Every year tax payers need to make a note of changes announced in the budget that reflect in the income tax e-filing forms. Many filing details remain unchanged, whereas there may be changes in a few. The income tax slab rates specify the threshold yearly limits at which a higher a lower tax rate is applicable.
High Returns
Get Returns as high as 15%*Zero Capital Gains tax
unlike 10% in Mutual FundsSave upto Rs 46,800
in Tax under section 80 C*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
The budget for the Financial Year 2022- 2023 was announced by Finance Minister Nirmala Sitharaman on 1st February 2022. The high hopes of salaried employees were left unanswered as there were no changes announced in the Income Tax Slab Rates for the Financial Year 2021 – 2022 and Assessment Year 2022 – 2023.
As mentioned above, Income Tax Slab Rates for Financial Year 2021 – 2022 are the same as the rates for the Financial Year 2020 – 2021. Here are a few highlights of the Income Tax Slab Rates for Financial Year 2021 – 2022.
There is no change in the Income Tax Slab rates
Taxpayers continue paying taxes following the previous year’s tax regime
Either the Old or the New tax regime can be followed for the payment of tax
Tax rebate of up to Rs. 12,500 is offered under Section 87A of the Income Tax Act, 1961
Individual earning up to Rs. 5,00,000 does not fall under the tax paying category irrespective of the tax regime followed
Once opted for a new tax regime, a taxpayer can never switch back to the old regime in their lifetime
Taxpayers are divided into 4 categories and 1 for domestic companies when it comes to paying taxes. Let us take a look at these categories:
Individuals less than 60 years old.
A senior citizen with an age limit of 60 years and above, but less than 80 years old.
A senior citizen who is 80 or above 80 years old.
Hindu Undivided Family (HUF) (including AOP, BOI, and Artificial Juridical Person)
Domestic companies
Net Income Range | Rate of Income-tax | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 2,50,000 | - | - |
Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Net Income Range | Rate of Income-tax | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 3,00,000 | - | - |
Rs. 3,00,000 to Rs. 5,00,000 | 5% | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Net Income Range | Rate of Income-tax | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 5,00,000 | - | - |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Net Income Range | Rate of Income-tax | |
Assessment Year 2022-23 | Assessment Year 2021-22 | |
Up to Rs. 2,50,000 | - | - |
Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
The cess and surcharge on income tax payable are applicable if the total income of the assessee exceeds the below-mentioned limits:
Surcharge Rate | ||
Range of Income | Assessment Year 2022-23 | Assessment Year 2021-22 |
Above Rs. 50 Lakhs but less than Rs. 1 Crore | 10% | 10% |
Above Rs. 1 Crore but less than Rs. 2 Crores | 15% | 15% |
Above Rs. 2 Crores but less than Rs. 5 Crores | 25% | 25% |
Above Rs. 5 crores but less than Rs. 10 Crores | 37% | 37% |
Above Rs. 10 Crores | 37% | 37% |
In the new tax regime, the tax slabs are kept the same for the income group up to Rs. 5 lakhs. Here is the table with the old and new tax rates as applicable on the annual income:
Old Tax Rate(%) | Annual Income (Rs.) | New Tax Rate (%) |
Nil | Up to Rs. 2L | Nil |
5 | 2.5 L to Rs. 5L | 5 |
20 | Rs. 5L to Rs. 7.5L | 10 |
20 | Rs. 7.5L to Rs. 10L | 15 |
30 | Rs. 10L to Rs. 12.5L | 20 |
30 | Rs. 12.5L to Rs. 15L | 25 |
30 | Rs. 15L and above | 30 |
According to the budget released in 2019 there have been some changes in the structure of the tax slab in the interim budget 2019 the tax rebate of Rs. 12,500 under Section 87A of IT Act. 1961 is available to the individuals who have a yearly income up to Rs. 5 lakhs. Income tax rates differ for age groups and income slabs.
The income tax rates are first categorized across age groups then cross-categorized across age group income to generate tax rate slabs. The following paragraphs discuss the income tax rates for age/income slab matrix.
Income Tax slab rates help you decide whether your income is taxable or not. The finance minister has introduced many changes in the income tax slab rate for financial year 2019-2020 (AY 2020-2021). These are:
No tax is applicable for individuals whose income is less than Rs. 2,50,000
0%-5% tax is applicable for different age group with income from Rs. 2,50,000 - Rs. 5,00,000.
20% tax is applicable with income from Rs. 5,00,000 - Rs. 10,00,000.
