Income Tax FY 2022-23 AY 2023-24 Income Tax Act - IT Slab Rates Income Tax Official Circular. Circular No 24/2022. Income Tax Deduction from Salary during the Financial Year 2022-23 under Sec 192 of the Income Tax Act 1961. Complete information. This Income Tax 2022-23 FY is for the Income between 1st April 2022 to 31st March 2023. All the Income, Deductions, Expenses will be calculated for Income Tax Calculation for Financial Year 2022-23
CIRCULAR NO. 24/2022
The Income Tax Circular 24/2022 contains the rates of deduction of Income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2022-23 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred are of Income-tax Act, 1961 and Income-tax Rules, 1962. Income Tax FY 2022-23 AY 2023-24 Rates of Income-tax as per Finance Act, 2022.
Rates of tax
A. Normal Rates of tax: In the case of every individual other than the individuals referred to in para (B) and (C) below:
CIRCULAR NO. 24/2022
The Income Tax Circular 24/2022 contains the rates of deduction of Income-tax from the payment of income chargeable under the head "Salaries" during the financial year 2022-23 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). All the sections and rules referred are of Income-tax Act, 1961 and Income-tax Rules, 1962. Income Tax FY 2022-23 AY 2023-24 Rates of Income-tax as per Finance Act, 2022.
Income Tax FY 2022-23 AY 2023-24 Income Tax Act - IT Slab Rates Income Tax Official Circular
Income Tax 2022-23 FY is for the Income between 1st April 2022 to 31st March 2023. All the Income, Deductions, Expenses will be calculated for Income Tax Calculation for Financial Year 2022-23.
The Income Tax FY 2022-23 Circular contains the following content:
Key Points:
1. Definition of “salary”, “perquisite” and “profit in lieu of salary” (section 17)
1.1 What is salary in Income Tax FY 2022-23 ?
1.2 What is a Perquisite in Income Tax FY 2022-23?
1.1 What is salary in Income Tax FY 2022-23 ?
1.2 What is a Perquisite in Income Tax FY 2022-23?
1.3 What is profit in lieu of salary in Income Tax FY 2022-23?
2. Rates of income-tax as per Finance Act, 2022 in Income Tax FY 2022-23
2.1 Rates of tax in Income Tax FY 2022-23
2.2 Surcharge on Income-tax in Income Tax FY 2022-23
2.3 Health and Education Cess in Income Tax FY 2022-23
2.4 Concessional Rates of Tax u/s 115BAC in Income Tax FY 2022-23
2.1 Rates of tax in Income Tax FY 2022-23
2.2 Surcharge on Income-tax in Income Tax FY 2022-23
2.3 Health and Education Cess in Income Tax FY 2022-23
2.4 Concessional Rates of Tax u/s 115BAC in Income Tax FY 2022-23
Section 192 of the Income-tax Act, 1961: Broad scheme of Tax Deduction at Source from "Salaries”
3.1 Method of Tax Calculation in Income Tax FY 2022-23
3.2 Payment of Tax on Perquisites by Employer in Income Tax FY 2022-23
3.3 Computation of Average Income Tax
3.4 Salary from more than one employer
3.5 Relief When Salary Paid in Arrear or Advance
3.6 Information regarding Income under any other head
3.7 Computation of income under the head “Income from house property”
3.7.1 Conditions for claim of deduction of interest on borrowed capital for computation of Income
from House Property [section 24(b)]
3.8 Adjustment for Excess or Shortfall of Deduction
3.9 Salary Paid in Foreign Currency
5.2 Value of Perquisites as per Rule 3
5.3 Incomes not included under the head "Salaries" (Exemptions)
5.4 Deductions u/s 16 of the Act
5.5.1 Deduction in respect of Life insurance premia, deferred annuity, contributions to provident fund, subscription to certain equity shares or debentures, etc. (section 80C)
5.5.2 Deduction in respect of contribution to certain pension funds (Section 80CCC)
5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD):
5.5.4 Deduction in respect of health insurance premia paid, etc. (Section 80D)
5.5.5 Deductions in respect of expenditure on persons or dependants with disability
5.5.6 Deduction in respect of medical treatment, etc. (Section 80DDB)
5.5.7 Deduction in respect of interest on loan taken for higher education (Section 80E)
5.5.8 Deduction in respect of interest on loan taken for certain house property (Section 80EEA)
5.5.9 Deduction in respect of the interest payable on loan taken for the purpose of purchase of an
electric vehicle (80EEB)
5.5.10 Deductions on respect of donations to certain funds, charitable institutions, etc. (Section 80G)
5.5.11 Deductions in respect of rents paid (Section 80GG)
5.5.12 Deductions in respect of certain donations for scientific research or rural development
(Section 80 GGA)
5.5.13 Deduction in respect of interest on deposits in savings account (Section 80TTA)
