Dinesh Singhal
Income Tax Act, 1961 Compliance Handbook as applicable for Fy 2022-23 (AY 2023-24) contains update on Tax Rates for FY 2022-23 & AY 2023-24, Residential Status and Scope of Total Income, Advance Tax, Tax Deducted at Source (TDS), Tax Collected at Source (TCS), Presumptive Tax Scheme, Tax Audit, Income from Capital Gains, Income from House Property, Assessments, Equalization Levy, Taxability of Gifts, Taxation of Partnership Firms, Restriction on Cash Receipts, Restriction on Cash Payments, Statement of Financial Transactions, Deductions, Interest Payable under Income Tax Act and Penalties under Income Tax Act.
1. Tax Rates for Applicable for AY 2022-23 & 2023-24:
Income Tax Rates for Individuals/HUF
Like Assessment Year 2022-23, for Assessment Year 2023-24 also, Individual and HUF taxpayers have an option to choose from 2 sets of rates i.e. such a taxpayer may calculate their income tax liability by applying the rates at which tax incidence is lesser.
a) Normal Rates provided under First Schedule of the Finance Act, 2022:
- General Rates:
| Net Income Range | Income Tax Rate |
|---|---|
| Up to ₹ 2,50,000 | Nil |
| Above 2,50,000 up to 5,00,000 | 5% |
| Above 5,00,000 up to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
- For resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:
| Net Income Range | Income Tax Rate |
|---|---|
| Up to ₹ 3,00,000 | Nil |
| Above 3,00,000 up to 5,00,000 | 5% |
| Above 5,00,000 up to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
- For resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:
| Net Income Range | Income Tax Rate |
|---|---|
| Up to ₹ 5,00,000 | Nil |
| Above 5,00,000 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
b) Optional Scheme of Taxation for Individuals & HUF:
Finance Act 2020 had introduced section 115BAC providing the Individual taxpayers and HUF, an option to pay tax at reduced rates. Thus, the Individual and HUF taxpayers can choose to pay tax at the rates prescribed in the above tables in (a), (b) & (c) or the rates mentioned u/s 115BAC mentioned below, whichever rates are beneficial to them. The rates prescribed by section 115BAC are as follows:
| Net Income Range | Income Tax Rate |
|---|---|
| 0 – 2.5 Lakhs | Nil |
| Above 2.5 Lakhs – 5 Lakhs | 5% |
| Above 5 Lakhs – 7.5 Lakhs | 10% |
| Above 7.5 Lakhs – 10 Lakhs | 15% |
| Above 10 Lakhs – 12.5 Lakhs | 20% |
| Above 12.5 Lakhs – 15 Lakhs | 25% |
| Above 15 Lakhs | 30% |
Just to clarify further I am retired person and income from interest is say Rs. 4 lakhs and Capital Gain (short term) from Eq. Share transactions is say Rs.3 lakhs then for calculating my total taxable income considered as Rs.7 lakhs or only 4 lakhs. Because there is separate Capital Gain tax.
Please do let me know for calculating total taxable income, Capital Gain from sale of Eq. Shares are also to be considered ?