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.
Table of Content
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
|
No. |
Income Slab |
Income Tax rate |
|
1. |
Upto 250,000 |
Nil |
|
2. |
250,000 to 500,000 |
5% of the amount exceeding 250,000 |
|
3. |
500,000 to 1,000,000 |
Rs.12,500 + 20% of the amount exceeding 500,000 |
|
4. |
1,000,000 & above |
Rs.112,500 + 30% of the amount exceeding 1,000,000 |
Income tax rates/slabs for Senior citizens(above 60 years but below 80 years)
|
No. |
Income Slab |
Income Tax rate |
|
1. |
Upto 300,000 |
Nil |
|
2. |
300,000 to 500,000 |
5% of the amount exceeding 300,000 |
|
3. |
500,000 to 1,000,000 |
Rs.10,000 + 20% of the amount exceeding 500,000 |
|
4. |
1,000,000 & above |
Rs.110,000 + 30% of the amount exceeding 1,000,000 |
Income tax rates/slabs for very senior citizens (above the age of 80 years)
|
No. |
Income Slab |
Income Tax rate |
|
1. |
Upto 500,000 |
Nil |
|
2. |
500,000 to 1,000,000 |
20% of the amount exceeding 500,000 |
|
3. |
1,000,000 & above |
Rs.100,000 + 30% of the amount exceeding 1,000,000 |
Income Tax rates/slabs for Individuals and HUF- As per the new Regime
|
No. |
Income Slab |
Income Tax rate |
|
1. |
Upto 250,000 |
Nil |
|
2. |
250,000 to 500,000 |
5% of the amount exceeding 250,000 |
|
3. |
500,000 to 7,50,000 |
Rs.12,500 + 10% of the amount exceeding 500,000 |
|
4. |
7,50,000 to 1,000,000 & above |
Rs.37,500 + 15% of the amount exceeding 750,000 |
|
5. |
1,000,000 to 1,250,000 |
Rs.75,000 + 20% of the amount exceeding 1,000,000 |
|
6. |
1,250,000 to 1,500,000 |
Rs.125,000 + 25% of the amount exceeding 1,250,000 |
|
7. |
1,500,000 & above |
Rs.187,500 + 30% of the amount exceeding 1,500,000 |
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
|
No. |
Income Slab |
Income Tax rate |
|
1. |
Upto Rs. 10,000 |
10% of the income |
|
2. |
Rs. 10,000 – Rs. 20,000 |
Rs. 1000 + 20% of (total income minus Rs. 10,000) |
|
3. |
Above Rs. 20,000 |
Rs. 3,000 + 30% of (total income minus Rs.20,000) |
Income tax rates/slabs for Local Authority
|
No. |
Income Slab |
Income Tax rate |
|
1. |
Total Income |
30% |
Income tax rates/slabs for Partnership Firm & LLP
|
No. |
Income Slab |
Income Tax rate |
|
1. |
Total Income |
30% |
Income tax rates/slabs for Domestic Company
|
No. |
particulars |
Income Tax rate |
|
1. |
Company opting for section 115BA |
25% |
|
2. |
Gross turnover upto 250 Cr. in the previous year |
25% |
|
3. |
Company opting for section 115BAA |
22% |
|
4. |
Company opting for section 115BAB |
15% |
|
5. |
Gross turnover exceeding 250 Cr. in the previous year |
30% |
Income tax rates/slabs or Foreign Company
|
No. |
Income Slab |
Income Tax rate |
|
On total income as consists of (a) royalties received from government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after 31-3-1961 but before 1-4-1976; or (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after 29-2-1964 but before 1-4-1976, and where such agreement has, in either case, been approved by the Central Government |
50% |
|
|
On the balance, if any, of the total income |
40% |
-
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.
-
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)
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