The income tax slab for AY 2021-22 below applies to individuals (resident or non-resident), HUF, Association of Person or Body of Individual, companies, partnership firms and companies. The income tax rate depends on the income slab that your income falls under and whether you opt for New or Old tax regime.
We have provided the tax slabs under the existing tax regime and the new tax regime to help you choose a suitable tax regime. Also, you may use the income tax calculator to find out your total tax liability.
Latest update
Table of Contents
Last Date to file ITR Extended
As per the latest update, the CBDT has extended the last date to file ITR for salaried individuals to 15th March 2022 from 31st December 2021.
Key Points
| – Income Tax Slabs in India are determined based on different income ranges of individuals. |
| – As per the Income Tax Act, Taxpayers are classified into 3 categories- Individuals below 60 years, Senior Citizens and Super Senior Citizens. |
| -The Income Tax Slabs Old regime has different tax rates for different categories of taxpayers. |
| – New Income Tax Slabs prescribes the same tax rate for all categories of taxpayers. |
| – The timing and the frequency to choose between the old tax regime and the new tax regime differs based on your source of income. |
| – Compare New Tax Regime Vs Old Tax Regime and opt for the one that fits you. |
| – If your taxable income is below Rs 5,00,000, you can claim tax rebate of Rs 12,500 under section 87A under new and old regimes. |
New Tax Regime Vs Old Tax Regime
| Old Tax Regime | |
| You can pay tax at a concessional rate. | You must pay tax at a higher rate. |
| Cannot claim any tax deductions | Can claim tax deductions. |
| Standard deduction of Rs 50,000 is not available | A standard deduction of Rs 50,000 is available. |
| A basic Income Tax exemption limit of up to Rs 2,50,000 is available for all age groups. | A basic Income Tax exemption limit of up to Rs 2,50,000 is available for all age groups. |
| The tax rate is the same for all age groups. | Senior citizen tax exemption limit of up to Rs 3,00,000 available. And up to Rs 5,00,000 for Super Senior Citizens is available. |
Now that you have an overview of the difference between the new and old tax regimes, we shall see in detail the deductions available under the two tax regimes.
Deductions allowable under the Old Tax Regime
You can claim the below tax deductions under the existing tax regime if you have done your tax planning for the year.
- House Rent Allowance
- Leave Travel Allowance
- Children Education Allownce
- Interest on Housing Loan
- Deductions under section 80C (EPF, LIC, PPF,ELSS)
- Deductions under section 80D (Health insurance premium)
- Deductions under section 80CCD (NPS)
Deductions allowable under the New Tax Regime
You can claim only the below deductions under the New Regime, and you cannot claim any other tax deductions available in the old tax regime.
- Transport allowance for specially abled people
- Conveyance allowance
- Deduction under section 80CCD (NPS)
- Deduction under section 80JJAA (employment of new employees)
- Depreciation under section 32 except additonal depreciation.
Who must opt for the New Tax Regime?
It is not mandatory to opt for the New Tax Regime, and however, you may choose to opt for the New Tax regime if it is beneficial to you. Let us now discuss the various points to see which one fits your needs.
- If you have not invested in any tax saving schemes then you may opt for New Tax Regime and pay tax at a concessional rate.
- The New Tax Regime is better if your income is up to Rs 15 lakhs. For an income above Rs 15,00,000 the Old Tax regime is the best fit.
- For Senior Citizens having taxable income of Rs 3,00,000, the old tax regime is the go to option as the basic exemption limit is Rs 3,00,000 compared to Rs 2,50,000 under the new tax regime.
- For Super Senior Citizens having taxable income of Rs 5,00,000, the old tax regime is the go to option as the basic exemption limit is Rs 5,00,000 compared to Rs 2,50,000 under the new tax regime..
Timing of Opting Old Regime or New Tax Regime
The timing to choose between old or new tax regimes differs based on your source of income.
- A salaried individual can opt for a new tax regime at the beginning of the financial year, and he has the choice to change the tax regime every year.
- If you have income from business or profession then you have the option to choose between old tax regime and the new tax regime only once and, you cannot change later.
Tax Rebate under Section 87A
The basic exemption limit given in the income tax slab under new and old regime remains the same. However, in the Budget 2021, the Government announced a one time relief for middle class tax payers. The tax rebate of Rs 12,500 is available under section 87A to individuals with taxable income below Rs 5 lakhs. Note that the tax rebate is available only for individuals who are residents and not HUFs. Furthermore, the rebate of tax is on taxable income excluding income gained from Short-term and Long-term Capital gains.
