Categories: Income Tax

Income Tax Slab applicable for Assessment Year

All the Important Due Dates and Limits applicable FY 2023

Income Tax Slab for Assessment Year 2021-22

As we already know, in India there is a progressive rate of tax, meaning that persons with higher income, are taxed at higher rate. The main motive behind such a taxation system is to have equal distribution of income in India. For determining the applicable tax slab, many factors have been provided by the IT department. Various factors on which the Income Tax Slab of the taxpayer depends are – their residential status, the amount of income, form of assessee and their age.

In the Budget presented on 1st February, 2020, the finance minister announced a new taxation method, which will be effective from the AY 2021-22, however, the same shall be optional in nature. Such new tax regime aims to provide lower tax liability to individual and HUF, and being an optional method, the assessee can choose the regime which best suits them. Both regimes have their own merits and demerits, and the taxpayer shall consider the one which provides lower tax liability.

UPDATES UNDER BUDGET 2021

As per the budget presented on 1st February 2021, the following updates were notified

  1. No change has been observed in the old and new tax slabs, provided under the Income Tax Act.
  2. It was announced that any Senior Citizens, of age 75years and above and have only pension and interest income as the only source of income, is not required to file their ITR.
  3. The rate of Surcharge and HEC rates and standard deduction will also be the same.
  4. The deductions provided under section 24(b), 80C and other sections under chapter VI-A, shall also be the same. However, the benefit provided to the entities under section 80EEA, shall continue to be granted for one more year, that will be till 31st March 2022.
  5. Also, the timeline for sanctioning of the loan under section 80EEA has been extended till 31st March, 2022.

INCOME TAX SLAB RATES

  1. FOR INDIVIDUALS BELOW THE AGE OF 60 YEARS
TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME
0 – 2,50,000 NIL NIL
2,50,001 – 5,00,000 5% 5%
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,00 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000
12,50,001 – 15,00,000 25% ON EXCESS OF 12,50,000 + 1,25,000
ABOVE 15,00,000 30% ON EXCESS OF 15,00,000 + 1,87,500

ADDITIONS TO TAX LIABILITY

This rate of surcharge and CESS is applied on all the individuals, HUF, BOI, AOP and NRI.

  1. HEALTH AND EDUCATION CESS: On the above tax liability, a Health and Education Cess @4%, is charged on the value of the tax liability including Surcharge, if any. This cess is applied on the tax liability of every person irrespective of their age and residency.
  2. SURCHARGE APPLICABLE: A fixed percentage of Surcharge is levied on the tax liability; in case the total taxable income of the individual exceeds the limit prescribed. The rates are as follows –
  • 10% for Income exceeding Rs 50 Lakh and up to Rs 1 crore.
  • 15% for Income exceeding Rs 1 Crore and up to Rs 2 crores.
  • 25% for Income exceeding Rs 2 Crore and up to Rs 5 crores.
  • 37% for Income exceeding Rs 5 Crore

Such rate of surcharge is applied and added to the value of Tax liability.

  1. INCOME TAX SLAB INDIVIDUALS WITH 60 YEARS AND ABOVE, BUT BELOW 80 YEARS
TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME
0 – 3,00,000 NIL
0 – 2,50,000 NIL
3,00,001 – 5,00,000 5%
2,50,001 – 5,00,000 5%
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,00 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000
12,50,001 – 15,00,000 25% ON EXCESS OF 12,50,000 + 1,25,000
ABOVE 15,00,000 30% ON EXCESS OF 15,00,000 + 1,87,500
  1. INCOME TAX SLAB INDIVIDUALS WITH THE AGE OF 80 YEARS AND ABOVE
TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME
0 – 5,00,000 NIL
0 – 2,50,000 NIL
2,50,001 – 5,00,000 5%
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,00 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000
12,50,001 – 15,00,000 25% ON EXCESS OF 12,50,000 + 1,25,000
ABOVE 15,00,000 30% ON EXCESS OF 15,00,000 + 1,87,500
  1. INCOME TAX SLAB  NRI INDIVIDUAL IRRESPECTIVE OF AGE
TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME
0 – 2,50,000 NIL NIL
2,50,001 – 5,00,000 5% 5%
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,00 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000
12,50,001 – 15,00,000 25% ON EXCESS OF 12,50,000 + 1,25,000
ABOVE 15,00,000 30% ON EXCESS OF 15,00,000 + 1,87,500
  1. INCOME TAX SLAB HINDU UNDIVIDED FAMILY (HUF)
TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME
0 – 2,50,000 NIL NIL
2,50,001 – 5,00,000 5% 5%
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,00 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000
12,50,001 – 15,00,000 25% ON EXCESS OF 12,50,000 + 1,25,000
ABOVE 15,00,000 30% ON EXCESS OF 15,00,000 + 1,87,500

