Rates Of Income Tax


The Finance Minister Nirmala Sitharaman introduced new tax regime in union budget 2020. Where in there is an option for individuals and Hindu undivided families (HUF) to select tax slaps as per Old Tax Slabs or New Tax Slabs.

Slab system means different tax rates are prescribed for different rates of income. Which means tax rates keep increasing with increase in taxpayer’s income.

These tax slabs are different for different categories of taxpayers. Income Tax Department has classified three categories of individual tax payers.

  1. Individuals aged less than of 60 years (including residents and non-residents)
  2. Resident Senior citizens (60 to 80 years of age)
  3. Resident Super senior citizens (aged more than 80 years)

The below table explains the Income Tax Slabs and Rates for the FY 2021-22 (AY 2022-23) comparing the New Tax Regime and Old Tax Regime.

Income Tax Slab Rates for the FY 2021-22 (AY 2022-23)

Assessment year : 2022 -23  Previous year : 2021- 22  

1. Income Tax Rates for Individuals aged less than of 60 years (including residents and non-residents)

SL No.

Income Tax Slab As per Old Regime

Tax Rates as Per Old Regime

SL No.

Income Tax Slab As per New Regime

Tax Rates as Per New Regime

1

Upto Rs 2,50,000

NIL

1

Upto Rs 2,50,000

NIL

2

Rs 2,50,001 - Rs 5,00,000

5%

2

Rs 2,50,001 - Rs 5,00,000

5%

3

Rs 5,00,001 - Rs 10,00,000

20%

3

Rs 5,00,001 - Rs 7,50,000

10%

4

Rs 7,50,001 - Rs 10,00,000

15%

4

Above Rs 10,00,000

30%

5

Rs 10,00,001 - Rs 12,50,000

20%

6

Rs 12,50,001 - Rs 15,00,000

25%

7

Above Rs 15,00,000

30%

2. Income Tax Rates for Resident Senior citizens (60 to 80 years of age)

SL No.

Income Tax Slab As per Old Regime

Tax Rates as Per Old Regime

SL No.

Income Tax Slab As per New Regime

Tax Rates as Per New Regime

1

Upto Rs 3,00,000

NIL

1

Upto Rs 2,50,000

NIL

2

Rs 3,00,001 - Rs 5,00,000

5%

2

Rs 2,50,001 - Rs 5,00,000

5%

3

Rs 5,00,001 - Rs 10,00,000

20%

3

Rs 5,00,001 - Rs 7,50,000

10%

4

Rs 7,50,001 - Rs 10,00,000

15%

4

Above Rs 10,00,000

30%

5

Rs 10,00,001 - Rs 12,50,000

20%

6

Rs 12,50,001 - Rs 15,00,000

25%

7

Above Rs 15,00,000

30%

3. Income Tax Rates for Resident Super senior citizens (aged more than 80 years)

SL No.

Income Tax Slab As per Old Regime

Tax Rates as Per Old Regime

SL No.

Income Tax Slab As per New Regime

Tax Rates as Per New Regime

1

Upto Rs 5,00,000

NIL

1

Upto Rs 2,50,000

NIL

2

Rs 2,50,001 - Rs 5,00,000

5%

2

Rs 5,00,001 - Rs 10,00,000

20%

3

Rs 5,00,001 - Rs 7,50,000

10%

4

Rs 7,50,001 - Rs 10,00,000

15%

3

Above Rs 10,00,000

30%

5

Rs 10,00,001 - Rs 12,50,000

20%

6

Rs 12,50,001 - Rs 15,00,000

25%

7

Above Rs 15,00,000

30%

Note: Rebate u/s 87A, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less.

Surcharge on Income Tax computed on Other Incomes : 
10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding  50 Lacs upto 1 Crore 
15% for Individual having taxable Income
(Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore

25% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore 

37% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore

Surcharge on Income Tax computed on Dividend Income & Income taxable u/s 111A & 112A : 

10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding  50 Lacs upto 1 Crore 
15% for Individual having taxable Income
(Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore

15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore 

15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Firms

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge.

Companies

(A) Domestic Companies

Income tax :

If opted for Section 115BA (in case turnover or gross receipt does not exceed Rs 400 crore in the FY 2019-20) - 25%

If opted for Section 115BAA (in case assessee is not claming Profit linked deductions, unabsorbed depreciation & Losses) - 22%

If opted for Section 115BAB (for new manufacturing companies) -15%

Any other domestic company -30% 

MAT- 15%

Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Health and Education Cess: 4% on the amount of Tax plus surcharge 

(B) Foreign Companies

Income tax :

40% (in general )

50% (Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government)

Surcharge :

2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores

Health and Education Cess:             4% on the amount of Tax plus surcharge

Cooperative Socities (Under Old Regime)

Upto Rs. 10,000

10%

Rs. 10,001 to Rs. 20,000

20%

Rs. 20,001 to Above

30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge

Cooperative Socities (Under New Regime) -Section 115BAC

Income tax : Flat rate of 22%

Surcharge : 10% of the Income Tax

Health and Education Cess: 4% on the amount of Tax plus surcharge

Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

 

Income Tax Slab Rates for the FY 2020-21 (AY 2021-22)

Assessment year : 2021-22   Previous year : 2020-21 

1. Income Tax Rates for Individuals aged less than of 60 years (including residents and non-residents)

SL No.

