Know your Income Tax Rate for AY 2021-22 & AY 2022-23 For Individual, HUF, AOP, BOI, AJP & Firms

INCOME TAX RATES FOR AY 2021-22 AND AY 2022-23

1.   Income Tax Slab Rate for Individual (resident or non-resident) 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 rangeIncome-Tax rate
 AY 2021-22AY 2022-23
Upto Rs. 2,50,000NilNil
Rs. 2,50,000 – Rs. 5,00,0005%5%
Rs. 5,00,000 – Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%

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 rangeIncome-Tax rate
 AY 2021-22AY 2022-23
Upto Rs. 3,00,000NilNil
Rs. 3,00,000 – Rs. 5,00,0005%5%
Rs. 5,00,000 – Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%

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 rangeIncome-Tax rate
 AY 2021-22AY 2022-23
Upto Rs. 5,00,000NilNil
Rs. 5,00,000- Rs.10,00,00020%20%
Above Rs. 10,00,00030%30%

Hindu Undivided Family (including AOP, BOI and Artificial Juridical Person)

Net income rangeIncome-Tax rate
 AY 2021-22AY 2022-23
Upto Rs. 2,50,000NilNil
Rs.2,50,000 to Rs. 5,00,0005%5%
Rs. 5,00,000 – Rs.10,00,00020%20%
Above Rs. 10,00,00030%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 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)]
  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 57 (iia)]
  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]
  4. 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

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 rangeIncome-Tax rate
Upto Rs. 2,50,000Nil
Rs. 2,50,001 – Rs. 5,00,0005%
Rs. 5,00,001- Rs.7,50,00010%
Rs.7,50,001- Rs.10,00,00015%
Rs.10,00,001- Rs.12,50,00020%
Rs.12,50,001- Rs.15,00,00025%
Above Rs.15,00,00030%

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.

3.   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.)

Special Tax Rates under Chapter XII

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

    FILING of IT Return at

incometaxindia

  • 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:
  • Aadhar
  • Registered Bank Account / ATM
  • Net Banking
  • Demat Account
  • ATM/Debit Card or send ITR-V by post to CPC, Bengaluru

DIRECTORATE OF INCOME-TAX

(Public Relations, Publications & Publicity)

6th Floor, Mayur Bhawan, New Delhi

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