5.5.14 Deduction in respect of interest on deposits in case of senior citizens (Section 80TTB)
6. Rebate Of Rs12,500 For Individuals Having Total Income Upto Rs 5 Lakh [Section 87A]
7. TDS on payment of accumulated balance under recognised provident fund and contribution from
approved superannuation fund
3.2 Payment of Tax on Perquisites by Employer in Income Tax FY 2022-23
3.3 Computation of Average Income Tax
3.4 Salary from more than one employer
3.5 Relief When Salary Paid in Arrear or Advance
3.6 Information regarding Income under any other head
3.7 Computation of income under the head “Income from house property”
3.7.1 Conditions for claim of deduction of interest on borrowed capital for computation of Income
from House Property [section 24(b)]
3.8 Adjustment for Excess or Shortfall of Deduction
3.9 Salary Paid in Foreign Currency
Computation Of Income Under The Head "Salaries"
5.1 Income chargeable under the head "Salaries"5.2 Value of Perquisites as per Rule 3
5.3 Incomes not included under the head "Salaries" (Exemptions)
5.4 Deductions u/s 16 of the Act
Deductions Under Chapter VI-A of the Act for Income Tax FY 2022-23
5.5.2 Deduction in respect of contribution to certain pension funds (Section 80CCC)
5.5.3 Deduction in respect of contribution to pension scheme of Central Government (Section 80CCD):
5.5.4 Deduction in respect of health insurance premia paid, etc. (Section 80D)
5.5.5 Deductions in respect of expenditure on persons or dependants with disability
5.5.6 Deduction in respect of medical treatment, etc. (Section 80DDB)
5.5.7 Deduction in respect of interest on loan taken for higher education (Section 80E)
5.5.8 Deduction in respect of interest on loan taken for certain house property (Section 80EEA)
5.5.9 Deduction in respect of the interest payable on loan taken for the purpose of purchase of an
electric vehicle (80EEB)
5.5.10 Deductions on respect of donations to certain funds, charitable institutions, etc. (Section 80G)
5.5.11 Deductions in respect of rents paid (Section 80GG)
5.5.12 Deductions in respect of certain donations for scientific research or rural development
(Section 80 GGA)
5.5.13 Deduction in respect of interest on deposits in savings account (Section 80TTA)
5.5.14 Deduction in respect of interest on deposits in case of senior citizens (Section 80TTB)
6. Rebate Of Rs12,500 For Individuals Having Total Income Upto Rs 5 Lakh [Section 87A]
7. TDS on payment of accumulated balance under recognised provident fund and contribution from
approved superannuation fund
Income Tax FY 2022-23 AY 2023-24 Rates of Income-tax as per Finance Act, 2022
As per the Finance Act, 2022, the rates of income tax for the FY 2022-23 (i.e. Assessment Year 2023-24) are as follows:Rates of tax
A. Normal Rates of tax: In the case of every individual other than the individuals referred to in para (B) and (C) below:
| S. No | Total Income | Rate of tax |
| 1 | Where the total income does not exceed Rs. 2,50,000/-. | Nil; |
| 2 | Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. | 5 per cent of the amount by which the total income exceeds Rs. 2,50,000/-; |
| 3 | Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. | Rs. 12,500/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-; |
| 4 | Where the total income exceeds Rs. 10,00,000/-. | Rs. 1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-. |
Income Tax Slab Rates for FY 2022-23 for pesons age 60-80 Years
| Total Income | Rate of tax |
| Where the total income does not exceed Rs. 3,00,000/- | Nil; |
| Where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000/- | 5 per cent of the amount by which the total income exceeds Rs. 3,00,000/-; |
| Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- | Rs. 10,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-; |
| Where the total income exceeds Rs. 10,00,000/- | Rs. 1,10,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/- |
Income Tax FY 2022-23 for the persons above 80 Years of Age
| Total Income | Rate of tax |
| Where the total income does not exceed Rs. 5,00,000/- | Nil; |
| Where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000/- | 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-; |
| Where the total income exceeds Rs. 10,00,000/- | Rs. 1,00,000/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-. |
Health and Education Cess
The amount of Income tax as increased by the applicable surcharge shall be further increased by an additional surcharge, for the purposes of Union, to be called “Health and Education Cess on Income-tax”.
