There are different tax rates applicable to each category of the taxpayer. Let us discuss tax rates applicable on each category one by one:
For Individual / HUF
Under Old Regime
In case of every individual who has not yet attained the age of 60 years or any Hindu Undivided Family (HUF), be it resident or non-resident, tax rates shall be as under:
| Total Income | Rates of Income Tax |
| 0- Rs. 2,50,000 | NIL |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% |
| > Rs. 10,00,000 | 30% |
In case of resident senior citizen (i.e., who is of the age of 60 years or more but less than 80 years) at any time during the previous year:
| Total Income | Rates of Income Tax |
| 0 – Rs.3,00,000 | NIL |
| Rs.3,00,000 – Rs.5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% |
| > Rs. 10,00,000 | 30% |
In case of resident super senior citizen (i.e., who is of the age of 80 years or more) at any time during the previous year:
| Total Income | Rates of Income Tax | ||
| 0 – Rs.5,00,000 | NIL | ||
| Rs.5,00,000 – Rs.10,00,000 | 20% | ||
| > Rs.10,00,000 | 30% | ||
Under New Regime
Applicable for All Individuals & HUF
| Total Income | New Regime Income Tax Slab Rates for AY 2021-22 |
| Rs 0.0 – Rs 2.5 Lakhs | NIL |
| Rs. 3.00 lakhs – Rs 5.00 Lakhs | 5% (tax rebate u/s 87A is available) |
| Rs. 3.00 lakhs – Rs 5.00 Lakhs | |
| Rs. 5.00 lakhs- Rs 7.5 Lakhs | 10% |
| Rs 7.5 lakhs – Rs 10.00 Lakhs | 15% |
| Rs 10.00 lakhs – Rs. 12.50 Lakhs | 20% |
| Rs. 12.5 lakhs- Rs. 15.00 Lakhs | 25% |
| > Rs. 15 Lakhs | 30% |
Surcharge on Income-tax for Individuals and HUF
- 10% of such income tax where the total income exceeds Rs.50,00,000 but does not exceed Rs.1 crore.
- 15% of such income tax, if the total income exceeds Rs. 1 crore but does not exceeds Rs. 2 crores.
- 25% of such Income Tax, if the total income exceeds Rs. 2 crores but does not exceeds Rs. 5 crores.
- 37% of such Income Tax, if the total income exceeds Rs. 5 crores.
For Partnership Firm / LLP
In case of a FIRM, 30% of the total income. The income tax so calculated or in section 111A or section 112 or section 112A shall, in case of every firm, be increased by a surcharge of 12% of such income tax, if the total income exceeds Rs. 1 crore.
For Companies
Domestic Company
Tax Rate:
| Where the total turnover or the gross receipts in Previous Year 2018-19 does not exceed Rs. 400 crores | – 25% of the total income |
| Other than referred in (i) above | – 30% of the total income |
Surcharge – 7% (if the total income exceeds Rs. 1 crore but does not exceed Rs. 10 crores)
– 12% (if total income exceeds Rs. 10 crores)
Foreign Company
Tax Rate – 40%of the total income.
Surcharge – 2% (if the total income exceeds Rs. 1 crore but does not exceed Rs. 10 crores)
– 5% (if total income exceeds Rs. 10 crores)
Health and Education Cess
In all the above cases, the income tax computed above as increased by a surcharge, if any, and after allowing marginal relief shall be further increased by Health and Education Cess of 4% for assessment year 2021-22.
Rebate under Section 87A A rebate under section 87A is one of the income tax provisions that help taxpayers reduce their income tax liability. You can claim an income tax rebate under section 87A if your total income does not exceed Rs. 5 lakh in a financial year. Your income tax liability becomes nil after claiming the rebate under section 87A.
