Rates of old and new tax regimes for A.Y 2022-23, Comparison of rates of old and new tax systems for A.Y 2022-23
The new income tax slab rates introduced in Budget 2020 after AY 2021-22 are reserved for taxpayers, where they are free to choose from the old regime's tax slab (F.Y 2021-22). The new tax slab has been made common for taxpayers of all ages to reduce the income tax rate to Rs 15,00,000. But, it denies 70 tax exemptions and deductions that are available as relief with the old regime tax rates.
The new tax system and the old tax system have the following income tax rates: -
| Income tax rate slabs (Rs) | Old Regime | New Regime | Surcharge |
| Up to 2.50 lakh | nil | nil | Nil |
| 2.50 lakh to 5.00 lakh | 5% | 5% | Nil |
| 5.00 lakh to 7.50 lakh | 20% | 10% | Nil |
| 7.50 lakh to 10.00 lakh | 20% | 15% | Nil |
| 10.00 lakh to 12.50 lakh | 30% | 20% | Nil |
| 12.50 lakh to 15.00 lakh | 30% | 25% | Nil |
| 15.00 lakh to 50.00 lakh | 30% | 30% | Nil |
| 50.00 lakh to 1.00 Cr | 30% | 30% | 10% |
| 1.00 Cr to 2.00 Cr | 30% | 30% | 15% |
| 2.00 Cr to 5.00 Cr | 30% | 30% | 25% |
| 5.00 Cr & above | 30% | 30% | 37% |
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4% Health and Education Benefit is applicable on all the above taxes
Money discount 12,500 u / s 87A is applicable for the tax slab of both old and new regimes, Rs. 5.00 lakhs.
Below additional surcharges are imposed on the very rich with the following income:
To show how the new tax slab rates can reduce your tax liability, we present the comparative study below, if you are prepared to avoid the authorized deductions of the old tax system:
When choosing a new tax slab: -
Option to use ITR for F.Y 2021-2022 (A.Y 2022-2023) on or before 31st July 2022
Business people / HUFs who do not have business income can choose between old and new rule tax slabs every year.
Business Those who have a business income, they get a chance to choose their options. Once done, they have to follow the rules every year unless they stop this source of income.
Note: - General tax deduction for salaried taxpayers approved at the old tax slab rate (removed to the new tax system)
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The new tax slab denies 70 tax exemptions and deductions, e.g.
Travel Discount, tax-free once claimed in two-year block
Standard Deduction 50000 / -
• Depending on the house rent allowance (HRA), salary structure and payment of rent
Housing interest on the loan (Section 24) Rs 3.5 lakh for affordable housing, Rs 2 lakh for others
CC 80CCD (2) Reducing employer contribution to NPS of RS 50000 / -
Chapter VI-A 80C, 80CCC, 80CCD, RS 150,000 / -
80D, RS 25000 / - (Rs. 50,000 for parents and senior citizens)
80 TTA reduction (Savings Bank interest: Rs. 10,000)
• 80 TTB Interest Income (for Senior Citizens): Rs. 50,000
• 80 E deduction (pay interest for eight consecutive years)
80 DD deduction: (Rs. 75,000 to Rs. 1.25 lakhs depending on disability)
80 DDB discount: Rs. 40,000 (Rs. 1 lakh for senior citizens)
80EE, 80EEA, 80EEB,
80G (50-100%) reduction of donated money
80GG, 80GGA, 80GGC, 80IA, 80IAB, 80IAC, 80IB, 80IBA,
MPs / MLAs, and other allowances that used the tax slab of the old regime.
New Section 80JJAA approved for new employees.
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We offer simple schemes so that you can switch between old and new tax slab rates when you want to invest for a tax deduction:
1. Taxpayers earn up to Rs. 5 lakhs, fall under the exemption of INR 12,500 available under Section 87A and have zero tax liability. So, they are not coming under any available tax exemption.
2. For income up to Rs. 7.5 lakhs, if your investment amount of INR 1,25,000 or more is eligible for a tax deduction, opt for the old tax regime. But, if your investment is less than that, go for a new tax regime.
| Particulars | Old Regime (In INR) | New Regime (In INR) |
| Taxable Income | 7,50,000 | 7,50,000 |
| Less Deduction Amount | (1,25,000) | - |
| Taxable Amount | 6,25,000 | 7,50,000 |
| Tax Calculation | (@20%) 37,500 | (@10%)37,500 |
Note: The calculation is shown by subtracting the amount of CESS.
| Particulars | Old Regime (In INR) | New Regime (In INR) |
| Taxable Income | 10,00,000 | 10,00,000 |
| Less Deduction Amount | (1,87,500) | - |
| Taxable Amount | 8,12,500 | 10,00,000 |
| Tax Calculation | (@20%) 75,000 | (@15%) 75,000 |
3. If your income is up to Rs. 10 lacks, or if your investment amount of Rs.1,87,500 or large is entitled to a tax exemption, choose Old Tax Regime. But, if your investment is less than that, go for a new tax regime.
Note: The calculation is shown by subtracting the CESS amount.
4. For an income of Rs. 12.5 lakhs, if your investment amount is eligible for a tax deduction of Rs. 2,10,000 or more, opt for the old tax regime. But, if your investment is less than that, go for a new tax regime.
For an income of Rs. 15 lakhs, if the amount of your investment is eligible for a tax deduction of Rs. 2,50,000 or more, opt for the old tax regime. But, if your investment is less than that, go for a new tax regime. Income above Rs. 15 lakhs is taxable at both tax slab rates of 30% and can be changed depending on your investment plan.
Main feature of this Excel Utility-
#This Excel Utility can prepare at a time your Tax Computed Sheet as per Budget 2021
# Individual Salary Structure as per the Govt & Non-Govt Employee’s Salary Pattern
# Automated Income Tax H.R.A. Exemption Calculation U/s 10(13A)
# Automated Income Tax Arrears Relief Calculator U/s 89(1) with Form 10 E For the F.Y.2021-22
# Automated Income Tax Form 16 Part A&B and Form 16 Part B]
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