{"id":49275,"date":"2021-04-22T12:23:17","date_gmt":"2021-04-22T06:53:17","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=49275"},"modified":"2021-04-22T12:23:21","modified_gmt":"2021-04-22T06:53:21","slug":"income-tax-slab-rate-for-fy-2021-22","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/income-tax-slab-rate-for-fy-2021-22\/","title":{"rendered":"All you need to know about Income Tax Slab Rate for FY 2021-22"},"content":{"rendered":"<p>Income tax is a direct tax that applies to individuals earning income based on salary &amp; other sources. The Finance Minister presents in the budget income tax rate every year. In this article, we will cover the income tax slab rate for FY 2021 &ndash; 22.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What is Income Tax Slab?<\/h2>\n\n\n\n<p>Income tax is a tax levied on taxpayers based on the slab system set by the government every year, and the slab rate is communicated to the public through a budget presented at the end of an FY.<\/p>\n\n\n\n<p>The slab tax rate is different tax rates prescribed for various income ranges, which means the tax rates increases with an increase in the taxpayer&rsquo;s income.<\/p>\n\n\n\n<p>Income tax has classified 3 categories of individual taxpayers. <em>The categories are:<\/em><\/p>\n\n\n\n<ul><li>Individuals less than 60 years that includes residents &amp; non &ndash; residents;<\/li><li>Senior citizens between 60 years &amp; 80 years;<\/li><li>Super senior citizens more than 80 years.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">Income Tax Slab Rate for FY 2021-22<\/h2>\n\n\n\n<p><em>The Income tax slab rate for an FY 2021 &ndash; 22 is:<\/em><\/p>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"180\">\n<p><strong>Income Tax Slab<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p><strong>New regime Income Tax Slab Rate for FY 2020 &ndash; 21<\/strong><\/p>\n<p><strong>(applies to all individuals &amp; HUF)<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>Up to Rs. 2,50,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>Nil<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>Between Rs. 2,50,000 &amp; Rs. 3,00,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>5% (tax rebate under section 87a is available)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>Between Rs. 3,00,000 &amp; Rs. 5,00,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>5% (tax rebate under section 87a is available)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>Between Rs. 5,00,000 &amp; Rs. 7,50,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>10%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>Between Rs. 7,50,000 &amp; Rs. 10,00,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>15%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>Between Rs.10,00,000 &amp; Rs. 12,50,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>20%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>Between Rs. 12,50,000 &amp; Rs. 15,00,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>25%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"180\">\n<p><strong>More than Rs. 15,00,000<\/strong><\/p>\n<\/td>\n<td width=\"406\">\n<p>30%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p><em>A few points to be noted:<\/em><\/p>\n\n\n\n<ul><li>No increased exemption benefit is available to any of the categories of the taxpayer.<\/li><li>Basic exemption of Rs. 2,50,000 is given to NRI<\/li><li>An additional 4% health &amp;education cess will apply on the tax amount.<\/li><li><em>The surcharge will also apply:<\/em><ul><li>10% of income tax, when the total income is less than Rs. 50 lakh<\/li><li>15% of income tax, when the income is less than Rs. 1 crore<\/li><li>25% of income tax, when the income is less than Rs. 2 crore<\/li><li>37% of income tax, when the income is less than Rs. 5 crore<\/li><\/ul><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Why is the income tax slab rate for FY 2021-22 optional?<\/h3>\n\n\n\n<p><em>The taxpayer has the option to choose either:<\/em><\/p>\n\n\n\n<ul><li>To pay the <strong><a href=\"https:\/\/enterslice.com\/income-tax-return-filing\">income tax<\/a><\/strong> at a lower rate as per the new tax regime on a condition that the taxpayer has to forgo the exemptions &amp; deductions available under the income tax; or<\/li><li>To continue to pay taxes on the current tax rates &amp; can avail the rebates &amp; exemptions by choosing the old regime &amp; pay tax at a higher rate.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">What is the old tax regime for FY 2021?