Income Tax: Can We See Any Revision in Income Tax Slabs or Rates in Budget 2022?

In the backdrop of financial stress caused by the Covid outbreak, there were expectations that the higher tax slab limit should be raised. Nevertheless, on anticipated lines not much will be done on the income tax front with no tweaks in the current tax rates.

Income Tax: Can We See Any Revision in Income Tax Slabs or Rates in Budget 2022?

There is a view that amid financial stress any change in income tax rates shall be counter productive.
"If the existing rates are changed, while some sections of taxpayers may benefit, others may see a rise in their income tax liabilities, since the government will also have to ensure that there is minimal revenue foregone".

The Economic Survey tabled on Monday pinned hopes for bigger tax reliefs for all types of taxpayers, including salaried individuals, senior citizens, NRIs and pensioners.

But at the same time further relief granted in the form of increase in limit for standard deduction, work from home allowance as well as increase in section 80C limit given the fact that the limit has not been raised for quite a while.

Income tax rates and slab for Ay year 2022-23

Existing Tax Regime	#VALUE!	New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to ₹ 2,50,000	Nil	Up to ₹ 2,50,000	Nil
₹ 2,50,001 - ₹ 5,00,000	5% above ₹ 2,50,000	₹ 2,50,001 - ₹ 5,00,000	5% above ₹ 2,50,000
₹ 5,00,001 - ₹ 10,00,000	₹ 12,500 + 20% above ₹ 5,00,000	₹ 5,00,001 - ₹ 7,50,000	₹ 12,500 + 10% above ₹ 5,00,000
Above ₹ 10,00,000	₹ 1,12,500 + 30% above ₹ 10,00,000	₹ 7,50,001 - ₹ 10,00,000	₹ 37,500 + 15% above ₹ 7,50,000
		₹ 10,00,001 - ₹ 12,50,000	₹ 75,000 + 20% above ₹ 10,00,000
		₹ 12,50,001 - ₹ 15,00,000	₹ 1,25,000 + 25% above ₹ 12,50,000
		Above ₹ 15,00,000	₹ 1,87,500 + 30% above ₹ 15,00,000