Know Your Income Tax Rate – for A.Y. 2021-22 (For Individual, HUF, AOP, BOI, AJP and Firms)
1. Income Tax Slab Rate for AY 2021-22 for Individuals:
1.1 Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year or (HUF or AOP or BOI whether incorporated or not or every Artificial Juridical Person) (AJP):
| Net income range | Income-Tax rate |
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,000- Rs. 5,00,000 | 5% |
| Rs. 5,00,000- Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
1.2 Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:
| Net income range | Income-Tax rate |
| Up to Rs.. 3,00,000 | Nil |
| Rs. 3,00,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000- Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
1.3 Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:
| Net income range | Income-Tax rate |
| Up to Rs.5,00,000 | Nil |
| Rs.5,00,000- Rs.10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
1.4 Add:- In addition to the Income Tax amount calculated, based on the above-mentioned tax slabs, these assessees are required to pay Surcharge and Cess as under-
- Surcharge @ 10% of income tax is applicable where the total income exceeds Rs. 50 lakh and upto Rs.1 Crore.
- Surcharge @ 15% of income tax is applicable where the total income exceeds Rs.1 Crores and up to Rs.2 Crores.
- Surcharge @ 25% of income tax is applicable where the total income exceeds Rs.2 Crores and up to Rs.5 Crores.
- Surcharge @ 37% of income tax is applicable where the total income exceeds Rs.5 Crores and onwards.
- Health & Education Cess levied at the rate of 4% on the amount of Income-tax plus surcharge.
Note: –
1. For salaried persons (including pensioners) standard deduction of Rs.50,000/- or the amount of salary, whichever is less is allowed. [Sec 16ia)]
2. For persons receiving family pension deduction of thirty three and one-third percent of such pension or Rs.15,000/-, whichever is less, is allowed. [Sec 57iia)]
3. Rebate U/s 87A Rs.12,500/- or 100% of income tax, whichever is less, if total income does not exceed Rs.5,00,000/- (applicable for resident individual) [Sec 87A]
2. Special tax Rate for Individual and HUFs (New Personal Income-tax regime) (115BAC)
The Finance Act, 2020, has provided an option to Individuals and HUF for payment of taxes at the following reduced rates from assessment Year 2021-22 and onwards:
| Net income range | Income-Tax rate |
| Up to Rs.2,50,000 | Nil |
| Rs. 2,50,001 – Rs. 5,00,000 | 5% |
| Rs. 5,00,001- Rs.7,50,000 | 10% |
| Rs.7,50,001- Rs.10,00,000 | 15% |
| Rs.10,00,001- Rs.12,50,000 | 20% |
| Rs.12,50,001- Rs.15,00,000 | 25% |
| Above Rs.15,00,000 | 30% |
Add:- In addition to the Income Tax amount calculated, based on the above-mentioned tax slabs, these assessees are required to pay Surcharge and Cess at the rates given in point 1.4 above.
Note : The option to pay tax at lower rates shall be available only if the total income of assessee is computed without claiming specified exemptions or deductions.
3. Partnership Firm/LLP
A firm (including LLP) is taxable @ 30 %*
* Surcharge @12% of such tax, where the total income exceeds Rs.1 crore.
Note : Subject to marginal relief*.
Health & Education Cess at rate of 4% on amount of Income-tax plus surcharge.
Prominent deductions under Chapter VI-A for Non Business Tax Payers:-
(Subject to certain conditions as laid down in the Act /Rule.)
| To whom application | Section | Description | Max. amount (Rs.) |
| Individual/ HUF | 80C: | Investment in life insurance, recognized PF/ Superannuation Fund, PPF, ULIP, NSC, Sukanya Samridhi Account, Mutual Fund, Payment of Children Tuition fee, payment of principal amount of loan for purchase of House property, notified bank/ P.O. & fixed deposits etc., upto Rs.1.5 lakh only (total). | 1.5 Lakhs |
| Individual | 80CCC: | Expenses towards payment of premium towards annuity plan of LIC or any other IRDA approval insurance agency upto Rs.1.5 lakh.
