Income Tax Slab for New and Old Regime for Different Persons
Income Tax Slabs and Rates
In India, Income Tax Slabs are announced by the Finance Minister of India every financial year. Presently, there are two regimes of income tax such as new regime and old regime. The tax benefits cannot be availed under the new tax regime. However, tax benefits can be availed under old tax regime.
What is the Income Tax Slab?
Individual taxpayers are required to pay income tax basing on the income tax slab under which they fall as prescribed by the finance minister. Considering the income of an individual he or she may come under a different income tax slab. Thus, the individuals who have a higher income are required to pay more taxes as compared to the individuals who have low income. The income tax slab system works as a means to maintain fair taxation system within the country. It is to be noted that the slab may tend to change at every year as per the budget announcement.
Income Tax Slabs remain Unchanged
During the Union Budget 2021 announcement made by finance minister Smt. Nirmala Sitharaman, there were no changes in the income tax slabs for the individual taxpayers. However, senior citizen above the age of 75 is exempted from filing income tax if the source of income is through a pension only.
Income Slab and Rates of Taxes for Financial Year 2020-21/Assessment Year2021-22
For Individuals & HUF
A table containing the details of income tax slab for Resident Individual or Resident but not Ordinarily Resident Individual or Non-resident Individual having less than 60 years of age and Hindu Undivided Family during the previous year;
|
Taxable income |
Tax Rate |
Tax Rate |
|
Up to Rs. 2,50,000 |
Nil |
Nil |
|
Rs. 2,50,001 to Rs. 5,00,000 |
5% |
5% |
|
Rs. 5,00,001 to Rs. 7,50,000 |
20% |
10% |
|
Rs. 7,50,001 to Rs. 10,00,000 |
20% |
15% |
|
Rs. 10,00,001 to Rs. 12,50,000 |
30% |
20% |
|
Rs. 12,50,001 to Rs. 15,00,000 |
30% |
25% |
|
Above Rs. 15,00,000 |
30% |
30% |
A table containing the details of income tax slab for Resident Individual or Resident but not Ordinarily Resident Individual or Non-resident Individual having more than 60 years of age but below 80 years of age and Hindu Undivided Family during the previous year;
|
Taxable income |
Tax Rate |
Tax Rate |
|
Up to Rs. 2,50,000 |
Nil |
Nil |
|
Rs. 2,50,001 to Rs. 5,00,000 |
5% |
5% |
|
Rs. 5,00,001 to Rs. 7,50,000 |
20% |
10% |
|
Rs. 7,50,001 to Rs. 10,00,000 |
20% |
15% |
|
Rs. 10,00,001 to Rs. 12,50,000 |
30% |
20% |
|
Rs. 12,50,001 to Rs. 15,00,000 |
30% |
25% |
|
|
30% |
30% |
A table containing the details of income tax slab for Resident Individual or Resident but not Ordinarily Resident Individual or Non-resident Individual having 80 years of age or more and Hindu Undivided Family during the previous year;
|
Taxable income |
Tax Rate |
Tax Rate |
|
Up to Rs. 2,50,000 |
Nil |
Nil |
|
Rs. 2,50,001 to Rs. 5,00,000 |
Nil |
5% |
|
Rs. 5,00,001 to Rs. 7,50,000 |
20% |
10% |
|
Rs. 7,50,001 to Rs. 10,00,000 |
20% |
15% |
|
Rs. 10,00,001 to Rs. 12,50,000 |
30% |
20% |
|
Rs. 12,50,001 to Rs. 15,00,000 |
30% |
25% |
|
|
30% |
30% |
The following are the Surcharge chargeable after tax:
- 10% of Income tax in case the total income is more than Rs.50 lakh
- 15% of Income tax in case the total income is more than Rs.1 crore
- 25% of Income tax in case the total income is more than Rs.2 crore
- 37% of Income tax in case the total is more than Rs.5 crore
Note:
Enhanced Rate of Surcharge i.e. 25% or 37% cannot be applied in case of some specific incomes including the following;
- Short-term capital gain Under Section 111A
- Long-term capital gain Under Section 112A
- Short-term or long-term capital gain Under Section 115AD(1)(b)
Education cess:
It is charged at 4% of income tax in addition to the surcharge
Note:
A rebate under Section 87A cannot be claimed by a Resident Individual or Resident but not Ordinarily Resident Individuals if the total income is less than Rs. 5, 00,000. The rebate amount will be Rs. 12,500 or 100% of the income tax amount, whichever is less. The Section 87A is applicable in both new and existing scheme of tax.