Income Tax Slabs 2020-21 for Salaried Individuals (Below 60 years)
The below tax slab applies to individuals (resident and non-resident) below 60 years. If you are a salaried individual, you must use the form ITR-1 to file your return before the income tax return filing due date.
New Income Tax Slab 2021-22
| Income | Income Tax Rate (New Regime) |
| Up to Rs 2,50,000 | – |
| Rs 2,50,001 to Rs 5,00,000 | 5% of taxable income |
| Rs 5,00,001 to Rs 7,50,000 | 10% of taxable income |
| Rs 7,50,001 to Rs 10,00,000 | Rs 37,500 + 15% of taxable income |
| Rs 10,00,001 to Rs 12,50,000 | Rs 75,000 + 20% of taxable income |
| Rs 12,50,001 to Rs 15,00,000 | Rs 1,25,000 + 25% of taxable income |
| Above Rs 15,00,000 | Rs 1,87,500 + 30% of taxable income |
Old Regime Income Tax Slab 2021-22
| Income | Income Tax Rate (Old Scheme) |
| Up to Rs 2,50,000 | – |
| Rs 2,50,001 to Rs 5,00,000 | 5% of taxable income |
| Rs 5,00,001 to Rs 7,50,000 | Rs 12,500 + 20% of taxable income |
| Rs 7,50,001 to Rs 10,00,000 | Rs 12,500 + 20% of taxable income |
| Rs 10,00,001 to Rs 12,50,000 | Rs 1,12,500 + 30% of taxable income |
| Rs 12,50,001 to Rs 15,00,000 | Rs 1,12,500 + 30% of taxable income |
| Above Rs 15,00,000 | Rs 1,12,500 + 30% of taxable income |
Income tax slab for Senior Citizens FY 2020-21
(Above 60 years and below 80 years)
The below income tax slab for ay 2021-22 for senior citizens applies to Senior individuals (resident and non-resident) above 60 years but below 80 years of age during the previous year.
Senior Citizen Tax Slab for FY 2020-21 (New Regime)
| Income | Income Tax Rate (New Regime) |
| Up to Rs 2,50,000 | – |
| Rs 2,50,001 to Rs 3,00,000 | 5% of taxable income |
| Rs 3,00,000 to Rs 5,00,000 | 5% of taxable income |
| Rs 5,00,001 to Rs 7,50,000 | 10% of taxable income |
| Rs 7,50,001 to Rs 10,00,000 | Rs 37,500 + 15% of taxable income |
| Rs 10,00,001 to Rs 12,50,000 | Rs 75,000 + 20% of taxable income |
| Rs 12,50,001 to Rs 15,00,000 | Rs 1,25,000 + 25% of taxable income |
| Above Rs 15,00,000 | Rs 1,87,500 + 30% of taxable income |
Senior Citizen Tax Slab for FY 2020-21 (Old Regime)
| Income | Income Tax Rate (Old Scheme) |
| Up to Rs 2,50,000 | – |
| Rs 2,50,001 to Rs 3,00,000 | – |
| Rs 3,00,000 to Rs 5,00,000 | 5% of taxable income |
| Rs 5,00,001 to Rs 7,50,000 | Rs 10,000 + 20% of taxable income |
| Rs 7,50,001 to Rs 10,00,000 | Rs 10,000 + 20% of taxable income |
| Rs 10,00,001 to Rs 12,50,000 | Rs 1,10,000 + 30% of taxable income |
| Rs 12,50,001 to Rs 15,00,000 | Rs 1,10,000 + 30% of taxable income |
| Above Rs 15,00,000 | Rs 1,10,000 + 30% of taxable income |
Income Tax Slabs 2020-21 for Super Senior Citizens (Above 80 years)
The below tax slab applies to Super senior individuals (resident and non-resident) above 80 years of age during the previous year.
| Income | Income Tax Rate (Old Scheme) | Income Tax Rate (New Regime) |
| Up to Rs 2,50,000 | – | – |
| Rs 2,50,001 to Rs 3,00,000 | – | 5% of taxable income |
| Rs 3,00,000 to Rs 5,00,000 | – | 5% of taxable income |
| Rs 5,00,001 to Rs 7,50,000 | 20% of taxable income | 10% of taxable income |
| Rs 7,50,001 to Rs 10,00,000 | Rs 10,000 + 20% of taxable income | Rs 37,500 + 15% of taxable income |
| Rs 10,00,001 to Rs 12,50,000 | Rs 1,00,000 + 30% of taxable income | Rs 75,000 + 20% of taxable income |
| Rs 12,50,001 to Rs 15,00,000 | Rs 1,00,000 + 30% of taxable income | Rs 1,25,000 + 25% of taxable income |
| Above Rs 15,00,000 | Rs 1,00,000 + 30% of taxable income | Rs 1,87,500 + 30% of taxable income |
Surcharge and Health & Education cess for Individuals/ Senior citizens/ Super Senior Citizens
The rate of surcharge and health and education cess remains the same for all under both the tax regimes. And Health and education cess is calculated at 4% of the amount of income tax, including surcharge.