 

  1. INCOME TAX SLAB ASSOCIATION OF PERSONS, BODY OF INDVIDUAL AND ARTIFICIAL JURIDICAL PERSON
TAXABLE INCOME (RS) OLD TAX REGIME
0 – 2,50,000 NIL
2,50,001 – 5,00,000 5%
5,00,001 – 10,00,000 20% ON EXCESS OF 5,00,00 + 12,500
ABOVE 10,00,000 30% ON EXCESS OF 10,00,000 + 1,12,500

No new tax slabs have been provided for AOP, BOI

  1. INCOME TAX SLAB CO-OPERATIVE SOCIETY
TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME
0 – 2,50,000 NIL THE RESIDENT CO-OPERATIVE SOCIETY HAVE AN OPTION TO PAY TAX AT A LOWER RATE OF TAX @ 22% AS PER THE SECTION 115BAD, IRRESPECTIVE THE AMOUNT OF INCOME EARNED.
2,50,001 – 5,00,000 5%
5,00,001 – 10,00,000 20% ON EXCESS OF 5,00,00 + 12,500
ABOVE 10,00,000 30% ON EXCESS OF 10,00,000 + 1,12,500

ADDITIONS TO TAX LIABILITY

This rate of surcharge and CESS is applied on Co-Operative Societies, Partnership Firms, Local Authorities and Limited Liability Partnership.

    1. HEALTH AND EDUCATION CESS: On the above tax liability, a Health and Education Cess @4%, is charged on the value of the tax liability including Surcharge, if any.
    2. SURCHARGE APPLICABLE:A fixed percentage of Surcharge is levied on the tax liability; in case the total taxable income. Where the total taxable income of the above mentioned assesses exceeds Rs 1 crore, a surcharge @ 12 % of the income tax liability is levied.
  1. INCOME TAX SLAB INDIAN COMPANIES
PARTICULARS SECTION 115BA SECTION 115BAA SECTION 115BAB OTHERS
EFFECTIVE DATE A.Y. 2017-18 A.Y. 2020-21 A.Y. 2020-21 –
ELIGIBLE ENTITIES ALL DOMESTIC COMPNAIES ENGAGED IN MANUFACTURING AND PRODUCTION OF ARTICLES. ALL DOMESTIC COMPANIES ALL DOMESTIC COMPNAIES ENGAGED IN MANUFACTURING AND PRODUCTION OF ARTICLES. ALL DOMESTIC COMPANIES
DATE OF INCORPORATION INCORPORATED AND COMMENCED ON AND AFTER 1ST MARCH 2016 NO SPECIFIC REQUIREMENT INCORPRATED ON AND AFTER  1ST OCTOBER 2019 AND COMMENCED ON AND BEFORE 31ST MARCH 2023 NO SPECIFIC REQURIEMENT
BASIC RATE OF TAX 25% 22% 15% 25% IF TURNOVER UPTO RS 400 CRORES, OTHERWISE 30%
SURCHARGE APPLICABLE 7% IF INCOME ABOVE RS 1 CRORE, UPTO RS 10 CRORES. 12% FOR INCOME ABOVE RS 10 CRORES 10% 10% 7% IF INCOME ABOVE RS 1 CRORE, UPTO RS 10 CRORES. 12% FOR INCOME ABOVE RS 10 CRORES
CESS 4% 4% 4% 4%
MAT APPLICABILITY APPLICABLE @ 15% NOT APPLICABLE NOT APPLICABLE APPLICABLE @ 15%
  1. INCOME TAX SLAB FOREIGN COMPANY
PARTICULARS TAX RATE SURCHARGE CESS
FOREIGN COMPANY RECEIVING ROYALTY OR TECHNICAL FEES FROM GOVERNMENT OF INDIA 50% 2% IF INCOME ABOVE RS 1 CRORE, UPTO RS 10 CRORES. 5% FOR INCOME ABOVE RS 10 CRORES 4%
FOREIGN COMPANY RECEIVING ANY OTHER INCOME 40% 2% IF INCOME ABOVE RS 1 CRORE, UPTO RS 10 CRORES. 5% FOR INCOME ABOVE RS 10 CRORES 4%

