Income tax in India collects tax from individual taxpayers based on the slab system. The slab system means that different tax rates are ensured for different income brackets. These tax rates will continue to rise as taxpayer incomes increase. Here you will get to know more about income tax slab for AY 2021-22. Let’s move on.
This type of taxation allows for a progressive and fair tax system within the country. Such income tax slabs usually undergo change with each budget.
What Is the Income Tax Slab for 2021
These slab rates vary by taxpayer category. Income tax divides “individual” taxpayers into three categories:
- Individuals (under 60) including residents and non-residents
- Resident seniors citizens (ages 60-80)
- Resident Super Senior citizens (Age 80 and over)
Tax regimes under the age of 60. Let’s see.
| Net Taxable Income | Income Tax Slab Rates (FY 2021)under the New Tax Regime | Income Tax Slab Rates (FY 2021)under the Old Tax Regime |
| Up to Rs 2.5 lakh | Exempt | Exempt |
| Rs 2,50,001 to Rs 5 lakh | 5% | 5% |
| Rs 5,00,001 to Rs 7.5 lakh | 10% | 20% |
| Rs 7,50,001 to Rs 10 lakh | 15% | 20% |
| Rs 10,00,001 to Rs 12.5 lakh | 20% | 30% |
| Rs 12,50,001 to Rs 15 lakh | 25% | 30% |
| Over Rs. 15 lakh | 30% | 30% |
Income Tax Slabs FY 2021-22 for Senior Citizen Taxpayers
In India, income tax slab for AY 2021-22. Senior citizen taxpayer is between the ages of above 60 and below 80. These taxpayers enjoy a higher basic exemption of Rs 300,000 compared to under-60 taxpayers under the old tax regime. However, senior taxpayers who choose the new tax regime will not be able to benefit from higher tax reliefs. The following table summarizes (FY2021-22) income tax rates for seniors in India.
| Net Taxable Income | Income Tax Slab Rates (FY 2021)under the New Tax Regime | Income Tax Slab Rates (FY 2021)under the Old Tax Regime |
| Rs 2,50,001 to Rs 3 lakh | Nil | Nil |
| Rs 3,00,001 to Rs 5 lakh | 5% | 5% |
| Rs 5,00,001 to Rs 7.5 lakh | 10% | 20% |
| Rs 7,50,001 to Rs 10 lakh | 15% | 20% |
| Rs 10,00,001 to Rs 12.5 lakh | 20% | 30% |
| Rs 12,50,001 to Rs 15 lakh | 25% | 30% |
| Over Rs. 15 lakh | 30% | 30% |
Income Tax Slabs FY 2021-22 for Super Senior Citizen Taxpayers
The maximum income tax exemption is Rs. 5,00,000 for super seniors aged 80 and over.
| Net Taxable Income | Income Tax Slab Rates (FY 2021) |
| Rs 00.00 to Rs 5 lakh | Nil |
| Rs 5 lakh to 10 lakh | 20% |
| Over Rs. 10 lakh | 30% |
What Is the Basic Exemption Limit for AY 2021-22
The income tax exemption limit is up to Rs 2,50,000 for individuals, HUF under 60 and NRIs. A 4% health and education tax will be added to the tax amount.
Surcharge:
10% of income tax if gross income exceeds Rs.50 lakh up to Rs.1 crore.
15% of income tax if gross income exceeds Rs.1 crore.
What Is 80D in Income Tax
The Section 80D deduction can save taxpayers a lot of expensive medical bills.
To take full advantage of these perks and benefits, you need to know the finer points of your health insurance Section 80D deduction. Here’s everything you need to know!
You don’t have to provide any evidence for the application process, but you do need to know who qualifies.
- Self, dependent parent, spouse, and dependent child qualify for that.
Please note that Section 80D tax benefits are not available if the premium payment is paid in cash. You should write a check for this so you can take advantage of all the benefits.
You may pay your health insurance premiums in a non-cash manner to claim the tax benefits under this section. The benefits will be available for the amount paid for the treatment of senior citizens (aged 60 years and above) along with medical expenditure for a preventive health check-up.
Under Section 80D of the ITA, you can claim tax exemption up to ₹5,000 for both yourself and your family members, and you can also pay the amount in cash.
You get to know the 80D maximum limit and how much you can actually save by opting for this
Here are the deduction limits according to eligibility:
- For insurance premium payments (spouse, children, and self), the maximum deductible is INR 25,000.
- If the taxpayer paying the health insurance premium is above 60 years of age, a deduction of up to Rs 1,00,000 can be claimed.
- Individuals can claim an 80D deduction of up to ₹50,000 for dependent parents under the age of 60. The maximum amount is ₹75,000 if your parents are over 60 years of age.
What Is the Standard Deduction for Fy 2021-22
Standard deduction is a fixed deduction of Rs. 50,000 from taxable income based on the main salary. This tax benefit can be claimed regardless of the actual amount spent on:
Transportation expenses, and medical allowance.
The purpose of introducing the standard deduction is to
- Reduce paperwork and allow deductions regardless of actual expenses.
- Tax relief for middle-class employees
- provide benefits to pensioners
The standard deduction cannot exceed the salary amount. The maximum deduction is Rs. 50,000 or the salary amount, whichever is less.
Income Tax Calculator Ay 2021-22 Excel
Income Tax Calculator in Excel for the Fiscal Year 2021-2022 0r 2022-2023. Choose a better option between the old and new tax regime Individuals and HUF 115BAC
you must first review the tax liability of both options so that you can choose the better one.
- Open it as read-only and enter your income and investment details in the blue cells of the Calculations and IT sheet.
- Enable Macros to enable macros.
- Income tax for both options will then be automatically calculated for both options.
- After entering, save the file.
- Copy this file and click Empty for others to use. This will remove the entry in the blue cell. Then use this file again.
Frequently Asked Questions (FAQs):-
Is 80C deduction available in old tax regime
Yes, section 80C allows you to claim deductions for certain investments/expenses such as Investment in EPF, PPF, principal repayment of house loan, etc
Conclusion
To continue to pay taxes at the current rate. The taxpayer can take advantage of discounts and exemptions by staying in the old regime and paying taxes at the existing higher rate. Hopefully, we have covered all doubts about the income tax slab for AY 2021-22.