<\/h3>\n\n\n\n<p><em>The old tax regime for FY 2021-22 for the category of taxpayers are:<\/em><\/p>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"156\">\n<p><strong>Income Tax Slab<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p><strong>Individuals less than 60 years<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p><strong>Senior citizens between 60 years &amp; 80 years<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p><strong>Super senior citizens above 80 years<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"156\">\n<p><strong>Up to Rs. 2,50,000<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"156\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"156\">\n<p>Nil<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"156\">\n<p><strong>Between Rs. 2,50,000 &amp; Rs. 5,00,000<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p>5%<\/p>\n<\/td>\n<td width=\"156\">\n<p>5%<\/p>\n<\/td>\n<td width=\"156\">\n<p>Nil<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"156\">\n<p><strong>Between Rs. 5,00,000 &amp; Rs. 10,00,000<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p>20%<\/p>\n<\/td>\n<td width=\"156\">\n<p>20%<\/p>\n<\/td>\n<td width=\"156\">\n<p>20%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"156\">\n<p><strong>More than Rs. 10,00,000<\/strong><\/p>\n<\/td>\n<td width=\"156\">\n<p>30%<\/p>\n<\/td>\n<td width=\"156\">\n<p>30%<\/p>\n<\/td>\n<td width=\"156\">\n<p>30%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p><em>There are few points to be noted:<\/em><\/p>\n\n\n\n<ul><li>An additional 4% health &amp; education cess will apply to the tax amount.<\/li><li>The surcharge will also apply:<ul><li>10% of income tax, when the total income ranges between Rs. 50 lakhs &amp; Rs 1 crore.<\/li><li>15% of income tax, when the income is above Rs. 1 crore.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">New Income Tax regime vs Old Income Tax regime<\/h2>\n\n\n\n<p><em>The difference between the new &amp; old tax regime is:<\/em><\/p>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"104\">\n<p><strong>Income Tax Slab<\/strong><\/p>\n<\/td>\n<td colspan=\"3\" width=\"312\">\n<p><strong>Existing regime tax rate slab for FY 2020-21&amp; FY 2021-22<\/strong><\/p>\n<\/td>\n<td width=\"151\">\n<p><strong>New regime tax rate slab for FY 2021-22<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>&nbsp;<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p><strong>Resident Individuals &amp; HUF less than 60 years of age &amp; NRI<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p><strong>Resident Individuals &amp; HUF above 60 years &amp; less than 80 years<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p><strong>Resident Individuals &amp; HUF above 80 years of age<\/strong><\/p>\n<\/td>\n<td width=\"151\">\n<p><strong>Applies to all individuals &amp; HUF<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>Up to Rs. 2,50,000<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"104\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"104\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"151\">\n<p>Nil<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>Between Rs. 2,50,000 &amp;Rs. 3,00,000<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p>5% (tax rebate u\/s 87a is available)<\/p>\n<\/td>\n<td width=\"104\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"104\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"151\">\n<p>5% (tax rebate u\/s 87a is available)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>Between Rs. 3,00,000 &amp; Rs. 5,00,000<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p>5% (tax rebate u\/s 87a is available)<\/p>\n<\/td>\n<td width=\"104\">\n<p>5% (tax rebate u\/s 87a is available)<\/p>\n<\/td>\n<td width=\"104\">\n<p>Nil<\/p>\n<\/td>\n<td width=\"151\">\n<p>5% (tax rebate u\/s 87a is available)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>Between Rs. 7,50,000 &amp; Rs. 10,00,000<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p>20%<\/p>\n<\/td>\n<td width=\"104\">\n<p>20%<\/p>\n<\/td>\n<td width=\"104\">\n<p>20%<\/p>\n<\/td>\n<td width=\"151\">\n<p>15%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>Between Rs. 10,00,000 &amp; Rs. 12,50,000<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"151\">\n<p>20%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>Between Rs. 12,50,000 &amp; Rs. 15,00,000<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"151\">\n<p>25%<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"104\">\n<p><strong>More than Rs. 15,00,000<\/strong><\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"104\">\n<p>30%<\/p>\n<\/td>\n<td width=\"151\">\n<p>30%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\">How to calculate Income Tax from Income Tax Slabs?