SOME CALCULATIONS RELATING TO TAX LIABILITY

INCOME TAX SLAB INDIVIDUALS BELOW THE AGE OF 60 YEARS

TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 2,50,000 NIL NIL NIL NIL NIL
2,50,001 – 5,00,000 5% 5% NIL 4% UPTO RS 12,500
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,000 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500 NIL 4% NIL
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500 NIL 4% NIL
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000 NIL 4% NIL
12,50,001 – 15,00,000 30% ON EXCESS OF 12,50,000 + 1,87,500 25% ON EXCESS OF 12,50,000 + 1,25,000 NIL 4% NIL
15,00,001 – 50,00,000 30% ON EXCESS OF 15,00,000 + 2,62,500 30% ON EXCESS OF 15,00,000 + 1,87,500 NIL 4% NIL
50,00,001 – 1,00,00,000 30% ON EXCESS OF 50,00,000 + 13,12,500 30% ON EXCESS OF 50,00,000 + 12,37,500 10% 4% NIL
1,00,00,001 – 2,00,00,000 30% ON EXCESS OF 1,00,00,000 + 28,12,500 30% ON EXCESS OF 1,00,00,000 + 27,37,500 15% 4% NIL
2,00,00,001 – 5,00,00,000 30% ON EXCESS OF 2,00,00,000 + 58,12,500 30% ON EXCESS OF 2,00,00,000 + 57,37,500 25% 4% NIL
ABOVE 5,00,00,000 30% ON EXCESS OF 5,00,00,000 + 1,48,12,500 30% ON EXCESS OF 5,00,00,000 + 1,47,37,500 37% 4% NIL

 

INCOME TAX SLAB  INDIVIDUALS WITH 60 YEARS AND ABOVE, BUT BELOW 80 YEARS

TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 3,00,000 NIL NIL NIL NIL
0 – 2,50,000 NIL NIL NIL NIL
3,00,001 – 5,00,000 5% NIL 4% UPTO RS 12,500
2,50,001 – 5,00,000 5% NIL 4% UPTO RS 12,500
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,000 + 10,000 10% ON EXCESS OF 5,00,000 + 12,500 NIL 4% NIL
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500 NIL 4% NIL
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,10,000 20% ON EXCESS OF 10,00,000 + 75,000 NIL 4% NIL
12,50,001 – 15,00,000 30% ON EXCESS OF 12,50,000 + 1,85,000 25% ON EXCESS OF 12,50,000 + 1,25,000 NIL 4% NIL
15,00,001 – 50,00,000 30% ON EXCESS OF 15,00,000 + 2,60,000 30% ON EXCESS OF 15,00,000 + 1,87,500 NIL 4% NIL
50,00,001 – 1,00,00,000 30% ON EXCESS OF 50,00,000 + 13,10,000 30% ON EXCESS OF 50,00,000 + 12,37,500 10% 4% NIL
1,00,00,001 – 2,00,00,000 30% ON EXCESS OF 1,00,00,000 + 28,10,000 30% ON EXCESS OF 1,00,00,000 + 27,37,500 15% 4% NIL
2,00,00,001 – 5,00,00,000 30% ON EXCESS OF 2,00,00,000 + 58,10,000 30% ON EXCESS OF 2,00,00,000 + 57,37,500 25% 4% NIL
ABOVE 5,00,00,000 30% ON EXCESS OF 5,00,00,000 + 1,48,10,000 30% ON EXCESS OF 5,00,00,000 + 1,47,37,500 37% 4% NIL

