Seven Income Tax slabs of Salary Income has been introduced in the proposed Budget Income Tax Slabs.

According to the Proposed budget for the year 2022-2023, monthly salary of up to Rs. 50,000 (Rs. 600,000 annually) will be exempt from income tax.

Budget Proposed Income Tax Slabs 2022-2023

• A tax of Rs. 100 will be charged where taxable annual income exceeds Rs. 600,000 (Rs. 50,000 per month) but does not exceed Rs. 1.2 million annually (Rs. 100,000 per month).

• Where Salary annual income exceeds Rs. 1.2 million (Rs. 100,000 per month) but does not exceed an annual income of Rs. 2.4 million or Rs. 200,000 per month, tax rate of 7% of the amount exceeding the annual income of Rs. 1.2 million will be charged.

• Where taxable annual income exceeds Rs. 2.4 million or Rs. 200,000 per month but does not exceed Rs. 3.6 million annually or Rs. 300,000 per month, the tax rate will be 12.5 percent of the amount exceeding Rs. 2.4 million as well as a fixed amount of Rs. 84,000 annually.

• Where taxable annual income exceeds Rs. 3.6 million or Rs. 300,000 per month but does not exceed Rs. 6 million annually/Rs. 500,000 per month, the rate of tax will be 17.5 percent of the amount exceeding Rs. 3.6 million with an additional fixed Rs. 234,000 annually (Rs. 19,500 per month).

• Tax will Rs. 654,000 annually (Rs. 54,500 per month) + 22.5 percent of the amount exceeding Rs. 6 million if taxable annual income exceeds Rs. 6 million (Rs. 500,000 per month) but does not exceed Rs. 12 million (Rs. 1 million).

• Where taxable annual income exceeds Rs. 12 million (Rs. 1 million per month), there will be annual income tax of Rs. 2,004,000 (Rs. 1,67,000 per month) + 32.5% of the amount exceeding Rs. 12 million.

Income Tax Slabs of Companies, Corporate Sector

Three Income Tax slabs / rates proposed for the income of companies through the Finance Bill 2023.

Budget proposed an income tax rate of 20 percent on the income of small companies, 42 percent for banking companies, and 29 percent for any other companies.

Salary Tax Calculator | Income Tax Slabs 2022-2023 | Budget Salary Income Tax Slabs | Proposed Salary Tax Rates | Budget Proposals |