<\/h2>\n\n\n\n<p>Let us understand how to <strong><a href=\"https:\/\/enterslice.com\/income-tax-calculator\">calculate income tax<\/a><\/strong> from income tax slab rates through an example.<\/p>\n\n\n\n<p>Akash has a total taxable income of Rs. 8 lakhs, calculated by including all the incomes from salary, rental, and interest income. The amount has also been deducted under section 80 of the Act.<\/p>\n\n\n\n<p><em>Now, as per the income tax rate slab, the income tax is calculated as:<\/em><\/p>\n\n\n\n<table>\n<tbody>\n<tr>\n<td width=\"170\">\n<p><strong>Income Tax Slabs<\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p><strong>Tax Rate<\/strong><\/p>\n<\/td>\n<td width=\"113\">\n<p><strong>Tax calculation<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"170\">\n<p><strong>Income up to Rs. 2,50,000<\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p>No tax<\/p>\n<\/td>\n<td width=\"113\">\n<p>&mdash;<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"170\">\n<p><strong>Income between Rs. 2,50,000 &amp; Rs. 5,00,000<\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p>5% (Rs. 5,00,000 &ndash; Rs. 2,50,000)<\/p>\n<\/td>\n<td width=\"113\">\n<p>Rs. 12,500<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"170\">\n<p><strong>Income between Rs. 5,00,000 &amp; Rs. 10,00,000<\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p>20% (Rs. 5,00,000 &ndash; Rs. 5,00,000)<\/p>\n<\/td>\n<td width=\"113\">\n<p>Rs. 60,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"170\">\n<p><strong>Income more than Rs. 10,00,000<\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p>30%<\/p>\n<\/td>\n<td width=\"113\">\n<p>Nil<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"170\">\n<p><strong>Tax <\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"113\">\n<p>Rs. 72,500<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"170\">\n<p><strong>Cess <\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p>4% of Rs. 72,500<\/p>\n<\/td>\n<td width=\"113\">\n<p>Rs. 2,900<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"170\">\n<p><strong>Total tax payable<\/strong><\/p>\n<\/td>\n<td width=\"161\">\n<p>&nbsp;<\/p>\n<\/td>\n<td width=\"113\">\n<p>Rs. 75,400<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<p>Akash is an individual taxpayer, having Rs. 2, 50,000 as income tax exemption. For other taxpayers, i.e., senior &amp; super senior citizens, Rs. 3, 00,000 &amp; Rs. 5, 00,000 respectively, avail income tax exemption.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion<\/h2>\n\n\n\n<p>Income tax is levied on every taxpayer&rsquo;s taxable income earned from salary, rent, or other sources. The tax is calculated based on the income tax slab rate. Thus, it is very important for the <strong>taxpayers<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Taxpayer\"><strong>[1]<\/strong><\/a><\/sup> to know about the slab rates.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/enterslice.com\/learning\/faceless-hearing-under-income-tax-act\/\">Faceless Hearing under Income Tax Act<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Income tax is a direct tax that applies to individuals earning income based on salary &amp; other sources. The Finance Minister presents in the budget income tax rate every year. In this article, we will cover the income tax slab rate for FY 2021 &ndash; 22. What is Income Tax Slab? Income tax is a [&hellip;]<\/p>\n","protected":false},"author":55,"featured_media":49282,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1473,2435],"tags":[3903],"acf":{"service_id":"46"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Income Tax Slab Rate for FY 2021-22 - Enterslice Private Limited<\/title>\n<meta name=\"description\" content=\"The tax is calculated based on the income tax slab rate. 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I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.","postViews":497,"readingTime":4,"nextPost":{"id":49294,"slug":"legal-compliances-for-an-indian-start-up"},"prevPost":{"id":49261,"slug":"amendments-in-custom-duty-in-the-budget-2021-22"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2021\/04\/All-you-need-to-know-about-Income-Tax-Slab-Rate-for-FY-2021-22.jpg","postTerms":"Income Tax","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/49275"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=49275"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/49275\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/49282"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=49275"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=49275"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=49275"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}