| Income | Surcharge rate |
| Rs 50 lakhs to Rs 1 crore | 10% |
| Rs 1 crore to Rs 2 crores | 15% |
| Rs 2 crores to Rs 5 crores | 25% |
| Above 5 crores | 37% |
HUF Tax Slab (New & Old Regime)
| Income | Income Tax Rate (New Regime) | Income Tax Rate (Old Scheme) |
| Up to Rs 2,50,000 | – | – |
| Rs 2,50,001 to Rs 5,00,000 | 5% | 5% |
| Rs 5,00,001 to Rs 7,50,000 | 10% of taxable income – Rs 12,500 (tax relief) | Rs 12,500 + 20% of taxable income |
| Rs 7,50,001 to Rs 10,00,000 | Rs 37,500 + 15% of taxable income | Rs 12,500 + 20% of taxable income |
| Rs 10,00,001 to Rs 12,50,000 | Rs 75,000 + 20% of taxable income | Rs 1,12,500 + 30% of taxable income |
| Rs 12,50,001 to Rs 15,00,000 | Rs 1,25,000 + 25% of taxable income | Rs 1,12,500 + 30% of taxable income |
| Above Rs 15,00,000 | Rs 1,87,500 + 30% of taxable income | Rs 1,12,500 + 30% of taxable income |
Income tax slab for Partnership Firm for FY 2020-21
The Government has not provided any concessional tax rate for the partnership firm. Therefore, a partnership firm including LLP will be taxable at the usual tax rate.
| Income | IncomeTax Rate |
| Any income | 30% |
Income tax slab for Domestic Companies under the Old Tax Regime for FY 2020-21
The income tax rate for companies for the assessment year 2021-22 is given below.
| Income | Income Tax Rate (Old Scheme) |
| If Total turnover in the previous year 2018-19 does not exceed Rs 400 crore | 25% |
| If Total turnover in the previous year 2019-20 does not exceed Rs 400 crore | NA |
| Any other domestic company | 30% |
Income tax slab for Domestic Companies under the New Tax Regime for FY 2020-21
| Particulars | Income Tax Rate (New Scheme) |
| If the company opts for section 115BA | 25% |
| If the company opts for section 115BAA | 22% |
| If the company opts for section 115BAB | 15% |
Income tax slab for Foreign Companies FY 2020-21
| Nature of income | Tax rate |
| Royalty received from the Government or an Indian concern as per the agreement made before 1st April 1976 | 50% |
| Any other income | 40% |
Income tax slab for Co-operative Society for FY 2020-21
| Taxable income | Income Tax Rate (Old Scheme) | Income Tax Rate (New Regime) |
| Up to Rs 10,000 | 10% | 22% |
| Rs 10,000 to Rs 20,000 | 20% | 22% |
| Above Rs 20,000 | 30% | 22% |
Faqs
1. Can I file my Income-tax return now?
You can file your income tax return anytime before the due date.
2. Is there a separate income tax slab for females for FY 2020-21?
The income tax slab for FY 2020-21 is the same for both males and females.
3. What is the income tax slab for senior citizens for FY 2020-21?
The income tax slab under the new tax regime is the same across all age groups. However, under the existing tax regime, there is a different income tax slab based on age.
4. Is it mandatory to opt for the new tax regime?
A taxpayer can choose between the new tax regime and the existing tax regime based on the one beneficial to him.
5. Is standard deduction available for FY 2020-21?
A standard deduction of Rs 50,000 is available only under the existing tax regime.
6. When can I opt for the New Tax regime?
If you are a salaried individual, you have the option to choose the new tax regime at the beginning of the financial year and change it next year. However, if you are a businessman or a professional, you have the option to choose between New tax regime and the old tax regime only once.
7. How is the income tax calculated?
The income tax is calculated on the basis of the applicable income tax slab by considering all your sources of income for the period starting from the 1st April 2020 to the end of 31st March 2021 for the financial year 2020-21.
8. Who is eligible for rebate u/s 87A?
If your taxable income after claiming deductions under chapter VI-A is less than Rs 5 lakhs, you are eligible for rebate of Rs 12,500 under section 87A.
9. How can I claim rebate under section 87A?
While filing your income tax return, you can claim a refund of up to Rs 12,500 if you have paid any TDS.
Knowing your income tax slab for 2021-22 will help you do the tax planning well for the financial year.