Income Tax Slab for Salaried Individuals (TDS) – FY 2021-2022

What is income tax slab ?

Indian Income tax levies tax on individual taxpayers on the basis of a slab system. Slab system means different tax rates are prescribed for various ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. Such income tax slabs tend to undergo a change during every budget. These slab rates are different for different categories of taxpayers. Income tax has classified three categories of “individual “taxpayers such as:

• Individuals (aged less than of 60 years) including residents and non-residents
• Resident Senior citizens (60 to 80 years of age)
• Resident Super senior citizens (aged more than 80 years)

Income Tax Slab Rates for FY 21-22

1. Income tax slab rate for New Tax regime -FY 2021-22

In this new regime, taxpayers has an OPTION to choose either :

• To pay income tax at lower rates as per New Tax regime on the condition that they forgo certain permissible exemptions and deductions available under income tax, Or
• To continue to pay taxes under the existing tax rates. The assessee can avail rebates and exemptions by staying in the old regime and paying tax at the existing higher rate.

The tax rates in the New tax regime is the same for all categories of Individuals, i.e Individuals & HUF upto 60 years of age, Senior citizens above 60 years upto 80 years , and Super senior citizens above 80 years. Hence no increased basic exemption limit benefit will be available to senior and super senior citizens in the New Tax regime.

Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes.

Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.

Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.

Surcharge applicable as per tax rates below in all categories mentioned above:

• 10% of Income tax if total income > Rs.50 lakh
• 15% of Income tax if total income > Rs.1 crore
• 25% of Income tax if total income > Rs.2 crore
• 37% of Income tax if total income > Rs.5 crore

2. Income tax slabs rate for Old Tax regime -FY 2021-22

Income tax slabs for Individual aged below 60 years & HUF

Income tax exemption limit is up to Rs.2,50,000 for Individuals , HUF below 60 years aged and NRIs for FY 2021-22

An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income tax slab for Individual aged above 60 years to 80 years

Income tax exemption limit is up to Rs.3,00,000 for senior citizen aged above 60 years but less than 80 years for FY 2021-22

An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income tax slab for Individual aged more than 80 years

Income tax exemption limit is up to Rs.5,00,000 for super senior citizen aged above 80 years but less than 80 years for FY 2021-22

An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

3. Difference of slab rates between New tax regime & Old Tax regime