Income Tax Slab for AY 2021-22 for Individuals:-
1. Income tax slab rate for Individual (resident or non-resident), who is age of less than 60 years on the last day of the relevant previous year i.e. individual who is age of less than 60 years as on 31st March 2021.
| Net Income (Gross Income – Deduction) | Income Tax Rate |
| Upto INR 2,50,000 | Nil |
| INR 2,50,001 to INR 5,00,000 | 5% |
| INR 5,00,001 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
The above tax rate also applies to a HUF (Hindu Undivided family), AOP (Association of persons), BOI (Body of individuals) whether incorporated or not.
2. Income tax slab rate for AY 2021-22 for Resident senior citizen :- Individual who is resident in India and who is of the age of 60 years or more but less than 80 years at any time during the previous year.
| Net Income (Gross Income – Deduction) | Income Tax Rate |
| Upto INR 3,00,000 | Nil |
| INR 3,00,001 to 5,00,000 | 5% |
| INR 5,00,001 to 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
3. Income tax slab for AY 2021-22 for Resident super senior citizen:- Individual who is resident in India and who is of the age of 80 years of more at any time during the previous year.
| Net Income (Gross Income – Deduction) | Income Tax Rate |
| Upto INR 5,00,000 | Nil |
| INR 5,00,001 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
In addition to income tax amount calculation with the help of above slab rate tax payer has to pay following amount of surcharge and cess:-
a. Heath and Education cess levied at the rate of 4% on the amount of income Tax plus surcharge
b. Surcharge at the rate of 10% of income tax is applicable where the total income exceeds INR 50 Lakh and upto INR 1 Crore.
c. Surcharge at the rate of 15% of income tax is applicable where the total income exceeds INR 1 Crore and upto INR 1 Crore.
d. Surcharge at the rate of 25% of income tax is applicable where the total income exceeds INR 2 Crore and upto INR 5 Crore.
e. Surcharge at the rate of 37% of income tax is applicable where the total income exceeds INR 5 Crore and above.
Rebate u/s 87A of Income Tax:- If total income does not exceeds INR 5,00,000 then resident Individual may claim rebate u/s 87A. The amount of rebate shall be INR 12,500 or 100% of Income tax, whichever is less.
Special Income Tax Slab for AY 2021-22 for Individuals and HUFs:- The Finance Act 2020 has introduce new tax regime through section 115BAC. Section 115BAC provides an option to Individuals and HUFs for payment of taxes at the following reduce rates from AY 2021-21 and onwards:-
| Gross Income | Income Tax Rate |
| Upto INR 2,50,000 | Nil |
| INR 2,50,001 to INR 5,00,000 | 5% |
| INR 5,00,001 to INR 7,50,000 | 10% |
| INR 7,50,001 to 10,00,000 | 15% |
| INR 10,00,001 to INR 12,50,000 | 20% |
| INR 12,50,001 to INR 15,00,000 | 25% |
| Above INR 15,00,000 | 30% |
The above slab rate (Section 115BAC) shall be applicable only if the total income of assessee is calculated without claiming specified exemptions or deductions.
In addition to the income tax amount calculated based on above mentioned slab rate the assessee are required to pay surcharge and Health education cess as discussed above.
Partnership Firm / LLP Tax Rate:- A partnership firm / LLP is taxable at the rate of 30%. If total income exceeds INR 1 Crore then surcharge shall be charged at the rate of 12% on income tax subject to marginal relief. Heath and Education cess shall be charged at the rate of 4% on the amount of income Tax plus surcharge.
Special tax rates under Chapter XII
Section 111 of Income tax Act:- Tax on accumulated balance of a registered provided fund which is included in the total income of an employee owing to provision of Rule 8 of part A not being applicable.
Applicability – Section 111 of Income tax applicable to Individual.
Tax Rate – Normal rate of tax
Section 111A of Income tax Act:- Tax on short term capital gain due to transfer of equity share, equity oriented fund, unit of a business trust on or after 1st April 2014 which have been charged to STT (Security Transaction Tax).
Applicability – Section 111A of the Income Tax Act applicable to all categories of tax payers.
Tax Rate – 15%
Section 112 of the Income Tax Act:- Tax on capital gain arising on transfer of Long Term Capital Gain.
Applicability – Section 112 of income tax applicable on all taxpayers including non-residents.
Tax Rate – 20% in case all taxpayers except non-residents
For non-resident tax rate shall be 10%, where long term capital gain includes gain from unlisted securities or share of a private company. In other case tax shall be charged at the rate of 20%.
Section 112A of Income Ta Act:- Tax on Long term capital gain due to transfer of equity share, equity oriented fund, unit of a business trust upon which STT (Security Transaction Tax) paid. Tax shall be charged only if long term capital gain exceeds INR 1 Lakh.
Applicability – Section 112A of income tax applicable on all categories of taxpayers.
Tax Rate – 10%
Also see, “Tax on Long Term Capital Gain on Equity Share”
Section 115ACA of Income Tax Act:- Tax on dividend on Global Depository Receipts of an Indian company engaged in specified knowledge based industry or service, issued under ESOP Scheme. Its does not cover divided referred to in section 115O. Section 115ACA also cover, tax on long term capital gain arising on transfer of Global depository receipts.
Applicability – Section 115ACA of income tax applicable on resident individual being employee of an Indian corporation engaged in specified knowledge based industry/service.
Tax Rate – 10%
Section 115B of Income Tax Act:- Tax on profit and gain arising from life insurance business.
Applicability – All categories of tax payers.
Tax Rate – 12.50%
Section 115BB of Income Tax Act:- Tax on income from winning of lottery, crossword puzzle, race, horse race, card or other games, gambling / betting of any nature.
Applicability – All categories of tax payers.
Tax Rate – 30%
Section 115BBC of Income Tax Act:- Tax on income by way of anonymous donation received in excess of the higher of the 5% of the donation received or INR one Lakh.
Applicability – Any person receiving on behalf of trust / institution referred in (iv), (v), (vi) and (via) of section 10(23C) or section 11.
Tax Rate – 30%
Section 115BBDA of Income Tax Act:- Tax on income by way of dividend exceeding INR 10 Lakh in aggregate.
Applicability – A resident assessee other than a domestic company, trust or institution referred in (iv), (v), (vi) and (vi) of section 10(23C) and trust or institution registered under section 12A or 12AA.
Tax Rate – 10%
Section 115BBE of Income Tax Act:- Tax on income referred in section 68, 69, 69A, 69B, 69C and 69D declared in return of income or added by the assessing officer.
Applicability – All category of Tax payers.
Tax Rate – 60%
Section 115BBF of Income Tax Act:- Tax on income by way of royalty in respect of a patent developed and registered in India.
Applicability – A resident patentee assessee.
Tax Rate – 10%
Section 115BBG of Income Tax Act:- Tax on income by way of transfer of carbon credit.
Applicability – All categories of tax payers
Tax Rate – 10%
Also See, “Tax Exemptions for startups”
Also See, “Equalisation levy with examples”
Also See, “ TDS Rate charts for F.Y. 2021.22”
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