INCOME TAX SLAB INDIVIDUALS WITH AGE OF 80 YEARS AND ABOVE

TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 5,00,000 NIL NIL NIL NIL
0 – 2,50,000 NIL NIL NIL NIL
2,50,001 – 5,00,000 5% NIL 4% UPTO RS 12,500
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,000 10% ON EXCESS OF 5,00,000 + 12,500 NIL 4% NIL
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500 NIL 4% NIL
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,00,000 20% ON EXCESS OF 10,00,000 + 75,000 NIL 4% NIL
12,50,001 – 15,00,000 30% ON EXCESS OF 12,50,000 + 1,75,000 25% ON EXCESS OF 12,50,000 + 1,25,000 NIL 4% NIL
15,00,001 – 50,00,000 30% ON EXCESS OF 15,00,000 + 2,50,000 30% ON EXCESS OF 15,00,000 + 1,87,500 NIL 4% NIL
50,00,001 – 1,00,00,000 30% ON EXCESS OF 50,00,000 + 13,00,000 30% ON EXCESS OF 50,00,000 + 12,37,500 10% 4% NIL
1,00,00,001 – 2,00,00,000 30% ON EXCESS OF 1,00,00,000 + 28,00,000 30% ON EXCESS OF 1,00,00,000 + 27,37,500 15% 4% NIL
2,00,00,001 – 5,00,00,000 30% ON EXCESS OF 2,00,00,000 + 58,00,000 30% ON EXCESS OF 2,00,00,000 + 57,37,500 25% 4% NIL
ABOVE 5,00,00,000 30% ON EXCESS OF 5,00,00,000 + 1,48,00,000 30% ON EXCESS OF 5,00,00,000 + 1,47,37,500 37% 4% NIL

INCOME TAX SLAB NON-RESIDENT INDIVIDUALS, IRRESPECTIVE OF AGE

TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 2,50,000 NIL NIL NIL NIL NIL
2,50,001 – 5,00,000 5% 5% NIL 4% UPTO RS 12,500
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,000 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500 NIL 4% NIL
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500 NIL 4% NIL
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000 NIL 4% NIL
12,50,001 – 15,00,000 30% ON EXCESS OF 12,50,000 + 1,87,500 25% ON EXCESS OF 12,50,000 + 1,25,000 NIL 4% NIL
15,00,001 – 50,00,000 30% ON EXCESS OF 15,00,000 + 2,62,500 30% ON EXCESS OF 15,00,000 + 1,87,500 NIL 4% NIL
50,00,001 – 1,00,00,000 30% ON EXCESS OF 50,00,000 + 13,12,500 30% ON EXCESS OF 50,00,000 + 12,37,500 10% 4% NIL
1,00,00,001 – 2,00,00,000 30% ON EXCESS OF 1,00,00,000 + 28,12,500 30% ON EXCESS OF 1,00,00,000 + 27,37,500 15% 4% NIL
2,00,00,001 – 5,00,00,000 30% ON EXCESS OF 2,00,00,000 + 58,12,500 30% ON EXCESS OF 2,00,00,000 + 57,37,500 25% 4% NIL
ABOVE 5,00,00,000 30% ON EXCESS OF 5,00,00,000 + 1,48,12,500 30% ON EXCESS OF 5,00,00,000 + 1,47,37,500 37% 4% NIL

