Income Tax Slab Rates for FY 2021-22 (AY 2022-23), FY 2020-21 (AY 2021-22)

The Union Budget for the year 2021 was presented by the Finance Minister Nirmala Sitharaman on the 1st of February, 2021. The new income tax rate will be applicable from FY 2020-21 corresponding to Assessment Year 2021-22. The Union Budget will be presented on the 1st of February, 2021.

Furthermore, given the budget is just a couple of days away now, the expectations surrounding it are huge. Additionally, the FM has also launched the “Union Budget Mobile App” to access the budget documents by the Members of Parliament (MPs) and the general public.

Income Tax Slab Rates for FY 2021-22 AY (2022-23)

Income tax slab rates for individuals (for resident or non-resident below the age of 60 years)

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

Income Tax slab rates for senior citizens (for individuals who are of the age of 60 years or more but less than the age of 80 years)

Existing Regime New Tax Regime u/s 115BAC
Income Tax Slab Income Tax Rate Income Tax Slab Income Tax Rate
Up to INR 3,00,000 NIL Up to INR 2,50,000 Nil
INR 3,00,001 to INR 5,00,000 5% above INR 3,00,000 INR 2,50,001 to INR 5,00,000 5% above INR 2,50,000
INR 5,00,001 to INR 10,00,000 INR 10,000 + 20% above INR 5,00,000 INR 5,00,001 to INR 7,50,000 INR 12,500 + 10% above INR 5,00,000
Above INR 10,00,000 INR 1,10,000 + 30% above INR 10,00,000 INR 7,50,001 to INR 10,00,000 INR 37,500 + 15% above INR 7,50,000
    INR 10,00,001 to INR 12,50,000 INR 75,000 + 20% above INR 10,00,000
    INR 12,50,001 to INR 15,00,000 INR 1,25,000 + 25% above INR 12,50,000
    Above INR 15,00,000 INR 1,87,500 + 30% above INR 15,00,000

Senior citizens of the age of 75 and above who have interest income or pension income do not have to file their ITR
Tip
Senior citizens of the age of 75 and above who have interest income or pension income do not have to file their ITR

Income tax slab rates for Super Senior citizens (for individuals of the age of 80 years and above)

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

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated in the above 3 categories.
Surcharge: 10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.
Rebate: An individual (resident) is entitled to rebate under section 87A if his total income does not exceed INR 5,00,000. The amount of rebate shall be 100% of income-tax or INR 12,500, whichever is less. 

Income Tax slab rates for partnership firms

A partnership firm that includes LLP is taxable at 30%. 
Surcharge: A surcharge of 12% is payable if total income exceeds INR 1 Cr. 
Cess: An additional 4% surcharge will be taxable for Health and Education Cess.

ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
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ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
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Income Tax Rates for Companies

Particulars  Tax Rates
Existing Companies   22%
Newly Incorporated Companies (Manufacturing)  15%

The tax rate for foreign companies is 40%. 
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount.
Surcharge: A surcharge of 12% is payable if total income exceeds INR 1 Cr. 

Income Tax slab rates for AOP/BOI/Any other artificial juridical person

 

Net Income Range Income Tax Rates
Up to INR 2,50,000 NIL 
INR 2,50,000 to INR 5,00,000  5%
INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.

Ask an Expert (Income Tax)
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Ask an Expert (Income Tax)
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Income Tax slab rates for co-operative society

Net Income Range Income Tax Rate
Up to INR 10,000 10%
INR 10,000 to INR 20,000 20%
Above INR 20,000 30%

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 12% of tax is applicable when total income exceeds INR 1 Cr.

Income Tax rates for local authority

The local authority is taxable at 30%. 
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 12% of Income Tax when total income exceeds INR 1 Cr.

What is Surcharge?

A surcharge is an additional charge on Income Tax. It was introduced with a principal that the rich should contribute more by way of tax, as compared to the poor.

Earlier the surcharge was applicable only on corporate assessments. In Budget 2013, a 10% surcharge was introduced on rich individuals having income greater than INR 1 crore. This rate was subsequently increased to 12% in budget 2015 and further to 15% in budget 2016.