30% tax is applicable with income from Rs. 5,00,000 – Rs. 10,00,000.
Investment up to maximum Rs.1.5 lakh is applicable for tax exemption under section 80C of Income Tax Act and can save up to Rs. 46,800 in taxes.
Based on the annual income earned by an individual, the following table shows different income tax rates applicable in India. The tax slabs have been arranged by the category and profile of the tax payers.
Income tax is a tax imposed by the government on the income earned by individuals and businesses. One must file an income tax return to justify his/her income. In this regard, to avail tax advantages to its fullest, it is crucial to understand the existing income tax slab for the fiscal year 2019-20.
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 4% of Income Tax |
Above Rs.10 Lakh | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Under budget 2019 the tax rebate of Rs. 12,500 under Section 87A of IT Act 1961 is available to the individuals who have a yearly income up to Rs.5 lakhs.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 4% of Income Tax |
Above Rs.10 Lakh | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.3 lakh | Nil | Nil |
Rs.3,00,001-Rs.5 Lakh | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 4% of Income Tax |
Above Rs.10 Lakh | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.5 lakh | Nil | Nil |
Rs.5,00,001-Rs.10 Lakh | 20% | 4% of Income Tax |
Above Rs.10 Lakh | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Turnover Particulars | Tax Rates |
In case the gross turnover is up to Rs.400 Crore in the financial year 2017-18 | 25% |
In case the gross turnover is exceeding Rs.400 Crore in financial year 2017-18 | 30% |
Where the company opted for Section 115BA | 25% |
Where the company opted for Section 115BAA | 22% |
Where the company opted for Section 115BAB | 15% |
Surcharge: If the taxable income is more than Rs.1 crore but less than Rs.10 crore than a surcharge of 7% of income tax is applicable.
Surcharge: If the taxable income is more than Rs.10 crore than a surcharge of 12% of income tax is applicable.
30% tax rate is applicable for any partnership firms & limited liability partnership (LLP).
Surcharge is applicable if the taxable income is more than Rs.10 crore than a surcharge of 12% of income tax is applicable.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
30% tax rate is applicable for local authorities.
Surcharge is applicable if the taxable income is more than Rs.10 crore than a surcharge of 12% of income tax is applicable.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Nature of Income | Tax Rate |
If any foreign company/entity functioning in India receives income as royalty compensated by the Indian government against the agreement implemented with the Indian concern (After 31st March 1961, and before 1St April 1976) | 50% |
If any foreign company/entity functioning in India receives income as fees for any technical service provided according to the agreement implemented with the Indian concern (After 29th February 1964, and before 1St April 1976) | 50% |
Any other additional income earned by foreign company operating in India. | 40% |
2% surcharge is applicable in case the income is between Rs. 1 crore - Rs. 10 crores.
5% surcharge is applicable in case the income is above Rs. 10 crores.
Rural/Urban/Semi Urban excluding Agricultural Societies and Self Help Group (SHG)
Income Threshold | Applicable Tax Rate |
Up to Rs. 10,000 | 10% |
Rs. 10,001- Rs. 20,000 | 20% |
Over Rs. 20,001 | 30% |
In case the taxable income is more than Rs.1crore than a surcharge of 12% of income tax is applicable.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Income Tax Slab for HUF and individuals less than 60 years of age.
Income Range Per Annum | Tax Rate FY 2019-20, AY 2020-21 | Tax Rate FY 2018-19, AY 19-20 |
Up to 2.5 lakhs | No tax | No tax |
Rs. 2,50,000- Rs.5,00,000 | 5% + 4% cess | 5%+4% cess |
Rs.5,00,000-Rs. 10,00,000 | 20% +4% cess | 20% + 4% cess |
Rs.10,00,000-Rs.50,00,000 | 30%+ 4% cess | 30%+4% cess |
Rs.50,00,000- Rs.1,00,00,000 | 30%+10% surcharge+4%cess | 30%+10% surcharge+4%cess |
Above Rs.1,00,00,000 | 30%+15% surcharge+4%cess | 30%+15% surcharge+4%cess |
Tax rebate U/S 87(A) | 100% tax rebate ( Subject to maximum Rs.12,500) is applicable to the resident individuals whose total taxable income does not exceed Rs.5 lakh | 100% tax rebate ( Subject to maximum Rs.2,500) is applicable to the resident individuals whose total taxable income does not exceed Rs.3.5 lakh |
For financial year 2019-2020 and assessment year 2020-2021, the income tax slab has remained unchanged for all the citizens (including senior citizen).