For Association of Persons/Body of Individuals/Artificial Juridical Person
|
Taxable Income |
Tax Rate |
|
Up to Rs. 2,50,000 |
Nil |
|
Rs. 2,50,001 to Rs. 5,00,000 |
5% |
|
Rs. 5,00,001 to Rs. 10,00,000 |
20% |
|
|
30% |
The following are the Surcharge chargeable after tax:
- 10% of Income tax in case the total income is more than Rs.50 lakh
- 15% of Income tax in case the total income is more than Rs.1 crore
- 25% of Income tax in case the total income is more than Rs.2 crore
- 37% of Income tax in case the total is more than Rs.5 crore
Note:
Enhanced Rate of Surcharge i.e. 25% or 37% cannot be applied in case of some specific incomes including the following;
- Short-term capital gain Under Section 111A
- Long-term capital gain Under Section 112A
- Short-term or long-term capital gain Under Section 115AD(1)(b)
Education cess:
It is charged at 4% of income tax in addition to the surcharge
Tax Rate For Partnership Firm
The taxable rate for a partnership firm including a Limited Liability Partnership Firm is 30%. If the total income is more than Rs. 1 crore then a surcharge of 12% will be charged along with the education cess of 4% on income tax.
Income Tax Slab Rate for Local Authority:
The taxable rate for a local authority is 30%. If the total income is more than Rs. 1 crore then a surcharge of 12% will be charged along with the education cess of 4% on income tax.
Tax Slab Rate for Domestic Company:
The taxable rate for domestic company is 30%. However, in case the gross income or turnover is less than Rs. 400 crore in the previous year then the rate of tax will be 25%. A table containing the details of tax rate according to different types of company is provided below;
|
Particulars |
Tax Rate |
|
In case the gross income or turnover is less than Rs. 400 crore in the previous year |
25% |
|
In case the company has opted for section 115BA |
25% |
|
In case the company has opted for section 115BAA |
22% |
|
In case the company has opted for section 115BAB |
15% |
The following surcharges are applicable on the taxable amount;
- 7% of Income tax in case the total income is more than Rs.1 crore
- 12% of Income tax in case the total income is more than Rs.10 crore
- 10% of income tax in case the domestic company has opted for section 115BAA and 115BAB
Apart from that a Education cess of 4% is chargeable of Income tax adding to surcharge.
Rates of Tax for Foreign Company
The taxable rate of foreign company is 40%
The following surcharges are applicable on the taxable amount;
- 2% of Income tax in case the total income is more than Rs.1 crore
- 5% of Income tax in case the total income is more than Rs.10 crore
Apart from that a Education cess of 4% is chargeable of Income tax adding to surcharge.
Income Tax Slab for Co-operative Society:
|
Taxable income |
Tax Rate |
Tax Rate |
|
Up to Rs. 10,000 |
10% |
|
|
Rs. 10,001 to Rs. 20,000 |
20% |
22% |
|
Rs. 20,000 or more |
30% |
|
The following surcharges are applicable on the taxable amount;
- 12% of Income tax in case the total income is more than Rs.1 crore
- The rate of surcharge is 10% in case of concessional scheme
Apart from that a Education cess of 4% is chargeable of Income tax adding to surcharge.
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