Health and Education Cess on Income-tax shall be levied at the rate of 4% percent of income tax including surcharge wherever applicable. No marginal relief shall be available in respect of such cess
Health and Education Cess on Income-tax shall be levied at the rate of 4% percent of income tax including surcharge wherever applicable. No marginal relief shall be available in respect of such cess
Income Tax New Tax Regime FY 2022-23 Slab Rates -Concessional Rates of Tax u/s 115BAC
Section 115BAC of the Income-tax Act, 1961 was inserted by the Finance Act, 2020 w.e.f. Assessment Year 2021-22. The new section 115BAC provides that the income-tax payable in respect of the total income of a person, being an individual or a HUF, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2021, shall, at the option of such person, be computed at the concessional rates as given in table below:| Sl. No. |
Total Income | Rate of tax |
| 1 | Up to Rs. 2,50,000 | Nil |
| 2 | From Rs. 2,50,001 to Rs. 5,00,000 | 5 per cent |
| 3 | . From Rs. 5,00,001 to Rs. 7,50,000 | 10 per cent |
| 4 | From Rs. 7,50,001 to Rs. 10,00,000 | 15 per cent |
| 5 | From Rs. 10,00,001 to Rs. 12,50,000 | 20 per cent |
| 6 | From Rs. 12,50,001 to Rs. 15,00,000 | 25 per cent |
| 7 | Above Rs. 15,00,000 | 30 percent |
Important Downloads for Income Tax 2022-23
Sec 24(b) Housing Loan Benefit in Deductions in Income Tax FY 2022-23
Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. However, this deduction is not available for person opting for New Tax Regime.
Interest on loan u/s 24(b) allowable is tabulated below
| Nature of Property | When loan was taken | Purpose of loan | Allowable (Maximum limit) |
| Self-Occupied | On or after 1/04/1999 | Construction or purchase of house property | ₹ 2,00,000 |
| On or after 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Before 1/04/1999 | Construction or purchase of house property | ₹ 30,000 | |
| Before 1/04/1999 | For Repairs of house property | ₹ 30,000 | |
| Let Out | Any time | Construction or purchase of house property | Actual value without any limit |
Tax deductions specified under Chapter VIA of the Income Tax Act -Rs 1.5 Lakhs
These Deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD (2) which will be applicable for New Tax Regime as well
IT Savings allowed under 80C, 80CCC, 80CCD (1) Total Limit 1.5 Lakhs
| IT Savings allowed under 80C, 80CCC, 80CCD (1) Total Limit 1.5 Lakhs | |
|---|---|
| 80C |
|
| 80CCC |
Annuity plan of LIC or other insurer towards Pension Scheme
|
| 80CCD(1) | Pension Scheme of Central Government |
| CPS / NPS Employees 80CCD(1B) | |
|---|---|
| Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1) Deductions under Sec 80D Rs 50,000 limit
This Deduction is above Rs 1.5 Lakh LimitThe total of the limit of Chapter IV A and 80 CCD(1B) comes to Rs 2 Lakhs |
|
Health Insurance Premium & Preventive Health check up
| 80 D Health Insurance Premium and Preventive Health Check Up (EHS Subscription) allowed | |
|---|---|
| For Self / Spouse or Dependent Children | ₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) |
| ₹ 5,000 for preventive health check up, included in above limit | |
| For Parents | ₹ 25,000 (₹50,000 if any person is a Senior Citizen) |
| ₹ 5,000 for preventive health check up, included in above limit | |
Various Sections in IT Act FY 2022-23 - Deductions Allowed in Each Section in brief
| IT Sections description | Max Limit allowed |
|---|---|
| 80 DD - Deduction towards payments made towards Maintenance or Medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme | Flat deduction of₹ 75,000 available for a person with Disability, irrespective of expense incurred The deduction is₹ 1,25,000 if the person has Severe Disability (80% or more) |
| 80 DDB Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases (DDO Cannot) | Deduction limit of₹ 40,000 (₹ 1,00,000 if Senior Citizen) |
| 80 E -Deduction towards interest payments made on loan for higher education of Self or relative | Total amount paid towards interest on loan taken |
| 80 EE -Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017 | Deduction limit of₹ 50,000 on the interest paid on loan taken |
| 80 EEA -Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE | Deduction limit of₹ 1,50,000 on the interest paid on loan taken |
| 80 EEB - Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023 | Deduction limit of ₹ 1,50,000 on the interest paid on loan taken |
| 80 G -
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc. Donation are eligible for deduction under the below categories |
100% Limit (Depending on the Institution) Above Rs 2000 shoud not be in Cash Mode |
| 80 GG - Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary Least of the following shall be allowed as deduction Rent paid reduced by 10% of Total Income before this deduction / ₹ 5,000 per month |
₹ 5,000 per month |
| 80 TTA -Deduction on interest received on saving bank accounts by Non-Senior Citizens | Deduction limit of₹ 10,000/- |
| 80 U Deductions for a resident individual taxpayer with Disability | Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred ; |
| Standard deduction under section 16 (ia) | Rs 50000 |
| Professioal Tax | Full |
| HRA (House Rent Allowance) exemption as per norms |