The education cess of 4% on income tax is same as previous year.
Standard deduction for salaried individuals has been increased from Rs. 40,000 – Rs. 50,000.
No changes have been made in the corporate tax. Corporate tax applicable is 25% for domestic companies whose turnover is up to Rs. 250 crores.
10% tax on long-term capital gain exceeding Rs 1 Lakh.
Short-term capital gains to continue to be taxed at 15%
Zero TDS on interest earned from FDs up to Rs 50,000
Tax exemption on interest from FD, Post Office up to RS 50,000 as per the Section 80TTB
Premium paid for senior citizen medical insurance is exempted up to Rs. 50,000
As per Section 80DDB, tax exemption for certain critical illnesses up to Rs. 60,000 in case of senior citizens, up to Rs. 80,000 in case of super senior citizens and Rs. 1 Lakh in case of all senior citizen
Income tax is applicable on dividend income received by the individual based on the source of dividend income.
Income Tax rates for HUFs/Individuals | Income Tax Section | |
If the accumulated dividend income received in a year is less than Rs.10,00,000 | Nil | Section 10(34) |
If the accumulated dividend income received in a year is more than Rs.10,00,000 | 10% | Section 115BBDA |
For financial year 2019-2020, the income tax slab rates are following:
Taxable Income | Income Tax Rates |
Up to Rs.2.5 lakh | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% |
Rs.5,00,001-Rs.10 Lakh | 20% |
Above Rs.10 Lakh | 30% |
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
For financial year 2019-2020, the income tax slab rates are following:
Taxable Income | Income Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 4% of Income Tax |
Above Rs.10 Lakh | 30% | 4% of Income Tax |
Income tax slab rates for freelancers are same as individuals and HUFs.
Taxable Income | Income Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 4% of Income Tax |
Above Rs.10 Lakh | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Income tax rates for doctors are same as of salaried individuals.
Taxable Income | Income Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 4% of Income Tax |
Above Rs.10 Lakh | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs.50,00,000 and less than Rs.1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs.1,00,00,000.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
Income Tax Act 1961 consists of the provisions of income tax which is applicable uniformly to the whole of India and is effective since 1962. The Income Tax Act contains different provisions to determine tax liability, taxable income, procedure for assessment of penalties, etc.
Resident status of the assesse
Income of assesse
Rate of tax
Assessment year
Gross income
Charge of Income Tax
A Hindu Undivided Family (HUF)
Any salaried individual.
A firm
A company
Any local authority
A body of individual (BOI)or an association of person whether incorporated or not.
Income tax slab rates for individual tax payers & Hindu Undivided Family (HUF) (Less than 60 years of age) FY 18-19 (Part 1)
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 3% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 3% of Income Tax |
Above Rs.10 Lakh | 30% | 3% of Income Tax |
Individuals can make investment and save up to Rs. 46,800 on taxes.
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of surcharge.
* For FY 2018-2019, the limit of tax exemption is up to Rs.2.5 lakhs for individuals and Hindu Undivided Family (HUF), except for those who are covered under part (II) and Part (III).
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.3 lakh | Nil | Nil |
Rs.3,00,001-Rs.5 Lakh | 5% | 3% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 3% of Income Tax |
Above Rs.10 Lakh | 30% | 3% of Income Tax |
Individuals can make investment and save up to Rs. 46,800 on taxes.
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
* For FY 2017-2018, the tax exemption limit is up to Rs.3 lakhs except for those who are covered under part (I) and Part (III).
Annual Income | Income Tax Rates |
Up to Rs.5 lakh | Nil |
Rs.5,00,001-Rs.10 Lakh | 20% |
Above Rs.10 Lakh | 30% |
Individuals can make investment and save up to Rs. 46,800 on taxes.
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
* For FY 2017-2018, the tax exemption limit is up to Rs.5 lakhs except for those who are covered under part (I) and Part (II).
Turnover Particulars | Income Tax Rates |
In case the gross turnover in the preceding year is less that or up to Rs.50 crore | 25% |
In case the gross turnover in the preceding year is more that Rs.50 crore | 30% |
Cess: 3% of corporate tax
Surcharge: If the taxable income is more than Rs.1 crore but less than Rs.10 crores than a surcharge of 7% of income tax is applicable.
Surcharge: If the taxable income is more than Rs.10 crores than a surcharge of 12% of income tax is applicable.
Therefore, it is suggested to opt for either of the tax regimes after assessing the tax slabs and the income group that you fall into. If you are an avid tax planner it makes sense to stick to the old one.