In this article, the New Income Tax Slab for Financial Year 2022-2023 and Assessment Year 2023-2024, have been elaborately discussed. Read to know more.
Income Tax is the direct tax levied by the Government of India on an individual’s income through salaries, generated by businesses and venture companies, within their jurisdiction. By law, taxpayers must file an income tax return annually to determine their tax obligations. Income tax collected serves as a source of major revenue for the government, which in turn is put to for public services and governmental obligations. Business income taxes apply to non-salaried owners of corporations, partnerships, small businesses, and people who are self-employed. Income tax is calculated on the next taxable income of the entity based on the income tax slab rates which are pre-defined by the Income Tax Department, officiated through the Union Budget.
The tax one pays is on the amount one earns till the end of the financial year. Paying taxes by filling in relevant details online, has transformed and made the entire process of paying taxes easier and championing.
Tax Slabs
Any one individual or body or group of individuals that earn more than the basic exemption limit is expected to pay income tax.
- Artificial Judicial Persons,
- Corporate Firms,
- Association of Persons (AOPs),
- Hindu Undivided Families (HUFs),
- Companies,
- Local Authorities,
- Body of Individuals (BOIs) is all required to record their ITRs and pay taxes.
It is mandatory to know how many type of ITR is present and to file ITR for individuals if their gross total income is over Rs. 2,50, 000 in a financial year. This limit exceeds Rs. 3,00, 000 for senior citizens who are of the age of 60 and Rs. 5,00, 000 for super senior citizens of the age of 80.
For the financial year (FY) of 2022- 2023 (and AY 2023- 2024) the tax slabs are as follows:
Income up to Rs.2,50,000 – NIL
From Rs.2,50,001 to Rs.5,00,000 – 5%
From Rs.5,00,001 to Rs.7,50,000 – 10%
From Rs.7,50,001 to Rs.10,00,000 – 15%
From Rs.10,00,001 to Rs.12,50,000 – 20%
From Rs.12,50,001 to Rs.15,00,000 – 25%
Income above Rs.15,00,000 – 30%
Government Bodies that deal with Tax related guidelines and discrepancies
The government agency that undertakes the direct collection of tax in India is the Income Tax Department. All operations of the department are handled by the Central Board for Direct Taxes (CBDT). Under the Department of Revenue of the Ministry of Finance, Ministry of Corporate Affairs (MCA), the Income Tax Department (IT Department) handles monitoring the collection of
- Income Tax,
- Expenditure Tax and
- various other Financial Acts are passed every year in the Union Budget.
Get precise tax calculations with our salary income tax calculator. Try our income tax calculator for quick and easy results.
The Central Board of Direct Taxes (CBDT) regulates the policy and planning of taxes. The Central Board of Direct Taxes is also responsible for administering the direct tax laws through the IT Department. Besides to the collection of taxes, the IT department is also involved in the prevention and detection of tax avoidance. Issuing of major tax-related Tax Notices, penalties, and the terms of prosecution are regulated by it too.
In order to pay income tax through online banking, one can be directed by the following step-by-step guide:
(The taxpayer should have his Permanent Account Number with him to register himself with the PAN as the user ID to the account to pay for ITs thereafter. it is important to know how to file tax using form 16, Form 16A, Form 16 B, or Form 16C, are interest certificates issued by a bank or post office. Form 26AS, and tax saving investment proof are some other documents to be kept handy whilst paying taxes online.)
Step-1: To pay taxes online, the taxpayer should have to log in to http://www.tin-nsdl.com > Services > e-payment: Select Pay Taxes or click on the tab “e-pay taxes” provided on the said website.
Step-2: The taxpayer should select the relevant challan i.e., ITNS 280, ITNS 281, ITNS 282, ITNS 283, ITNS 284, or Form 26 QB demand payment (only for TDS on sale of the property) as applicable.
Step-3: One should enter PAN / TAN (as applicable) and other mandatory challan details like the accounting head under which payment is made, the address of the taxpayer and the bank through which payment is to be made, etc.
Step-4: On submission of data entered, a confirmation screen will be displayed. If PAN / TAN is valid as per the ITD PAN / TAN master, then the full name of the taxpayer as per the master will be displayed on the confirmation screen.
Step-5: On confirmation of the data so entered, the taxpayer will be directed to the net-banking site of the bank.
Step-6: The taxpayer should have to log in to the net-banking site with the user id/password provided by the bank for net-banking purposes and enter payment details at the bank site.
Step-7: On successful payment, a challan counterfoil will be displayed containing CIN, payment details, and bank name through which the e-payment has been made. This counterfoil is proof of payment being made.
Can Return of Income be filed online too, besides IT?
Yes, Income Tax Returns can be filed online too. The applicant would need their Form 16 provided by their employer and any proof of investments. One ought to be equipped with all records before one can start filing.
Old Regime vs New Regime
As the discussion ensues, which of the two systems is better economically for the majority population of the lower middle class and middle-class families in the country, a clear demarcation between the two regimes surfaces and it is established thereof that, the old regime is more profitable for the high earners and the present, revised and the new regime is beneficial for people who make low investments.
The new regime offers seven lower-income tax slabs, anyone paying taxes without claiming tax deductions can benefit from paying a lower rate of tax under the new tax regime.
CONCLUSION
Sometimes, the government also provides income tax rebates, which benefit people in the lower-income group. To collect long-term funds, the government also provides income tax incentives. The amount invested in tax-saving schemes is deducted from gross income, which reduces the amount of taxable income and benefits the taxpayer. About 71 percent of the government’s total revenues are collected through taxes and duties, while nine percent come from non-tax revenues, and the rest of about twenty percent are covered through borrowings and other liabilities.
The revenue collected by the government is used in various ways, like paying states’ share of taxes and duties, interest payments, expenditure on central sector schemes and centrally sponsored schemes, pensions to retired government employees, defense expenditures, subsidies, and expenses through finance commission, transfers, etc.