(Along with 80C). |
1.5 Lakhs |
| Individual | 80CCD(1) : | Investment by an employee to the extent of 10% of salary or 20% of gross total income in the case of self employed individual to Notified Pension Scheme (New Pension Scheme / Atal Pension Yojana) upto Rs. 1,50,000/-. (Along with 80C and 80CCC). | 1.5 Lakhs |
| Individual | 80CCD(1B): | Additional contribution to NPS exempt upto Rs. 50,000 is eligible for deduction; w.e.f. A.Y. 2016-17. | 50,000/- |
| Individual | 80CCD(2) : | Contribution by employer in pension scheme to the extent of 10% of salary of employee above the Rs.1.5 lakh limit in sec. 80CCD(1), subject to certain conditions. Self employed cannot claim this tax deduction. | 1.5 Lakhs |
| Individual | 80CCE: | The aggregate amount eligible for deduction under sec. 80C, 80CCC & 80CCD(1) is Rs. 1.5 lakh. | 1.5 Lakhs |
| Individual/ HUF | 80D : | Health insurance premium / contribution to CGHS payment for preventive Health Checkup of Self, families and parents (Rs. 25,000/-), Rs. 50,000 in case any person insured is a Resident Senior Citizen or (ii) Medical Expenditure on senior citizens in family and parents (Rs. 50,000/-) for non-cash payments. Note: (i) Aggregate deduction for medical insurance premium and medical treatment expenditure shall not exceed Rs.50,000/-.
(ii) The maximum deduction for payment on account of preventive health checkup of self, spouse, parent(s) or dependent children in aggregate shall be Rs. 5000/- |
50,000/- |
| Resident Individual/ HUF | 80DD: | Expenses for medical treatment, training or rehabilitation of disabled dependent relative. Amount: Rs. 75,000/- for normal disability/ Rs. 1,25,000/- for severe disability. | 75,000/-
1,25,000/- |
| Resident Individual/ HUF | 80DDB: | Expenditure on medical treatment of specific disease or ailment for self or dependent – Rs. 40,000/- or actual bill paid whichever is less. In case of Senior Citizen- Rs.1,00,000/- | 40,000/-
1,00,000/- |
| Individual | 80E: | Deduction on repayment of interest on loan taken for pursuing higher education from approved financial and charitable institutions. Deduction is allowed upto 8 Assessment Years. | Any Amount |
| Individual | 80EE: | Interest paid upto Rs. 50,000/- on loan home (not exceeding Rs. 35 lakh issued between 01.04.2016 to 31.03.2017 for acquisition of home (value of residential property not exceeding Rs.50 lakh) to individual having no residential house on the loan sanction date. | 50,000/- |
| All | 80G: | Donation to certain funds, charitable institutions etc. can be claimed on 100% or 50% amount as per conditions provided. However, cash donation is allowed upto Rs. 2000/-only. | Any Amount |
| Individual not receiving HRA | 80GG: | Rent paid for residential accommodation in excess of 10% of adjusted total income per month (subject to limits) or actual rent paid or 25% of adjusted total income or Rs. 5,000 p.m., whichever is the least. | 5,000/- |
| All except those having Income under “Profits and Gains of Business or Profession”. | 80GGA: | Donation made towards Scientific, Social or Statistical Research or Rural Development. However, in case of cash only Rs.10,000/- is allowed (Rs. 2,000 w.e.f. 01.06.2020). | No Limit |
| All except AJP/local Authority |
80GGC: | Donation to Political Parties or electoral trust (not in cash)-applicable to individual only. | No Limit |
| Individual | 80QQB: | Only Royalty on books. Max. limit – Rs. 3 lakh. | 3 Lakhs or specified income whichever is less |
| Individual | 80RRA | 15% of remuneration received in convertible foreign exchange for services rendered outside India. |
15% |
| Individual | 80RRB: | On royalty on registered patents. Max. limit – Rs. 3 lakh. | 3 Lakhs |
| Individual/ HUF* Not applicable for Senior Citizens. | 80TTA: | Upto Rs.10,000/- on interest on deposits (not being time deposits) in a Saving account. | 10,000/- |
| Individual (Senior Citizen) | 80TTB: | On interest on deposit/savings with banks and post offices etc in case of Senior Citizens Rs. 50,000/-(maximum) (80TTA not allowed). | 50,000/- |
| Individual | 80U: | Rs. 75,000/- physical disability (not less than 40% disability) & Rs. 1,25,000/- in case of severe disability (more than 80% disability) | 75,000/-
1,25,000/- |
[Deduction u/s 80RRA, 80RRB & 80QQB can be claimed only if Return of income is filed within the due date.]