INCOME TAX SLAB HUF

TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 2,50,000 NIL NIL NIL NIL NIL
2,50,001 – 5,00,000 5% 5% NIL 4% NIL
5,00,001 – 7,50,000 20% ON EXCESS OF 5,00,000 + 12,500 10% ON EXCESS OF 5,00,000 + 12,500 NIL 4% NIL
7,50,001 – 10,00,000 15% ON EXCESS OF 7,50,000 + 37,500 NIL 4% NIL
10,00,001 – 12,50,000 30% ON EXCESS OF 10,00,000 + 1,12,500 20% ON EXCESS OF 10,00,000 + 75,000 NIL 4% NIL
12,50,001 – 15,00,000 30% ON EXCESS OF 12,50,000 + 1,87,500 25% ON EXCESS OF 12,50,000 + 1,25,000 NIL 4% NIL
15,00,001 – 50,00,000 30% ON EXCESS OF 15,00,000 + 2,62,500 30% ON EXCESS OF 15,00,000 + 1,87,500 NIL 4% NIL
50,00,001 – 1,00,00,000 30% ON EXCESS OF 50,00,000 + 13,12,500 30% ON EXCESS OF 50,00,000 + 12,37,500 10% 4% NIL
1,00,00,001 – 2,00,00,000 30% ON EXCESS OF 1,00,00,000 + 28,12,500 30% ON EXCESS OF 1,00,00,000 + 27,37,500 15% 4% NIL
2,00,00,001 – 5,00,00,000 30% ON EXCESS OF 2,00,00,000 + 58,12,500 30% ON EXCESS OF 2,00,00,000 + 57,37,500 25% 4% NIL
ABOVE 5,00,00,000 30% ON EXCESS OF 5,00,00,000 + 1,48,12,500 30% ON EXCESS OF 5,00,00,000 + 1,47,37,500 37% 4% NIL

INCOME TAX SLAB-AOP, BOI, AJP

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 2,50,000 NIL NIL NIL NIL
2,50,001 – 5,00,000 5% NIL 4% NIL
5,00,001 – 10,00,000 20% ON EXCESS OF 5,00,000 + 12,500 NIL 4% NIL
10,00,001 – 50,00,000 30% ON EXCESS OF 10,00,000 + 1,12,500 NIL 4% NIL
50,00,001 – 1,00,00,000 30% ON EXCESS OF 50,00,000 + 13,12,500 10% 4% NIL
1,00,00,001 – 2,00,00,000 30% ON EXCESS OF 1,00,00,000 + 28,12,500 15% 4% NIL
2,00,00,001 – 5,00,00,000 30% ON EXCESS OF 2,00,00,000 + 58,12,500 25% 4% NIL
ABOVE 5,00,00,000 30% ON EXCESS OF 5,00,00,000 + 1,48,12,500 37% 4% NIL

INCOME TAX SLAB PARTNERSHIP FIRM/ LLP/ LOCAL AUTHORITY

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 1,00,00,000 30% NIL 4% NIL
ABOVE 1,00,00,000 30% ON EXCESS OF 1,00,00,000 + 30,00,000 12% 4% NIL

INCOME TAX SLAB INDIAN COMPANY WITH GROSS RECEIPTS MORE THAN RS. 400 CRORES

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 1,00,00,000 30% NIL 4% NIL
1,00,00,001 – 10,00,00,000 30% ON EXCESS OF 1,00,00,000 + 30,00,000 7% 4% NIL
ABOVE 10,00,00,000 30% ON EXCESS OF 10,00,00,000 + 3,00,00,000 12% 4% NIL

INCOME TAX SLAB INDIAN COMPANY WITH GROSS RECEIPTS UPTO RS. 400 CRORES

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 1,00,00,000 25% NIL 4% NIL
1,00,00,001 – 10,00,00,000 25% ON EXCESS OF 1,00,00,000 + 25,00,000 7% 4% NIL
ABOVE 10,00,00,000 25% ON EXCESS OF 10,00,00,000 + 2,50,00,000 12% 4% NIL

INCOME TAX SLAB COMPANY REGISTERED UNDER SECTION 115BBA

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
ANY AMOUNT OF INCOME 22% 10% 4% NIL

INCOME TAX SLAB COMPANY REGISTERED UNDER SECTION 115BAB

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
ANY AMOUNT OF INCOME 15% 10% 4% NIL

INCOME TAX SLAB FOREIGN COMPANY

RECEIVING ROYALTY FOR TECHNICAL FEES FROM INDIAN GOVERNMENT

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 1,00,00,000 50% NIL 4% NIL
1,00,00,001 – 10,00,00,000 50% ON EXCESS OF 1,00,00,000 + 50,00,000 2% 4% NIL
ABOVE 10,00,00,000 50% ON EXCESS OF 10,00,00,000 + 5,00,00,000 5% 4% NIL

