Income Tax Slabs for AY 2021-22.

 

Income Tax Slabs for AY 2021-22:-

Individuals and HUFs can opt for the Existing Tax Regime or the New Tax Regime

with lower rate of taxation (u/s 115 BAC of the Income Tax Act).

The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain Exemptions and Deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime. 

Existing Tax Regime 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

 

For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year: Existing Tax Regime New Tax Regime u/s 115BAC Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate Up to ₹ 3,00,000 Nil Up to ₹ 2,50,000 Nil ₹ 3,00,001 - ₹ 5,00,000 5% above ₹ 3,00,000   ₹ 2,50,001 - ₹ 5,00,000 5% above ₹ 2,50,000 ₹ 5,00,001 - ₹ 10,00,000 ₹ 10,000 + 20% above ₹ 5,00,000 ₹ 5,00,001 - ₹ 7,50,000 ₹ 12,500 + 10% above ₹ 5,00,000 Above ₹ 10,00,000 ₹ 1,10,000 + 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

 

For Individual (resident or non-resident) 80 years of age or more anytime during the previous year: Existing Tax Regime New Tax Regime u/s 115BAC Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate Up to ₹ 5,00,000   Nil Up to ₹ 2,50,000 Nil ₹ 5,00,001 - ₹ 10,00,000 20% above ₹ 5,00,000 ₹ 2,50,001 - ₹ 5,00,000 5% above ₹ 2,50,000 Above ₹ 10,00,000  ₹ 1,00,000 + 30% above ₹ 10,00,000 ₹ 5,00,001 - ₹ 7,50,000 ₹ 12,500 + 10% above ₹ 5,00,000     ₹ 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

 

Note:  1. The rates of Surcharge and Health & Education cess are same under both the tax regimes  2. Rebate u/s 87-A Resident Individual whose Total Income is not more than ₹ 5,00,000 is also eligible for a Rebate of up to 100% of income tax or ₹ 12,500, whichever is less. This Rebate is available in both tax regimes

 

Surcharge, Marginal Relief and Health & Education Cess:- 

What is Surcharge? Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates 10% - Taxable Income above ₹ 50 lakh – up to ₹ 1 crore 15% - Taxable Income above ₹ 1 crore - up to ₹ 2 crore 25% - Taxable Income above ₹ 2 crore - up to ₹ 5 crore 37% - Taxable Income above ₹ 5 crore Maximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112A and 115AD is 15% What is Marginal Relief? Marginal relief is a Relief from Surcharge, provided in cases where the Surcharge payable exceeds the additional income that makes the person liable for Surcharge. The amount payable as Surcharge shall not exceed the amount of income earned exceeding ₹ 50 lakh, ₹ 1 crore, ₹ 2 crore or ₹ 5 crore respectively What is Health and Education cess? Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)