Income Tax Slabs and Rates for FY 2021-22 (AY 2022-23)

The income tax slabs for FY 2021-22 (AY 2022-23) were announced in the Union Budget 2021, with no significant changes to the tax structure. The Indian government has continued offering taxpayers the option to choose between the old tax regime with various deductions and exemptions and the new tax regime with lower tax rates but minimal exemptions.

The new regime aims to simplify taxation, while the old system allows individuals to reduce their tax liability through various deductions. Understanding these tax slabs is crucial for financial planning, ensuring compliance, and optimising tax outgo. Below is a detailed breakdown of the tax slabs applicable for individual taxpayers, Hindu Undivided Families (HUFs), and senior citizens for the financial year 2021-22.

Latest income tax slabs for FY 2021-22 after Budget 2021

The income tax slabs for FY 2021-22 (AY 2022-23) remained unchanged after Budget 2021. Taxpayers can choose between the old tax regime with exemptions and deductions or the new tax regime with lower tax rates but no major exemptions. Here is the breakdown of the new tax regime slabs for FY 2021-22:

Income up to Rs. 2.5 lakh – Nil

Rs. 2,50,001 to Rs. 5 lakh – 5%

Rs. 5,00,001 to Rs. 7.5 lakh – 10%

Rs. 7,50,001 to Rs. 10 lakh – 15%

Rs. 10,00,001 to Rs. 12.5 lakh – 20%

Rs. 12,50,001 to Rs. 15 lakh – 25%

Income above Rs. 15 lakh – 30%

The old regime allows deductions like Section 80C, 80D, HRA, while the new regime is simpler but removes exemptions. Taxpayers must evaluate both options before filing.

Income tax slabs in FY 2021-22 (AY 2022-23) for HUF and individuals

Hindu Undivided Families (HUFs) and individual taxpayers below 60 years can opt for either the old tax regime with deductions or the new tax regime with lower rates but no exemptions. Below are the income tax slabs under the new regime:

Annual Income (Rs.)	Tax Rate
Up to 2.5 lakh	Nil
2,50,001 – 5 lakh	5%
5,00,001 – 7.5 lakh	10%
7,50,001 – 10 lakh	15%
10,00,001 – 12.5 lakh	20%
12,50,001 – 15 lakh	25%
Above 15 lakh	30%

The old regime provides deductions under Section 80C, 80D, HRA, and others. Taxpayers must compare both regimes before choosing the best option.

Income tax slab for super senior citizens in AY 2021-22 (AY 2022-23)

A super senior citizen is an individual aged 80 years or above. They benefit from a higher basic exemption limit of Rs. 5 lakh under the old tax regime. However, in the new regime, the same slabs apply to all taxpayers, irrespective of age.

Annual Income (Rs.)	Tax Rate
Up to 5 lakh	Nil
5,00,001 – 10 lakh	10%
Above 10 lakh	20%

In the new tax regime, super senior citizens are taxed as per the general slabs, with no additional benefits. Those who claim deductions under Sections 80C, 80D, and 80TTB may find the old regime more beneficial.

Income tax slabs & rates for senior citizens in AY 2021-22 (AY 2022-23)

A senior citizen is any individual between 60 and 80 years of age. Under the old tax regime, they get a higher exemption limit of Rs. 3,00,000. The new tax regime does not offer age-based benefits.

Annual Income (Rs.)	Tax Rate
Up to 3,00,000	Nil
3,00,001 – 5,00,000	5%
5,00,001 – 10,00,000	20%
Above 10,00,000	30%

Under the new regime, the tax slabs remain the same for all taxpayers. Senior citizens should evaluate deductions under Section 80C, 80D, and 80TTB before choosing their tax regime.

Understanding income tax scenarios in the new regime - FY 2021-22 (AY 2022-23)

The new tax regime offers lower tax rates but removes most exemptions.

Individuals earning up to Rs. 5 lakh can claim a rebate under Section 87A.

Taxpayers must compare both regimes before filing returns to determine which is beneficial.

Salaried individuals who claim deductions like HRA, 80C, and home loan interest may find the old regime more beneficial.

Businesses and professionals may prefer the new regime due to lower rates and fewer compliance requirements.

What are the exemptions/deductions unavailable under the new tax regime in FY 21-22

House Rent Allowance (HRA)

Standard deduction of Rs. 50,000

Deductions under Section 80C (PPF, LIC, EPF, etc.)

Deductions under Section 80D (Health Insurance Premium)

Interest on home loan under Section 24(b)

Leave Travel Allowance (LTA)

Deductions under 80E (Education Loan Interest)

Various other deductions under Chapter VI-A

Conclusion

The income tax slabs for FY 2021-22 offer taxpayers the flexibility to choose between the old and new tax regimes. While the new regime simplifies tax filing with lower rates, it eliminates popular exemptions. Taxpayers should carefully evaluate both options based on their financial circumstances and deductions. Understanding these slabs and exemptions is essential for efficient tax planning and optimising savings.