RECEIVING ANY OTHER INCOME

TAXABLE INCOME (RS) TAX RATE SURCHARGE CESS REBATE UNDER SECTION 87A
0 – 1,00,00,000 40% NIL 4% NIL
1,00,00,001 – 10,00,00,000 40% ON EXCESS OF 1,00,00,000 + 40,00,000 2% 4% NIL
ABOVE 10,00,00,000 40% ON EXCESS OF 10,00,00,000 + 4,00,00,000 5% 4% NIL

INCOME TAX SLAB –CO-OPERATIVE SOCIETY

TAXABLE INCOME (RS) OLD TAX REGIME NEW TAX REGIME SURCHARGE CESS REBATE UNDER SECTION 87A
0 –10,000 10% 22% NIL 4% NIL
10,001 – 20,000 20% ON EXCESS OF 10,000 + 1,000 22% ON EXCESS OF 10,000 + 2,200 NIL 4% NIL
20,001 – 1,00,00,000 30% ON EXCESS OF 20,000 + 3,000 22% ON EXCESS OF 20,000 + 4,400 NIL 4% NIL
ABOVE 1,00,00,000 30% ON EXCESS OF 1,00,00,000 + 29,97,000 22% ON EXCESS OF 1,00,00,000 + 22,00,000 12% 4% NIL

 

FM Nirmala Sitharaman confirms no tax rate cuts for old tax regime

Finance Minister Nirmala Sitharaman has reiterated that there will be no reductions in tax rates under the old tax regime, despite increasing calls from taxpayers. However, the government is not forcing anyone to switch to the new regime, which features lower tax rates and an increased standard deduction of ₹75,000.

While the Finance Minister acknowledged the desire for similar rate cuts in the old regime, she emphasized that the new regime is meant to be a simpler alternative, with fewer exemptions but lower rates, and is available for taxpayers who prioritize simplicity over deductions. The new regime was introduced to simplify direct taxation and make compliance easier. Over 78% of taxpayers have already opted for the new regime, which includes the following tax rates for FY 2025:

  • Up to ₹3 lakh: Nil
  • ₹3 lakh to ₹7 lakh: 5% (with a rebate under section 87A for income up to ₹7 lakh)
  • ₹7 lakh to ₹10 lakh: 10%
  • ₹10 lakh to ₹12 lakh: 15%
  • ₹12 lakh to ₹15 lakh: 20%
  • Above ₹15 lakh: 30%

By contrast, the old regime, which includes multiple exemptions and deductions, retains higher tax rates:

For individuals below 60 years:

  • Up to ₹2.5 lakh: Nil
  • ₹2.5 lakh to ₹5 lakh: 5%
  • ₹5 lakh to ₹10 lakh: 20%
  • Above ₹10 lakh: 30%

For senior citizens aged 60–80:

  • Up to ₹3 lakh: Nil
  • ₹3 lakh to ₹6 lakh: 5%
  • ₹6 lakh to ₹9 lakh: 10%
  • ₹9 lakh to ₹12 lakh: 15%
  • ₹12 lakh to ₹15 lakh: 20%
  • Above ₹15 lakh: 30%

For super senior citizens (above 80 years):

  • Up to ₹5 lakh: Nil
  • ₹5 lakh to ₹10 lakh: 20%
  • Above ₹10 lakh: 30%

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Tags: Income Tax Slab for Assessment Year 2021-22
4 years ago
Rajput Jain & Associates

Rajput Jain & Associates is a Chartered Accountants firm, with it's headquarter situated at New Delhi (the capital of India). The firm has been set up by a group of young, enthusiastic, highly skilled and motivated professionals who have taken experience from top consulting firms and are extensively experienced in their chosen fields has providing a wide array of Accounting, Auditing, Taxation, Assurance and Business advisory services to various clients and their stakeholders. Rajput jain & Associates, a professional firm, offers its clients a full range of services, To serve better and to bring bucket of services under one roof, the firm has merged with it various Chartered Accountancy firms pioneer in diversified fields. We have associates all over India in big cities. All our offices are well equipped with latest technological support with updated reference materials. We have a large team of professionals other than our Core Team members to meet the requirements of our prospective clients including the existing ones. However, considering our commitment towards high quality services to our clients, our team keeps on growing with more and more associates having strong professional background with good exposure in the related areas of responsibility.

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