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%

Know Your Income Tax Rate - for A.Y. 2021-22 (For Individual, HUF, AOP, BOI, AJP and Firms)

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%

Income Tax CalculationAdd:- 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.]

Return of Income tax

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)

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

May 2021
M T W T F S S
 12
3456789
10111213141516
17181920212223
24252627282930
31