Place and status\u00a0of residence<\/span><\/li>\n<\/ul>\nAssessment Year (AY) and Financial Year (FY)<\/b><\/h2>\n
Many taxpayers are perplexed by the distinction between the Financial Year (FY) and the Assessment Year (AY). They frequently treat them as the same, which leads to errors when filing their income tax returns.<\/span><\/p>\n\n- Financial Year: <\/b>A Financial Year (FY) is the time from 1 April to 31 March \u2014 the fiscal year in which you generate an income.<\/li>\n<\/ul>\n
\n- Assessment Year: <\/b>The assessment year (AY) is the year that follows the fiscal year (FY). This is the moment when the money produced throughout the fiscal year is assessed and taxed. Both FY and AY begin on April 1 and finish on March 31. For example, the assessment year for FY 2020-21 is AY 2021-22.Because there is no change in tax rates in the Finance Bill\/Budget 2022, the tax rates applicable to both assessment years are the same, with the exception of a few modifications planned in Budget 2022 that are listed individually in the article.<\/li>\n<\/ul>\n
Individual Tax Rates (Resident \/ Non-Resident) for Financial Years 2021-22 & 2022-23<\/b><\/h2>\n
These slab rates differ for various types of taxpayers. Income tax has defined three types of “individual” taxpayers, including:<\/span><\/p>\n\n- \n
\n- Individuals (under the age of 60), including residents and non-residents<\/li>\n
- \u00a0Residency of Senior Citizens (60 to 80 years of age)<\/span><\/li>\n
- Super elderly citizens that live in the area (aged more than 80 years)<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n
\n- Applicable Rates on Income of Individual (other than senior and super senior)<\/b><\/li>\n<\/ul>\n
\n\n\nIncome Range<\/strong><\/td>\nIncome Tax Rate<\/strong><\/td>\n<\/tr>\n\n| 0 \u2013 Rs. 2 ,50, 000<\/span><\/td>\n | Nil<\/span><\/td>\n<\/tr>\n\n| Rs. 2,50,000 to Rs. 5,00,000<\/td>\n | 5%<\/span><\/td>\n<\/tr>\n\n| Rs. 5,00,000 to Rs. 10,00,000<\/td>\n | 20%<\/span><\/td>\n<\/tr>\n\n| Above Rs. 10,00,000<\/td>\n | 30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n \n- Applicable Rates on Income of Individual (senior citizen),\u00a0<\/b><\/li>\n<\/ul>\n
\n\n\nIncome Range<\/strong><\/td>\nIncome Tax Rate<\/strong><\/td>\n<\/tr>\n\n| Up to Rs. 3,00,000<\/td>\n | Nil<\/span><\/td>\n<\/tr>\n\n| Rs. 3,00,000 to Rs. 5,00,000<\/td>\n | 5%<\/span><\/td>\n<\/tr>\n\n| Rs. 5,00,000 to Rs. 10,00,000<\/td>\n | 20%<\/span><\/td>\n<\/tr>\n\n| Above Rs. 10,00,000<\/td>\n | 30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\n \n- Applicable Rates on Income of Individual (Super senior citizen)<\/b><\/li>\n<\/ul>\n
\n\n\nIncome Range<\/strong><\/td>\nIncome Tax Rate<\/strong><\/td>\n<\/tr>\n\n| Up to Rs. 5,00,000<\/td>\n | Nil<\/span><\/td>\n<\/tr>\n\n| Rs. 5,00,000 to Rs. 10,00,000<\/td>\n | 20%<\/span><\/td>\n<\/tr>\n\n| Above Rs. 10,00,000<\/td>\n | 30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n- Surcharge: <\/b>If an assessee’s total income exceeds certain restrictions, a surcharge is paid at the following rates on the amount of income tax:<\/li>\n<\/ul>\n
\n\n\nIncome Range<\/strong><\/td>\nSurcharge Rate<\/strong><\/td>\n<\/tr>\n\n| Rs. 50 Lakhs to Rs. 1 Crore<\/td>\n | 10%<\/span><\/td>\n<\/tr>\n\n| Rs. 1 Crore to Rs. 2 Crores<\/td>\n | 15%<\/span><\/td>\n<\/tr>\n\n| Rs. 2 Crores to Rs. 5 Crores<\/td>\n | 25%<\/span><\/td>\n<\/tr>\n\n| Exceeding Rs. 5 crores<\/td>\n | 37%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n- Health and Education Cess<\/b>: A health and education cess of 4% is collected on the amount of income tax plus surcharge.<\/span><\/li>\n
- Rebate under section 87A<\/b>:\u00a0Section 87A allows a resident individual (with a net income of less than Rs. 5, 00,000) to claim a tax relief. It is tax deductible before calculating the education cess. The rebate is equal to 100% of income tax or Rs. 12,500, whichever is less.<\/span><\/li>\n<\/ul>\n
Income Tax Rates for Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Individuals (BOI), and Other Artificial Jurisdictional Persons for FY 2021-22 and 2022-23<\/b><\/h2>\nThe Tax rates are as follows:<\/span><\/p>\n\n\n\nIncome Range<\/strong><\/td>\nIncome Tax Rate<\/strong><\/td>\n<\/tr>\n\n| 0 \u2013 Rs. 2 ,50, 000<\/span><\/td>\n | Nil<\/span><\/td>\n<\/tr>\n\n| Rs. 2,50,000 to Rs. 5,00,000<\/td>\n | 5%<\/span><\/td>\n<\/tr>\n\n| Rs. 5,00,000 to Rs. 10,00,000<\/td>\n | 20%<\/span><\/td>\n<\/tr>\n\n| Above Rs. 10,00,000<\/td>\n | 30%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Surcharge and Health and Education Cess<\/b>: Same as Individual Rates Listed Above.<\/span><\/p>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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