Finance Act, 2022Re-read 2 September 2026Previous year 2021-22
Income-tax rates for assessment year 2022-23
The rates Finance Act, 2022 charged on the income of the previous year 2021-22, taken from the Act’s own charging section and First Schedule.
Independently re-read on 2 September 2026
A second pass went back to the department’s text at the sources listed at the foot of this page and read these figures again. That check is recorded in the record itself as verified_on: 2026-09-02.
What this year’s reading did not reach
SURCHARGE ABOVE FIVE CRORE RUPEES: the Department's published text of this Act's Part I, Paragraph A, clause (d) reads 'thirty-five per cent.' That reading is stable - it was obtained from two distinct content records (5302601 and 13377868) and from the rendered page https://www.incometaxindia.gov.in/w/first-schedule- which is the same stored HTML served three ways, so it is what the Department has published, not a fetching artefact. It is nevertheless wrong, and four independent texts show why. (1) The Government's own MEMORANDUM EXPLAINING THE PROVISIONS IN THE FINANCE BILL, 2022 (https://www.indiabudget.gov.in/budget2022-23/doc/memo.pdf), under the rates for the assessment year 2022-23, gives the four tiers as ten, fifteen, twenty-five and 'thirty-seven per cent.' for total income exceeding five crore rupees. (2) The Finance Act, 2021, Part III, Paragraph A, clause (d) - which prescribes advance tax for the financial year 2021-22, that is this very assessment year - reads 'thirty-seven per cent' on the Department's own page for that Act (https://www.incometaxindia.gov.in/w/the-first-schedule-). The Department's corpus therefore states two different rates for the same assessment year. (3) Part III of THIS Act, on the same page whose Part I says thirty-five, reads 'thirty-seven per cent.' (4) The identical clause reads thirty-seven in the Finance Act 2021 Part I, the Finance Act 2023 Part I (/w/first-schedule-102), the Finance (No. 2) Act 2024 Part I (/w/first-schedule-101) and the Finance Act 2025 Part I (/w/first-schedule-100). The rate is recorded as 37. The figure comes from the Memorandum for this assessment year and from the Finance Act 2021 Part III for this assessment year - not carried over from a neighbouring year's Part I. Remaining gaps: local authority (Paragraph D) 30 per cent, surcharge twelve per cent above one crore rupees. The section 115BAC concessional table is in the Income-tax Act, not in this Finance Act. The rebate under section 87A is not in the parts read.
New regime: No new-regime surcharge cap established for this year; see the 2021-22 entry. The insertion is attributed from the department's footnote, not from the Finance Act, 2020's own amending section.
Which Act set these rates
ActFinance Act, 2022
Assessment year2022-23
Income of the previous year2021-22
What was readthe charging section and the First Schedule
Finance Act, 2022 charged income-tax for the assessment year commencing 1 April 2022. What it charged was the income of the previous year 2021-22. The two are a year apart and the difference matters: a table headed by the wrong one is useless.
The slabs
Old
every individual other than the individual referred to in items (II) and (III) of Paragraph A, Hindu undivided family, association of persons, body of individuals whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of Part I applies
Maximum amount not chargeable to income-tax: Rs 2,50,000
| Total income | Rate of income-tax |
|---|
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 – Rs 5,00,000 | 5% |
| Rs 5,00,001 – Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
Section 2(1): for the assessment year commencing on the 1st day of April, 2022, income-tax shall be charged at the rates specified in Part I of the First Schedule.
New (section 115BAC)
individual or Hindu undivided family exercising the option under section 115BAC of the Income-tax Act
Rate table: section 115BAC(1), as put there by Finance Act, 2020. Footnote to section 115BAC: "Ins. by the Act No. 12 of 2020, w.e.f. 1-4-2021". The table was unchanged for this year.
Maximum amount not chargeable to income-tax: Rs 2,50,000
| Total income | Rate of income-tax |
|---|
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 – Rs 5,00,000 | 5% |
| Rs 5,00,001 – Rs 7,50,000 | 10% |
| Rs 7,50,001 – Rs 10,00,000 | 15% |
| Rs 10,00,001 – Rs 12,50,000 | 20% |
| Rs 12,50,001 – Rs 15,00,000 | 25% |
| Rs 15,00,001 and above | 30% |
Rebate under section 87A: total income up to Rs 5,00,000; rebate up to Rs 12,500 — The general rebate in section 87A, read in the department's 2022 edition of the Act, which carries a single paragraph and no proviso: hundred per cent of the income-tax or twelve thousand five hundred rupees, whichever is less, for a resident individual whose total income does not exceed five hundred thousand rupees. No separate new-regime figure existed for this year.
Part I, Paragraph A refers to 'the provision of section 115BAC of the Income-tax Act' in its surcharge sentence only; the concessional slab table is in the Income-tax Act, not in this Finance Act, and was not among the parts read.
Senior citizens, very senior citizens, and women
Only where the Act for this year set a separate threshold or a separate table. Where it did not, this page says so.