Special Tax Rates under Chapter XII
| Section | Applicable to | Particulars of Income | Rate |
| 111 | Individual | Accumulated balance of a Registered Provident Fund which is included in the total income of an employee owing to provision of Rule 8 of Part A not being applicable. | Normal rate of Tax |
| 111A | All Categories of Tax Payers | Short Term Capital Gain arising on transfer of equity share, equity oriented fund, unit of a business trust on or after 01.04.2004 which have been charged to Security Transaction Tax. | 15% |
| 112 | All Taxpayers except Non-residents | Capital Gain arising on transfer of Long Term Capital Assets | 20% |
| 112 | Non-residents | Capital Gain arising on transfer of Long Term Capital Assets:
(i) In case the long term capital asset includes unlisted securities or shares of a private company then LTCG is charged at. (ii) Otherwise LTCG is charged at |
10%
20% |
| 112A | All categories of Tax payers | w.e.f. 01.04.2019, Capital Gain arising on transfer of Long Term Capital Assets (being equity share, equity oriented fund, unit of a business trust upon which Security Transaction Tax is paid) if it exceeds Rs. 1 lakh, then it is taxable at | 10% |
| 115ACA | Resident individual being employee of an Indian corporation engaged in specified knowledge based industry/ service | (i) Dividend [other than dividend referred to in Section 115(O)] on Global Depository Receipts of an Indian Company engaged in specified knowledge based industry or service, issued under ESOP scheme
(ii) Long Term Capital Gain arising on transfer of Global Depository Receipt referred above |
10%
10% |
| 115B | All categories of Tax payers | Profit & Gain arising from life Insurance business. | 12.50% |
| 115BB | All categories of Tax payers | Income from winning of lottery, crossword puzzle, race, horse race, card or other games, gambling/betting of any nature | 30% |
| 115BBC | Any person receiving on behalf of trust/ institution referred in (iv), (v), (vi), & (via) of Sec.10(23C) or Sec 11 | Income by way of anonymous donation received in excess of the higher of the following:
(a) 5% of total donation received, (b) Rs. one lakh |
30% |
| 115BBDA | A resident assessee other than a domestic company, trust/ institution referred in (iv), (v), (vi), & (via) of Sec. 10(23C) and Trust/ institution registered u/s 12A or 12AA | Income by way of dividend exceeding Rs. 10 lakh in aggregate | 10% |
| 115 BBE | All categories of Tax payers | Income referred to in Sec 68, 69, 69A, 69B, 69C and 69D declared in return of income or added by the Assessing Officer.
Note: No deduction, expenditure, allowance, set off of loss is allowed on such income. |
60% |
| 115BBF | A resident patentee assessee |
Income by way of Royalty in respect of a patent developed & registered in India. Note: No deduction, in respect of any expenditure, allowance is allowed in computing such income. | 10% |
| 115BBG | All categories of Tax payers | Income by way of transfer of “Carbon Credit”
Note: No deduction in respect of any expenditure or allowance is allowed while computing such income. |
10% |
Also Read: Income Tax Rates for A.Y. 2021-22 (Company, Co-Op Society & Local Authority)
