Last Updated on June 30, 2022 by Galaxy World
I am sharing here the latest Income Tax Rates 2022-23 for Salaried Persons (Employees) with Slabs. There was various news regarding an increase in tax rates for employees. Now the Government has issued the latest chart of the salaried person’s tax rates 2022-23. The chart of the tax rates for 2022 for employees is as under:
Income Tax Rates 2022-23 for Salaried Persons (Employees)
|S. No.||Taxable income||Rate of Tax|
|1.||Where the taxable income does not exceed Rs.600,000||Rs. 0|
|2.||Where the taxable income exceeds Rs.600,000 but does not exceed Rs.1,200,000||2.5% of the amount exceeding Rs.600,000|
|3.||Where taxable income exceeds Rs.1,200,000 but does not exceed Rs.2,400,000||Rs.15,000 + 12.5% of the amount exceeding Rs.2,400,000|
|4.||Where taxable income exceed Rs.2,400,000 but does not exceed Rs.3,600,000||Rs.165,000 + 20% of the amount exceeding Rs.2,400,000|
|5.||Where taxable income exceeds Rs.3,600,000 but does exceeds Rs.6,000,000||Rs.1005,000 + 32.5% of the amount exceeding Rs.6,000,000|
|6.||Where the taxable income exceeds Rs.6,000,000 but does not exceed Rs.12,000,000||Rs.2,955,000 + 35% of the amount exceeding
- In sub-paragraph (c), in Division II, in the Table, in column (1), against Banking company, for the expression “42%” in column (2), the expression “39%” shall be substituted;
- For sub-paragraph (e), the following shall be substituted, namely:-
“(e) after Division IIA, the following new Division shall be inserted, namely:-
Super Tax on high-earning persons
The rate of tax under section 4C shall be—
Tax Rates Increased or Decreased?
If we look at the chart the tax rates for various slabs of employees decreased. For example, if we look at the 2nd slab of tax, the tax rates decreased from 5% to 2.5%. In previous years the tax rates for these employees were 5%. However, the slab extended. Previously the annual income for this slab started from 800,000/- per annual, now this slab starts from 600,000/- per annual. Employees whose monthly income is 50,001 will have to pay the income tax. You can check other slabs too for the calculation of your annual tax. The employees whose salary is Rs. 1 to 50,000/- will have to pay no tax.
Calculation of Tax
We will calculate the tax on the amount that exceeds the slab’s amount. Suppose the monthly income of an employee is 70,000/- then we shall minus 50,000/- from it and total tax will be on the amount of 20,000/- SO the tax calculation on 20000/- is 20000 x 2.5/100 = 500/- Rupees.
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