How to Calculate Surcharge?

A Surcharge is calculated on total income tax and not on total income. Criteria for income above INR 1 crore is only to check the applicability of Surcharge. Also, note that if a surcharge is applicable then education cess will be calculated on the total amount of income tax plus a surcharge. Let’s look at a scenario to understand.

Particulars Taxpayer A Taxpayer B
Total taxable income 97,00,000 1,01,00,000
Total tax payable as per Income Tax Slab Rate 27,35,000 37,25,000
Applicability of Surcharge No Yes
Surcharge @ 15% NA 5,58,750
Total tax plus Surcharge 27,35,000 42,83,750
Education Cess @ 2% and higher education cess @ 1% 82,050 1,28,510
Total tax payable 28,17,050 44,12,260

 

Surcharge Rates

The given tax rate slabs are applicable to any individual, HUF or artificial judicial person.

Nature of Income Up to INR 50L  More than 50L and up to 1 Cr. More than 1 Cr. and up to  2 Cr.  More than 2 Cr. and up to 5 Cr. More than 5 Cr. and up to 5 Cr.  More than 5 Cr. and up to 10 Cr. More than 10 Cr.
Short term capital gain covered under section 111A NIL 10% 15% 15% 15% 15% 15%
Long term capital gain covered under section 112A NIL 10% 15% 15% 15% 15% 15%
Any other Income  NIL 10% 15% 25% 15% 37% 37%

 

Income Tax Slab Rates FY 2020-21 (AY 2021-22)

Income tax slab rates for individuals (for resident or non-resident below the age of 60 years):

 

Income Range  Current Income Tax Rates New Income Tax Rates
Up to INR 2,50,000 NIL NIL
INR 2,50,001 to INR 5,00,000 5% 5%
INR 5,00,001 to INR 7,50,000 20% 10%
INR 7,50,001 to INR 10,00,000 20% 15%
INR 10,00,001 to INR 12,50,000 30% 20%
INR 12,50,001 to INR 15,00,000 30% 25%
Above INR 15,00,000 30% 30%

 

Income Tax slab rates for senior citizens (for individuals who are of the age of 60 years or more but less than the age of 80 years):

Existing Tax Regime New Tax Regime u/s 115BAC
Income Range Tax Slab Rates Income Range Tax Slab Rates
Up to INR 3,00,000 NIL  Up to INR 2,50,000 NIL
INR 3,00,001 to INR 5,00,000  5% INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 10,00,000 20% INR 5,00,001 to INR 7,50,000 10%
Above INR 10,00,000 30% INR 7,50,001 to INR 10,00,000 15%
    INR 10,00,001 to INR 12,50,000 20%
    INR 12,50,001 to INR 15,00,000 25%
    Above INR 15,00,000 30%

Income tax slab rates for Super Senior citizens (for individuals of the age of 80 years and above):

Income Range  Current Income Tax Rates
Up to INR 5,00,000 NIL 
INR 5,00,001 to INR 10,00,000 20%
Above INR 10,00,000 30%

 

Income Range New Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated in the above 3 categories.
Surcharge: 10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.
Rebate: An individual (resident) is entitled to rebate under section 87A if his total income does not exceed INR 5,00,000. The amount of rebate shall be 100% of income-tax or INR 12,500, whichever is less.

FAQs

What is Surcharge?

It is the amount that is levied upon the tax payable and not on the income that is generated. In other words, it is a tax that is levied upon the general tax.

For example: if an individual has generated an income of INR 100 over which the tax payable is INR 30, then the surcharge would be 10% of INR 30.

How to calculate rebate u/s 87A?

1. Calculate your Gross Total Income (GTI)
2. Reduce the deductions under sections 80C to 80U
3. Calculate your Tax Payable as per Income Tax slabs
4. Deduct the amount of rebate allowed

What is the difference between the Financial Year and Assessment Year?

The Financial Year is the year which begins on 1st April and ends on 31st March. It is the year in which income is earned by the taxpayer. The Assessment Year is a year immediately following the Financial Year. The taxpayer needs to file the Income Tax Return (ITR) not in the year in which he/she earns the income but after the end of that year i.e, in the assessment year.