Government of India – Income Tax Slab Rates for AY 2021-2022

Personal Income Tax Rates in India for the Financial Year 2020-2021 and Assessment Year 2021-2022

New Delhi (Delhi, India), February 02, 2020

Indian Government Keeps Basic Personal Income Tax Exemption Limit Unchanged to ₹250,000

The Government of India has not revised the basic personal income tax exemption limit from ₹250,000 for the Financial Year 2020-2021 and Assessment Year 2021-2022.

The new income tax rates or Income tax slabs are applicable for the incomes earned or generated from April 01, 2020 to March 31, 2021.

Mrs. Nirmala Sitharaman, the Finance Minister of India, announced the new personal income tax slab rates while presenting the Union Budget of India, also called the Indian General Budget, on Saturday, February 01, 2020 in New Delhi.

Here are the personal income tax slab rates for calculating your income tax for the Financial Year 2020-2021 (Assessment Year 2021-2022).

Personal Income Tax Slabs for Individuals in Simplified New Income Tax Regime

Income Tax Slabs for Individual (Male or Female of Any Age) for Assessment Year 2021-2022

1. Income Tax Slab: ₹0 to ₹250,000 – Income Tax Rate Payable: Nil

2. Income Tax Slab: ₹250,001 to ₹500,000 – Income Tax Rate Payable: 5%

3. Income Tax Slab: ₹500,001 to ₹750,000 – Income Tax Rate Payable: 10%

4. Income Tax Slab: ₹750,001 to ₹1,000,000 – Income Tax Rate Payable: 15%

5. Income Tax Slab: ₹1,000,001 to ₹1,250,000 – Income Tax Rate Payable: 20%

6. Income Tax Slab: ₹1,250,001 to ₹1,500,000 – Income Tax Rate Payable: 25%

7. Income Tax Slab: ₹1,500,001 and above – Income Tax Rate Payable: 30%

Note: Tax Relief Under Section 87A of IT Act – In case of a tax payer, having total income not exceeding ₹500,000 in the Financial Year 2020-2021, income tax chargeable on the income or ₹12,500, whichever is less.

Personal Income Tax Slabs for Individuals in Existing Old Income Tax Regime

I. Income Tax Slabs for Individual (Male or Female Below 60 Years Age) for Assessment Year 2021-2022

1. Income Tax Slab: ₹0 to ₹250,000 – Income Tax Rate Payable: Nil

2. Income Tax Slab: ₹250,001 to ₹500,000 – Income Tax Rate Payable: 5%

3. Income Tax Slab: ₹500,001 to ₹1,000,000 – Income Tax Rate Payable: 20%

4. Income Tax Slab: ₹1,000,001 and above – Income Tax Rate Payable: 30%

Note: Tax Relief Under Section 87A of IT Act – In case of a tax payer, having total income not exceeding ₹500,000 in the Financial Year 2020-2021, income tax chargeable on the income or ₹12,500, whichever is less.

II. Income Tax Slabs for Senior Citizen (Male or Female 60 to 80 Years Age) for Assessment Year 2021-2022

1. Income Tax Slab: ₹0 to ₹300,000 – Income Tax Rate Payable: Nil

2. Income Tax Slab: ₹300,001 to ₹500,000 – Income Tax Rate Payable: 5%

3. Income Tax Slab: ₹500,001 to ₹1,000,000 – Income Tax Rate Payable: 20%

4. Income Tax Slab: ₹1,000,001 and above – Income Tax Rate Payable: 30%

Note: Tax Relief Under Section 87A of IT Act – In case of a tax payer, having total income not exceeding ₹500,000 in the Financial Year 2020-2021, income tax chargeable on the income or ₹12,500, whichever is less.

III. Income Tax Slabs for Super Senior Citizen (Male or Female Above 80 Years Age) for Assessment Year 2021-2022

1. Income Tax Slab: ₹0 to ₹500,000 – Income Tax Rate Payable: Nil

2. Income Tax Slab: ₹500,001 to ₹1,000,000 – Income Tax Rate Payable: 20%

3. Income Tax Slab: ₹1,000,001 and above – Income Tax Rate Payable: 30%

Surcharge:

10% of the Income Tax, where taxable income of an individual is ₹5,000,001 to ₹10,000,000. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹50 lakhs by more than the amount of increase in taxable income.

15% of the Income Tax, where taxable income of an individual is ₹10,000,001 or above. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹1 crore by more than the amount of increase in taxable income.

Health and Education Cess:

A 4% cess (i.e. Primary Education Cess: 2% + Secondary and Higher Education Cess: 1% + Health Cess: 1%) is payable on the total of Income Tax amount and Surcharge.

Calculation of an Individual’s Age and Applicable Income Tax Rates

The normal income tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the income tax rates will be same irrespective of his or her age.

For the purpose of ascertainment of the applicable income tax slab, an individual is classified as follows:

(1) Resident individual below the age of 60 years (i.e. he or she had born on or after April 01, 1960).

(2) Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years (i.e. he or she had born during April 01, 1940 to March 31, 1960).

(3) Resident individual of the age of 80 years or above at any time during the year (i.e. he or she had born before April 01, 1940).

(4) For a non-resident individual, the income tax rates will be same irrespective of the age.

Ministry of Finance, Government of India – Finance Minister’s Budget Speech for Financial Year 2020-2021

Union Budget of India 2020-2021 – Minister of Finance’s Speech