Income Tax Slab As per Old Regime

Tax Rates as Per Old Regime

SL No.

Income Tax Slab As per New Regime

Tax Rates as Per New Regime

1

Upto Rs 2,50,000

NIL

1

Upto Rs 2,50,000

NIL

2

Rs 2,50,001 - Rs 5,00,000

5%

2

Rs 2,50,001 - Rs 5,00,000

5%

3

Rs 5,00,001 - Rs 10,00,000

20%

3

Rs 5,00,001 - Rs 7,50,000

10%

4

Rs 7,50,001 - Rs 10,00,000

15%

4

Above Rs 10,00,000

30%

5

Rs 10,00,001 - Rs 12,50,000

20%

6

Rs 12,50,001 - Rs 15,00,000

25%

7

Above Rs 15,00,000

30%

2. Income Tax Rates for Resident Senior citizens (60 to 80 years of age)

SL No.

Income Tax Slab As per Old Regime

Tax Rates as Per Old Regime

SL No.

Income Tax Slab As per New Regime

Tax Rates as Per New Regime

1

Upto Rs 3,00,000

NIL

1

Upto Rs 2,50,000

NIL

2

Rs 3,00,001 - Rs 5,00,000

5%

2

Rs 2,50,001 - Rs 5,00,000

5%

3

Rs 5,00,001 - Rs 10,00,000

20%

3

Rs 5,00,001 - Rs 7,50,000

10%

4

Rs 7,50,001 - Rs 10,00,000

15%

4

Above Rs 10,00,000

30%

5

Rs 10,00,001 - Rs 12,50,000

20%

6

Rs 12,50,001 - Rs 15,00,000

25%

7

Above Rs 15,00,000

30%

3. Income Tax Rates for Resident Super senior citizens (aged more than 80 years)

SL No.

Income Tax Slab As per Old Regime

Tax Rates as Per Old Regime

SL No.

Income Tax Slab As per New Regime

Tax Rates as Per New Regime

1

Upto Rs 5,00,000

NIL

1

Upto Rs 2,50,000

NIL

2

Rs 2,50,001 - Rs 5,00,000

5%

2

Rs 5,00,001 - Rs 10,00,000

20%

3

Rs 5,00,001 - Rs 7,50,000

10%

4

Rs 7,50,001 - Rs 10,00,000

15%

3

Above Rs 10,00,000

30%

5

Rs 10,00,001 - Rs 12,50,000

20%

6

Rs 12,50,001 - Rs 15,00,000

25%

7

Above Rs 15,00,000

30%

Note: Rebate u/s 87A, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less.

Surcharge : 
10% for Individual having taxable Income exceeding  50 Lacs upto 1 Crore 
15% for Individual having taxable Income exceeding 1 Crore but doesn’t exceed two crore rupees

25% for Individual having taxable Income exceeding 2 Crore but doesn’t exceed five crore rupees

37% for Individual having taxable Income exceeding 5 Crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Firms

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge.

Companies

(A) Domestic Companies

Income tax :

If opted for Section 115BA (in case turnover or gross receipt does not exceed Rs 400 crore in the FY 2018-19) - 25%

If opted for Section 115BAA (in case assessee is not claming Profit linked deductions, unabsorbed depreciation & Losses) - 22%

If opted for Section 115BAB (for new manufacturing companies) -15%

Any other domestic company -30% 

MAT- 15%

Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Health and Education Cess: 4% on the amount of Tax plus surcharge 

(B) Foreign Companies

Income tax :

40% (in general )

50% (Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government)

Surcharge :

2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores

Health and Education Cess:             4% on the amount of Tax plus surcharge

Cooperative Socities (Under Old Regime)

Upto Rs. 10,000

10%

Rs. 10,001 to Rs. 20,000

20%

Rs. 20,001 to Above

30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge

Cooperative Socities (Under New Regime) -Section 115BAC

Income tax : Flat rate of 22%

Surcharge : 10% of the Income Tax

Health and Education Cess: 4% on the amount of Tax plus surcharge

Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

 

Income Tax Slab Rates for the FY 2019-20 (AY 2020-21)

Assessment year : 2020 -21 
Previous year : 2019 - 20

1. For resident Senior Citizens. (Age above 60 Years)

Up to Rs 3,00,000

Nil

Rs. 3,00,001 to Rs. 5,00,000

 5%

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

2. For resident Super Senior Citizens. (Age above 80 Years)

Up to Rs 5,00,000

Nil

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).

