 for income earned above 5 lakhs as per the New Tax Regime, and how it is better over the Old Tax Regime.

What is Income Tax?

As the name inevitably suggests, income tax refers to the specific tax that is computed on your total taxable income according to the specific tax slab that it falls under. When you add your income earned from various sources, such as rent, annual salary, capital gains, and the like, you derive your gross total income.

What is an Income Tax Calculator?

It is a simple, fast and convenient-to-use online tool that helps you calculate the total amount of tax that you need to pay in seconds!

Step 1: Choose your age from the age range given

Step 2: Enter your income earned per annum

Step 3: Enter all your investments made as well as the various deductions you are eligible for under different sections of the Income Tax Act, such as –

– Section 24B (Interest payable on repayment      of home loan)

– Section 80G (donations made as charity)

– Section 80C (investments made in PPF, ELSS      funds, and the like)

– Section 80E (Interest payable on repayment     of educational loan)

– Section 80CCD(1B) [earnings under the     National Pension System)

Step 4: Enter the various tax exemptions that you are eligible for under HRA, LTA, and the like

Income Tax Slab for 5 LPA Salary for FY 2022-23 Under New Tax Regime

Now let us look at the tax slab under which the income tax above 5 Lakh of a salaried person falls under:

Up to Rs. 2.5 Lac - None

Rs. 2.5 Lac – Rs. 5 Lac - 5% of income over Rs. 2,50,000 + 4% surcharge

Rs. 5 Lac – Rs. 7.5 Lac - Rs. 12,500 + 10% total income earned over Rs. 5,00,000 + 4% surcharge

Rs. 7.5 Lac – Rs. 10 Lac -Rs. 37,500 + 15% total income earned over Rs. 7,50,000 + 4% surcharge

Rs. 10 Lac– Rs. 12.5 Lac - Rs. 75,000 + 20% total income earned over Rs. 10,00,000 + 4% surcharge

Rs. 12.5 Lac– Rs. 15 Lac - Rs. 75,000 + 20% total income earned over Rs. 10,00,000 + 4% surcharge

Over Rs. 15,00,000 - Rs. 1,87,500 + 30% of the total income earned over Rs. 15,00,000 + 4% surcharge

Income Tax Exemptions for Salaried Employees 2021-22

Under the New Tax Regime, the tax rates calculated for all the categories of individuals, such as salaried individuals below 60 years old, senior citizens over 60, as well as super senior citizens above 80, is the same.

1. Conveyance allowance incurred on travel to      work

2. Transport allowance for specially-abled      people is deducted

3. Deductions for new employees under Section      80JJAA

4. Investment made in the Notified Pension      Scheme (NPS) deducted under Section      80CCD (2)

5. Under Section 32, depreciation of assets, such      as machinery, not including the extra      depreciation expenses incurred by the      employee traveling for work reasons or being      transferred, is considered for deduction

Need Detailed Information?

Let’s Connect