Know your Income Tax Rate for AY 2021-22 & AY 2022-23 FOR INDIVIDUAL, HUF, AOP, BOI, AJP AND FIRMS

Know your Income Tax Rate for AY 2021-22 & AY 2022-23 FOR INDIVIDUAL, HUF, AOP, BOI, AJP AND FIRMS

  1. Income Tax Slab Rate for Individual (resident or non-resident)
    or HUF or AOP or BOI or any other artificial juridical person:

    Individual (resident or non-resident), (Other than senior and super senior citizen) (HUF or AOP or BOI whether incorporated or not or every Artificial Juridical Person) (AJP)::
Net income range Income-Tax rate 
 AY 2021-22 AY 2022-23 
Upto Rs. 2,50,000 Nil Nil 
Rs. 2,50,000 – Rs. 5,00,000 5% 5% 
Rs. 5,00,000 – Rs. 10,00,000 20% 20% 
Above Rs. 10,00,000 30% 30% 
Above Rs. 10,00,000 30% 30% 
  1. 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 
 AY 2021-22 AY 2022-23 
Upto Rs. 3,00,000 Nil Nil 
Rs. 3,00,000 – Rs. 5,00,000 5% 5% 
Rs. 5,00,000 – Rs. 10,00,000 20% 20% 
Above Rs. 10,00,000 30% 30% 
  1. 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 
 AY 2021-22 AY 2022-23 
Upto Rs. 5,00,000 Nil Nil 
Rs. 5,00,000- Rs.10,00,000 20% 20% 
Above Rs. 10,00,000 30% 30% 
  1. Hindu Undivided Family (including AOP, BOI and Artificial Juridical 

Person) 

Net income range Income-Tax rate 
 AY 2021-22 AY 2022-23 
Upto Rs. 2,50,000 Nil Nil 
Rs.2,50,000 to Rs. 5,00,000 5% 5% 
Rs. 5,00,000 – Rs.10,00,000 20% 20% 
Above Rs. 10,00,000 30% 30% 
  1. 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 upto Rs.2 Crores. 
  • Surcharge @ 25% of income tax is applicable where the total income exceeds Rs.2 Crores and upto 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 16 (ia)] 
  1. 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 57 (iia)] 
  1. 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] 
  1. The enhanced surcharge of 25% and 37% as the case may be is not levied, from income chargeable to tax u/s 111A, 112A and 115AD 
  1. 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 
Upto 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 as given in para 1.5 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. 

  1. Partnership Firm/ LLP 

A firm (including LLP) is taxable @ 30 %* for AY 2021-22 and AY 2022-23 

* 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 

* Marginal Relief – 

Marginal relief will be provided to certain taxpayers upto the amounts of difference between the excess tax payable (including-surcharge) on the income above Rs. 50 lakhs**/Rs.100 lakhs and the amount of income that exceeds Rs. 50 lakhs**/Rs. 100 lakhs respectively. 

**Only for individual having income between Rs. 50 lakhs and below 

Rs. 100 lakhs 

Prominent deductions under Chapter VI-A
for Non-Business Taxpayers
:
(Subject to certain conditions as laid down in the Act/ Rule.)

To whom applicable  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 
Investment by an employee to the extent of 10% of salary or 20% of gross total income in the case of self- Individual 80CCD(1) employed individual to Notified Pension 1.5 Lakhs Scheme (New Pension Scheme / Atal Pension Yojana) uptoRs. 1,50,000. (Along with 80C and 80CCC). 
Additional contribution to NPS exempt Individual 80CCD(1B) uptoRs. 50,000 is eligible for deduction; 50,000 w.e.f. AY 2016-17. 
Contribution by employer in pension scheme to the extent of 10% (14% incase employer is Central Government) of Individual 80CCD(2) salary of employee above the Rs.1.5 lakh 1.5 Lakhs limit in Sec. 80CCD(1), subject to certain conditions. Self-employed cannot claim this tax deduction. 
 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 80EE 

All 80G 

Individual 

………………Column Break………………from approved financial and charitable institutions. Deduction is allowed upto 8 Assessment Years. 

Interest paid upto Rs. 50,000 on home loan (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. 

Donation to certain funds, charitable institutions etc. can be claimed on 100% or 50% amount as per conditions provided. However, cash donation is allowed uptoRs. 2000 only. 

Rent paid for residential accommodation 

………………Column Break………………Amount 

50,000 

Any Amount 

not receiving HRA 

All except those having Income under “Profits and Gains of Business or Profession”. 

All except AJP/local Authority 

………………Column Break……………… 

80GG 

80GGA 

80GGC 

………………Column Break………………in excess of 10% of adjusted total income (subject to limits) or actual rent paid or 25% of adjusted total income or Rs. 5,000 p.m., whichever is the least. 

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). 

Donation to Political Parties or electoral trust (not in cash)- applicable to individual only. 

………………Column Break………………5,000 per month 

No Limit 

No Limit 

3 Lakhs or 


Individual   80QQB Only Royalty on books. Max. limit – 

On royalty on registered patents. Max. limit – Rs. 3 lakh. 

………………Column Break………………specified income whichever is less 

3 Lakhs 

Individual/ 

HUF* 

Not applicable for Senior Citizens. 

Individual (Senior Citizen) 

………………Column Break……………… 

80TTA: 

80TTB 

………………Column Break……………… 

Upto Rs.10,000 on interest on deposits (not being time deposits) in a Saving account. 

On interest on deposit/savings with banks and post offices etc. in case of Senior Citizens Rs. 50,000 (maximum) (80TTA not allowed). 