Upto Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

 5%

Rs. 5,00,001 to Rs 10,00,000

20%

Above Rs. 10,00,000

30%

Note: Rebate u/s 87A, in which resident individuals are allowed rebate *(if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less. 

*( by Finance Act 2019)

Surcharge : 
10% for Individual having taxable Income exceeding  50 Lacs upto 1 Crore 
15% for Individual having taxable Income exceeding 1 Crore but doesn’t exceed two crore rupees

25% for Individual having taxable Income exceeding 2 Crore but doesn’t exceed five crore rupees

37% for Individual having taxable Income exceeding 5 Crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Short-Term Capital Gains u/s 111A: 10% (on income more than 50Lakh but upto 1 crore) &15% (on income above 1 Crore) plus surcharge.

Firms

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge.

Companies

(A) Domestic Companies

Income tax :

If opted for Section 115BA (in case turnover or gross receipt does not exceed Rs 400 crore in the FY 2017-18) - 25%

If opted for Section 115BAA (in case assessee is not claming Profit linked deductions, unabsorbed depreciation & Losses) - 22%

If opted for Section 115BAB (for new manufacturing companies) -15%

Any other domestic company -30% 

Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Health and Education Cess: 4% on the amount of Tax plus surcharge 

 

(B) Foreign Companies

Income tax :

40% (in general )

50% (Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government)

Surcharge :

2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores

Health and Education Cess:             4% on the amount of Tax plus surcharge

Cooperative Societies

Upto Rs. 10,000

10%

Rs. 10,001 to Rs. 20,000

20%

Rs. 20,001 to Above

30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge

Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

 

Income Tax Slab Rates for the FY 2018-19 (AY 2019-20)

Assessment year : 2017 - 18 
Previous year : 2016 - 17

1. For resident Senior Citizens. (Age above 60 Years)

Up to Rs 3,00,000

Nil

Rs. 3,00,001 to Rs. 5,00,000

10%

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

2. For resident Super Senior Citizens. (Age above 80 Years)

Up to Rs 5,00,000

Nil

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).

Upto Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

10%

Rs. 5,00,001 to Rs 10,00,000

20%

Above Rs. 10,00,000

30%

Note: Rebate u/s 87A is added from Finance Act 2013, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 5000 whichever less

Surcharge : 15% for Individual having taxable Income exceeding 1 Crore

Education Cess : 2% on income-tax plus surcharge.

Secondary and Higher Education cess : 1% on income-tax plus surcharge

Long-Term Capital Gains: 20% on income-tax plus surcharge.

Short-Term Capital Gains u/s 111A:15% on income-tax plus surcharge.

Firms

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Education Cess : 2% on income-tax plus surcharge

Secondary and Higher Education cess : 1% on income-tax plus surcharge

Companies

(A) Domestic Companies

Income tax : 30% (29% if turnover or gross receipt does not exceed Rs.5 Crore)
Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores
Education Cess: 2% on income-tax plus surcharge.
Secondary and Higher Education cess : 1% on income-tax plus surcharge

 

(B) Foreign Companies

Income tax :

40% (in general )

Surcharge :

2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores

Education Cess :

2% on income-tax plus surcharge

Secondary and Higher Education cess :

1% on income-tax plus surcharge

Cooperative Societies

Upto Rs. 10,000

10%

Rs. 10,001 to Rs. 20,000

20%

Rs. 20,001 to Above

30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Education Cess : 2% on income-tax.

Secondary And Higher EducationCess : 1% on income tax plus surcharge

Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Education Cess : 2% on income-tax plus surcharge.

Secondary and Higher Education cess : 1% on income-tax plus surcharge

    FAQ

  1. Do I have to mandatorily opt for New tax regime while filing returns for FY 21-22?
    No, opting for new tax regime is optional. You will have an option to either choose new tax regime or Old Tax Regime.
    If you are an employee, then the option to choose the Tax regime is to chosen at the starting of the year and it can be changed only in next year.
    In case of business and profession, the option to choose is available once in a Annual Year.

  2. Is the due date for filing an Income tax Return same for all the taxpayers?
    No, the due sate is not same for all tax payers
    For Individuals: The due date is 31st July of the assessment year
    For Businesses: The due date is 31st September of the assessment year

  3. How to file an Income tax return online?
    To submit your income tax return online you can reach out to us at BBNC Simple Tax Return Filing. We will help you complete the process.

  4. What is the time period considered for the calculation of income tax?
    Income tax is calculated on annual basis. It is calculated for the financial year starting from 1st April and ending on 31st March.

  5. Who decides the IT slab rates and can they change?
    Yes, IT slab rates can be changed. If there are changes in IT slab rates for the financial year then they are introduced in the Budget for that year and presented in Parliament.


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