Resident senior citizens
resident in India, sixty years or more but less than eighty years at any time during the previous year; Nil up to Rs. 3,00,000; 5 per cent of the amount exceeding Rs. 3,00,000 up to Rs. 5,00,000; Rs. 10,000 plus 20 per cent of the amount exceeding Rs. 5,00,000 up to Rs. 10,00,000; Rs. 1,10,000 plus 30 per cent of the amount exceeding Rs. 10,00,000
Maximum amount not chargeable to income-tax: Rs 3,00,000
Resident very senior citizens
resident in India, eighty years or more at any time during the previous year; Nil up to Rs. 5,00,000; 20 per cent of the amount exceeding Rs. 5,00,000 up to Rs. 10,00,000; Rs. 1,00,000 plus 30 per cent of the amount exceeding Rs. 10,00,000
Maximum amount not chargeable to income-tax: Rs 5,00,000
Resident women
This year’s record carries no separate table or threshold under this head.
Surcharge
| Total income | Surcharge on the income-tax |
|---|
| Rs 50,00,000 – Rs 1,00,00,000 | 10% |
| Rs 1,00,00,000 – Rs 2,00,00,000 | 15% |
| Rs 2,00,00,000 – Rs 5,00,00,000 | 25% |
| Rs 5,00,00,000 and above | 37% |
Clauses (a) and (b) are computed on total income including income by way of dividend and income under sections 111A and 112A; clauses (c) and (d) exclude such income. Clause (e): where the total income (including dividend and section 111A/112A income) exceeds two crore rupees but is not covered by clauses (c) and (d), the rate is fifteen per cent. Provisos cap the surcharge on dividend and section 111A/112A income at fifteen per cent, and give marginal relief. THE ABOVE-FIVE-CRORE TIER IS RECORDED AS 37 PER CENT AND NOT AS THE 'thirty-five per cent.' PRINTED ON THE DEPARTMENT'S OWN PAGE FOR THIS ACT - see gaps for why.
Cess
| Cess | Rate |
|---|
| Health and Education Cess | 4% |
Section 2 of the Finance Act, 2022: Health and Education Cess at four per cent.
Marginal relief
Part I contains marginal-relief provisos: the total of income-tax and surcharge on a total income above a threshold shall not exceed the total of income-tax (and surcharge, where applicable) on a total income equal to that threshold by more than the amount of income that exceeds the threshold. Equivalent provisos appear at the one crore rupee threshold in Paragraphs B, C and D and at the one crore and ten crore rupee thresholds in Paragraph E.
Companies, firms, co-operative societies and local authorities
Reproduced in the Act’s own words, because these rates carry conditions a single percentage cannot.
| Assessee | Rate as the Act states it |
|---|
| Domestic company | 25 per cent of the total income where its total turnover or the gross receipt in the previous year 2019-20 does not exceed four hundred crore rupees; otherwise 30 per cent. Surcharge: seven per cent above one crore rupees but not exceeding ten crore rupees; twelve per cent above ten crore rupees. |
| Foreign company | 50 per cent on royalties and fees for technical services under the approved pre-1976 agreements described in Paragraph E; 40 per cent on the balance of the total income. Surcharge: two per cent above one crore rupees but not exceeding ten crore rupees; five per cent above ten crore rupees. |
| Firms and limited liability partnerships | 30 per cent of the total income; surcharge twelve per cent of such income-tax where the total income exceeds one crore rupees |
| Co-operative societies | 10 per cent of the total income where it does not exceed Rs. 10,000; Rs. 1,000 plus 20 per cent of the amount exceeding Rs. 10,000 where the total income exceeds Rs. 10,000 but not Rs. 20,000; Rs. 3,000 plus 30 per cent of the amount exceeding Rs. 20,000 where the total income exceeds Rs. 20,000. Surcharge twelve per cent where the total income exceeds one crore rupees. |
| Local authorities | The Act’s text for this was not reached. No figure is recorded, and none has been supplied from another year. |
What changed from the year before
Worked out by comparing this record with the one for the preceding assessment year in this collection. Where a figure is absent from either record, that is said rather than guessed.
- Against assessment year 2021-22 (Finance Act, 2021): the new (section 115BAC) regime’s exemption limit is unchanged at Rs 2,50,000.
- Against assessment year 2021-22 (Finance Act, 2021): the old regime’s exemption limit is unchanged at Rs 2,50,000.
- The top slab rate is unchanged at 30%.
- The surcharge is unchanged: 4 tiers, topping out at 37%.
- The cess is unchanged: Health and Education Cess 4%.
- The company rates are stated differently this year; read both years’ wording rather than taking a single number from either.
- The firm rate stand in the same words as the year before.
- The co-operative society rates stand in the same words as the year before.
- Neither record reaches the local authority rate.
- The separate threshold for resident senior citizens is unchanged at Rs 3,00,000.
- The separate threshold for resident very senior citizens is unchanged at Rs 5,00,000.
What this page is, and what it is not
The figures are the Finance Act’s own. Every rate, threshold and exemption on this page was taken out of the Income Tax Department’s own text of the Act that charged the year — the charging section and the First Schedule — and the records we read are linked under Sources on each year’s page. The writing around the figures is ours: the arrangement, the headings, the comparison with the year before and every sentence of explanation. Those are not the Act.
These tables are for orientation. The Act governs. A rate table is a finding aid, not the law. The Act, its First Schedule and the provisos in it decide what is payable, and a table cannot carry the provisos. If you are about to rely on a figure here — in a return, in a computation, in a reply to a notice — open the source linked on the year’s page and read the figure in the Act for yourself. Where a record did not reach a rate, this library says so rather than filling the gap.