Rs. 75,000 physical disability (not less 

………………Column Break……………… 

10,000 

50,000 

Individual 80U 

[Deduction u/s 80RRB & 80QQB 

can be claimed only if Return of income is filed within the due date.] 

………………Column Break………………than 40% disability) &Rs. 1,25,000 in case of severe disability (more than 80% disability) 

………………Column Break………………75,000/ 

1,25,000 

Special Tax Rates under Chapter XII 

Section Applicable to Particulars of Income Rate 
  111   Individual Accumulated balance of a Registered Provident Fund which Normal is included in the total income of rate of an employee owing to provision Tax of Rule 8 of Part A not being applicable. 
  111A   All Categories of Taxpayers 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 20% Long Term Capital Assets 
  112   Non-residents Capital Gain arising on transfer of Long Term Capital Assets: In case the long term capital asset includes unlisted securities 10% or shares of a private company then LTCG is charged Otherwise LTCG is charged 20% 
   112A   All categories of Taxpayers w.e.f. 01.04.2019, Capital Gain arising on transfer of Long Term Capital Assets (being equity share, equity oriented fund, unit 10% of a business trust upon which Security Transaction Tax is paid) if it exceeds Rs. 1 lakh, then it is taxable at 
   115ACA   Resident individual being employee of an Indian corporation engaged in specified knowledge based industry/ service Dividend [other than dividend referred to in Section 115(O)] 10% on Global Depository Receipts of an Indian Company engaged in specified knowledge based industry or service, issued under ESOP scheme Long Term Capital Gain arising on transfer of Global Depository  10% Receipt referred above 
115B All categories of Taxpayers Profit & Gain arising from life Insurance business. 12.50% 
 115BB  All categories of Taxpayers Income from winning of lottery, crossword puzzle, race, horse race, card or other games, gambling/ betting of any nature  30% 
 Any person receiving Income by way of anonymous 
 on behalf of trust/ donation received in excess of 
115BBC institution referred in the higher of the following: 30% 
 (iv), (v), (vi), & (via) of (a) 5% of total donation received, 
 Sec.10 (23C) or Sec 11 (b) Rs. one lakh 
 A resident assessee  
 other than a domestic  
 company, trust/ institution referred in Income by way of dividend 
115BBDA  exceeding Rs. 10 lakh in 10% 
 (iv), (v), (vi), & (via) of aggregate 
 Sec. 10(23C) and Trust/  
 institution registered  
 u/s 12A or 12AA  
  115 BBE   All categories of Taxpayers 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 is computing such income.   10% 
  115BBG   All categories of Taxpayers 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% 

Special Tax Rates Under Chapter XII (Applicable to non-resident) 

Section Particulars of Income Rate

115A

115AC

(i) Dividend [other than dividend referred to in Section 115(O)].
(ii) Interest received from Govt. of India/Indian Concern in foreign currency.
(iii) Interest received from Infrastructure Debt Fund referred in Section 10(47).
(iv) Interest on money borrowed in foreign currency by an Indian Company or the business trust.
(v) Distributed income being interest received by a unit holder from a business trust specified in section 10(23FC) or (FCA) of the Income Tax Act.
(vi) Income received in respect of units purchased in foreign currency, of a Mutual Fund specified u/s 10(23D) or UTI.
(vii) Royalty/Fees for Tech. Services (other than as specified u/s 44DA(1) received from Govt. of India/ Indian concern in pursuance of an agreement.
Note:
(a) No deduction, expenditure or allowance as allowed u/s 28 to 44C and 57 of the Income Tax Act, 1961.
(b) The person is not required to file return of income if total income consists of only incomes stated above and correct TDS is made on such income.
(i) Income by way of interest earned on notified bond of an Indian Company/ Bond of PSUs sold by Govt. of India which is purchased by taxpayer in foreign currency.
(ii) Dividend (other than dividend referred to in Section 115(O) on global Depository Receipts of an Indian Company issued/ reissued by notified scheme of Govt. of India and purchased in foreign currency.
(iii) Long Term Capital Gain arising on transfer of bonds and transfer of Global Depository Receipts referred above.

20%

20%

5%

5%

5%

20%

10%

10%

10%

10%

Note:
(a) No deduction, expenditure or allowance as allowed u/s 28 to 44C and 57 of the Income Tax Act, 1961
(b) The person is not required to file return of income if total income consists of only incomes referred in Sl. No. (i) & (ii) stated above and correct
TDS is made on such income.
Income received/receivable by way of:
(i) Participation of any sports and games (other than lottery, crossword puzzle, race, horse race, card or other games, gambling/betting of any nature) (for a
non-resident sportsman who is not citizen of India)
20%
(ii) Advertisement 20%
(iii) Contribution of article relating to sports & games 20%
in India in newspaper, magazine, journals etc.
(iv) Income from any game or sport played in India.
(for non-resident sports association or institution) 20%
(v) Income from Performance in India as an entertainer (for non-resident who is not citizen of
India
20%
Note: (a) No deduction, expenditure or allowance is allowed under any provision of the Income Tax Act,
1961

  1. ILING of IT Return at 
  • Determine the types of IT Return required for you 
  • Registration on e-filing portal 
  • Aadhar linking with PAN 
  • Obtain Form 16/16A from Tax Deductor 
  • Check 26 AS for tax credit 
  • IFSC & Account no. of all bank accounts 
  • Registered e-mail id & mobile 
  • Generate e-verification code to avoid sending ITR-V, with the help of: 

(I) Aadhar 

  1. Registered Bank Account / ATM 
  1. Net Banking 
  1. Demat Account 
  1. ATM/Debit Card 

or send ITR-V by post to CPC, Bengaluru 

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