Income Tax Rates for Financial Year 2021-22 / AY 2022-23

Income Tax Rates for Financial Year 2021-22 / AY 2022-23

In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person.

Individuals ( Other than senior and super senior citizen)

Net Income RangeRate of Income-tax AY 2022-23Rate of Income-tax AY 2021-22
Up to Rs. 2,50,000 - -
Rs. 2,50,000 to Rs. 5,00,0005%5%
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%

Senior Citizen (who is 60 years or more at any time during the previous year)

Net Income RangeRate of Income-tax AY 2022-23Rate of Income-tax AY 2021-22
Up to Rs. 3,00,000 - -
Rs. 3,00,000 to Rs. 5,00,0005%5%
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%

Super Senior Citizen (who is 80 years or more at any time during the previous year)

Net Income RangeRate of Income-tax AY 2022-23Rate of Income-tax AY 2021-22
Up to Rs. 5,00,000 - -
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%

Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)

Net Income RangeRate of Income-tax AY 2022-23Rate of Income-tax AY 2021-22
Up to Rs. 2,50,000 - -
Rs. 2,50,000 to Rs. 5,00,0005%5%
Rs. 5,00,000 to Rs. 10,00,00020%20%
Above Rs. 10,00,00030%30%

Note: A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A . It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.

Special tax Rate for Individual and HUFs

The Finance Act, 2020, has provided an option to Individuals and HUF for payment of taxes at the following reduced rates from Assessment Year 2021-22 and onwards:

Total Income (Rs)Rate
Up to 2,50,000Nil
From 2,50,001 to 5,00,0005%
From 5,00,001 to 7,50,00010%
From 7,50,001 to 10,00,00015%
From 10,00,001 to 12,50,00020%
From 12,50,001 to 15,00,00025%
Above 15,00,00030%

Note 1: A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.

Note 2: The option to pay tax at lower rates shall be available only if the total income of assessee is computed without claiming specified exemptions or deductions:

Partnership Firm

For the Assessment Year 2022-23, a partnership firm (including LLP) is taxable at 30%.

Local Authority

For the Assessment Year 2022-23, a local authority is taxable at 30%.

Domestic Company

Income-tax rates applicable in case of domestic companies for assessment year 2021-22 and 2022-23 are as follows:

Domestic CompanyAssessment Year 2021-22Assessment Year 2022-23
♦ Where its total turnover or gross receipt during the previous year 2018-19 does not exceed Rs. 400 crore25%NA
♦ Where its total turnover or gross receipt during the previous year 2019-20 does not exceed Rs. 400 croreNA25%
♦ Any other domestic company30%30%

Special Tax rates applicable to a domestic company

The special Income-tax rates applicable in case of domestic companies for assessment year 2021-22 and 2022-23 are as follows:

Domestic CompanyAssessment Year 2021-22Assessment Year 2022-23
♦ Where it opted for section 115BA25%25%
♦ Where it opted for Section 115BAA22%22%
♦ Where it opted for Section 115BAB15%15%

Foreign Company

Assessment Year 2021-22 and Assessment Year 2022-23

Nature of IncomeTax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government50%
Any other income40%

Co-operative Society

Assessment Year 2021-22 and Assessment Year 2022-23

Taxable incomeTax Rate
Up to Rs. 10,00010%
Rs. 10,000 to Rs. 20,00020%
Above Rs. 20,00030%

Special tax rates applicable to a Co-operative societies

Assessment Year 2022-23

Taxable incomeTax Rate
Any income22%

Surcharge :Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Rate of Surcharge

Range of IncomeRate of surcharge (AY 2022-23)Range of IncomeRate of surcharge (AY 2021-22)
Rs. 50 Lakhs to Rs. 1 Crore10%Rs. 50 Lakhs to Rs. 1 Crore10%
Rs. 1 Crore to Rs. 2 Crores15%Rs. 1 Crore to Rs. 2 Crore15%
Rs. 2 Crores to Rs. 5 Crores25%Rs. 2 Crores to Rs. 5 Crores25%
Rs. 5 crores to Rs. 10 Crores37%Rs. 5 crores to Rs. 10 Crores37%
Exceeding Rs. 10 Crores37%Exceeding Rs. 10 Crores37%

Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

Download rate charge income tax rate slab ay 2021-22

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