Income Tax Rates Slab for FY 2021-22 or AY 2022-23 in India

Looking for the Income Tax slabs and rates for the financial year (FY) 2021-22 or Assessment year (AY) 2022-23 in India? This article might help you discover the Income Tax slab for AY 2021-22 and information on new tax regime.

What is Income tax Slab rates in India?  

Indian Income Tax System follows Income Tax slabs for levying the tax on the income of an individual or non-individual. Various slabs are accounted for.

In India, the income tax is charged on the income earned. This tax applies to the range of income, which is called Income Tax Slabs. The slabs of income tax keep changing from year to year. The Finance Minister announces the slab rates of Income Tax in the Union Budget each year. The Income Tax rates Slab in India can be categorized into four slabs,

• Income is chargeable to Nil rate of Tax;
• chargeable to 10%;
• Income chargeable to 20%; and
• chargeable to 30%.

Surcharge (EC) and secondary and higher secondary education cess (SHEC) are also charged over and above the tax.

Bifurcation of the income tax slab rate

1. By Gender

• Male; and
• Female.

2. By Age

• Resident; and
• Non-resident in India.

3. For Hindu Undivided Family (HUF)/ Association Of Person (AOP)/ Body Of Individual (BOI)/ Artificial Judicial Person (AJP)

4. On Non-individuals

• Partnership Firms or LLPs;
• Domestic Company;
• Foreign Company;
• Co-operative Societies; and
• Local Authorities.

Income Tax rates for FY 2021-22 for Individual

• With effect from FY 2020-21 (AY 2021-22) the HUFs and Individuals and HUFs have been given two alternative personal income tax regimes. According to which the Individual and HUF taxpayers can either continue with the old regime or choose to opt to new regime.
• It is completely optional for taxpayers to choose between the existing income tax regime (which allows availing existing income tax exemptions and deductions) and a new tax regime with slashed income tax rates and new income tax slabs but no tax exemptions and deductions.
• Also, as announced in the Union Budget 2021 the tax burden on senior citizens above 75 years has been reduced.
• Pensioners over 75 years of age are exempt from filing the Income Tax Returns.

Income tax rates/slabs for for Individuals- As Per the old Regime

• Individual men and women below the age of 60 years
• An HUF
• NRI
• Association of person, Body of Individuals and Artificial Judicial Person

Income tax rates/slabs for Senior citizens(above 60 years but below 80 years)

Income tax rates/slabs for very senior citizens (above the age of 80 years)

Income Tax rates/slabs for Individuals and HUF- As per the new Regime

Important Note: If you opt in for the new regime with slashed Income Tax rates, you need to forego certain tax exemptions.

Informative Read: The Tax exemptions and Deductions that will not be entertained in new tax regime .

Income Tax Rates For Non-Individual

Income tax rates/slabs for Co-operative Society

Income tax rates/slabs for Local Authority

Income tax rates/slabs for Partnership Firm & LLP

Income tax rates/slabs for Domestic Company

Income tax rates/slabs or Foreign Company

1. Surcharge on Income tax

• There will be 12% of surcharge on income tax payments by partnership firm, local authorities and co-operative society while
• For Domestic company If taxable income is more than Rs 1 crore but less than Rs 10 crore surcharge would be 7% and If taxable income is more than Rs 10 crore surcharge would be 12% and
• 2% on foreign Company if income is between 1 crore and 10 crores and 5% if income is greater than 10 crores.

2. Health and Education Cess on Income tax:

• The amount of income-tax shall be increased by health and Education Cess on Income Tax at the rate of 4% percent of the income-tax payable by both resident and non-resident assessees.

Hope this article was helpful. Suggested Read: TDS Rate chart for the FY 2021-22 (AY 2022-23)