Income Tax Slab for AY 2021-22 | All That You Need to Know

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 the suitable tax regime. Also, you may use the income tax calculator to find out your total tax liability.

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 rate 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 old tax regime and new tax regime differs based on your source of income.
– Compare New Tax Regime Vs Old Tax Regime and opt the one that fits you.

New Tax Regime Vs Old Tax Regime

  • New 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 deductionsCan claim tax deductions.
    Standard deduction of Rs 50,000 is not availableA 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.Income Tax exemption limit of up to Rs 3,00,000 for Senior citizens and up to Rs 5,00,000 for Super Senior Citizens.

    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.

    1. House Rent Allowance
    2. Leave Travel Allowance
    3. Children Education Allownce
    4. Interest on Housing Loan
    5. Deductions under section 80C (EPF, LIC, PPF,ELSS)
    6. Deductions under section 80D (Health insurance premium)
    7. 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.

    1. Transport allowance for specially abled people
    2. Conveyance allowance
    3. Deduction under section 80CCD (NPS)
    4. Deduction under section 80JJAA (employment of new employees)
    5. 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.

    1. 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.
    2. 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.
    3. 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.
    4. 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 regime 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.

    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 Tax Slab 2020-21

    IncomeIncome Tax Rate
    (New Regime)
    Up to Rs 2,50,000
    Rs 2,50,001 to Rs 5,00,0005%
    Rs 5,00,001 to Rs 7,50,000Rs 12,500 + 10% of taxable income
    Rs 7,50,001 to Rs 10,00,000Rs 37,500 + 15% of taxable income
    Rs 10,00,001 to Rs 12,50,000Rs 75,000 + 20% of taxable income
    Rs 12,50,001 to Rs 15,00,000Rs 1,25,000 + 25% of taxable income
    Above Rs 15,00,000Rs 1,87,500 + 30% of taxable income

    Old Regime Tax Slab 2020-21

    IncomeIncome Tax Rate
    (Old Scheme)
    Up to Rs 2,50,000
    Rs 2,50,001 to Rs 5,00,0005%
    Rs 5,00,001 to Rs 7,50,000Rs 12,500 + 20% of taxable income
    Rs 7,50,001 to Rs 10,00,000Rs 12,500 + 20% of taxable income
    Rs 10,00,001 to Rs 12,50,000Rs 1,12,500 + 30% of taxable income
    Rs 12,50,001 to Rs 15,00,000Rs 1,12,500 + 30% of taxable income
    Above Rs 15,00,000Rs 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 tax slab 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)

    IncomeIncome Tax Rate
    (New Regime)
    Up to Rs 2,50,000
    Rs 2,50,001 to Rs 3,00,0005% of taxable income
    Rs 3,00,000 to Rs 5,00,0005% of taxable income
    Rs 5,00,001 to Rs 7,50,000Rs 12,500 + 10% of taxable income
    Rs 7,50,001 to Rs 10,00,000Rs 37,500 + 15% of taxable income
    Rs 10,00,001 to Rs 12,50,000Rs 75,000 + 20% of taxable income
    Rs 12,50,001 to Rs 15,00,000Rs 1,25,000 + 25% of taxable income
    Above Rs 15,00,000Rs 1,87,500 + 30% of taxable income

    Senior Citizen Tax Slab for FY 2020-21 (Old Regime)

    IncomeIncome 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 5,00,0005% of taxable income
    Rs 5,00,001 to Rs 7,50,000Rs 10,000 + 20% of taxable income
    Rs 7,50,001 to Rs 10,00,000Rs 10,000 + 20% of taxable income
    Rs 10,00,001 to Rs 12,50,000Rs 1,10,000 + 30% of taxable income
    Rs 12,50,001 to Rs 15,00,000Rs 1,10,000 + 30% of taxable income
    Above Rs 15,00,000Rs 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.

    IncomeIncome Tax Rate
    (Old Scheme)
    Income Tax Rate
    (New Regime)
    Up to Rs 2,50,000
    Rs 2,50,001 to Rs 3,00,0005% of taxable income
    Rs 3,00,000 to Rs 5,00,0005% of taxable income
    Rs 5,00,001 to Rs 7,50,00020% of taxable incomeRs 12,500 + 10% of taxable income
    Rs 7,50,001 to Rs 10,00,000Rs 10,000 + 20% of taxable incomeRs 37,500 + 15% of taxable income
    Rs 10,00,001 to Rs 12,50,000Rs 1,00,000 + 30% of taxable incomeRs 75,000 + 20% of taxable income
    Rs 12,50,001 to Rs 15,00,000Rs 1,00,000 + 30% of taxable incomeRs 1,25,000 + 25% of taxable income
    Above Rs 15,00,000Rs 1,00,000 + 30% of taxable incomeRs 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.

    IncomeSurcharge rate
    Rs 50 lakhs to Rs 1 crore10%
    Rs 1 crore to Rs 2 crores15%
    Rs 2 crores to Rs 5 crores25%
    Above 5 crores37%

    HUF Tax Slab (New & Old Regime)

    IncomeIncome Tax Rate
    (New Regime)
    Income Tax Rate
    (Old Scheme)
    Up to Rs 2,50,000
    Rs 2,50,001 to Rs 5,00,0005% 5%
    Rs 5,00,001 to Rs 7,50,000Rs 12,500 + 10% of taxable incomeRs 12,500 + 20% of taxable income
    Rs 7,50,001 to Rs 10,00,000Rs 37,500 + 15% of taxable incomeRs 12,500 + 20% of taxable income
    Rs 10,00,001 to Rs 12,50,000Rs 75,000 + 20% of taxable incomeRs 1,12,500 + 30% of taxable income
    Rs 12,50,001 to Rs 15,00,000Rs 1,25,000 + 25% of taxable incomeRs 1,12,500 + 30% of taxable income
    Above Rs 15,00,000Rs 1,87,500 + 30% of taxable incomeRs 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.

    IncomeIncomeTax Rate
    Any income30%

    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.

    IncomeIncome Tax Rate
    (Old Scheme)
    If Total turnover in the previous year 2018-19 does not exceed Rs 400 crore25%
    If Total turnover in the previous year 2019-20 does not exceed Rs 400 croreNA
    Any other domestic company30%

    Income tax slab for Domestic Companies under the New Tax Regime for FY 2020-21

    ParticularsIncome Tax Rate
    (New Scheme)
    If the company opts for section 115BA25%
    If the company opts for section 115BAA22%
    If the company opts for section 115BAB15%

    Income tax slab for Foreign Companies FY 2020-21

    Nature of incomeTax rate
    Royalty received from the Government or an Indian concern
    as per the agreement made before 1st April 1976
    50%
    Any other income40%

    Income tax slab for Co-operative Society for FY 2020-21

    Taxable incomeIncome Tax Rate
    (Old Scheme)
    Income Tax Rate
    (New Regime)
    Up to Rs 10,00010%22%
    Rs 10,000 to Rs 20,00020%22%
    Above Rs 20,00030%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 the New Tax regime?

    If you are a salaried individual, you have the option to choose the new tax regime at the begining 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 old tax regime only once.

    7.How is the income tax calculated?

    The income tax is calculated 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.

    Knowing your income tax slab will help you do the tax planning well for the financial year.