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

The Income Tax Slabs for FY 2021-22 (AY 2022-23) help taxpayers understand the applicable tax rates under both the old and new tax regimes, based on their annual income levels.
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3 min
18-March-2025

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.

New 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. )

Old Tax Regime

New Tax Regime

Up to Rs. 2.5 lakh

Nil

Nil

Rs. 2.5 lakh – Rs. 5 lakh

5%

5%

Rs. 5 lakh – Rs. 7.5 lakh

20%

10%

Rs. 7.5 lakh – Rs. 10 lakh

20%

15%

Rs. 10 lakh – Rs. 12.5 lakh

30%

20%

Rs. 12.5 lakh – Rs. 15 lakh

30%

25%

Above Rs. 15 lakh

30%

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 Slabs in FY 2021–22 (AY 2022–23) for Senior Citizens

Senior citizens aged between 60 and 80 years enjoy higher exemption limits under the old tax regime. However, the new tax regime offers uniform slabs for all individuals regardless of age, with lower rates but fewer deductions.

Income tax slabs in FY 2021–22 (AY 2022–23) – Old vs. new regime for senior citizens (60 to 80 years)

Annual Income (Rs. )

Old Tax Regime (Senior Citizens)

New Tax Regime (All Individuals)

Up to Rs. 3 lakh

Nil

Nil

Rs. 3 lakh – Rs. 5 lakh

5%

5%

Rs. 5 lakh – Rs. 7.5 lakh

20%

10%

Rs. 7.5 lakh – Rs. 10 lakh

20%

15%

Rs. 10 lakh – Rs. 12.5 lakh

30%

20%

Rs. 12.5 lakh – Rs. 15 lakh

30%

25%

Above Rs. 15 lakh

30%

30%

 

Note:

  • Under the old regime, senior citizens benefit from a higher basic exemption limit of Rs. 3 lakh.

  • Under the new regime, tax slabs are lower but most deductions (like 80C, 80D, HRA) are not allowed.

  • Senior citizens can opt for either regime based on their income and eligibility for deductions.

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

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. )

Old Tax Regime (Super Senior Citizens)

New Tax Regime (All Individuals)

Up to Rs. 5 lakh

Nil

Nil

Rs. 5 lakh – Rs. 7.5 lakh

20%

10%

Rs. 7.5 lakh – Rs. 10 lakh

20%

15%

Rs. 10 lakh – Rs. 12.5 lakh

30%

20%

Rs. 12.5 lakh – Rs. 15 lakh

30%

25%

Above Rs. 15 lakh

30%

30%



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.

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Surcharge Rates Based on Income for Individuals, HUFs & Artificial Judicial Persons (FY 2021–22)

The surcharge is levied on the amount of income tax payable, not directly on income. It increases progressively with income levels to ensure equitable tax distribution.

Total Income (Rs. )

Surcharge Rate

Up to Rs. 50 lakh

Nil

Rs. 50 lakh – Rs. 1 crore

10% of income tax

Rs. 1 crore – Rs. 2 crore

15% of income tax

Rs. 2 crore – Rs. 5 crore

25% of income tax (if income doesn’t include dividend/capital gains under Sections 111A, 112, or 112A)

Rs. 5 crore and above

37% of income tax (if income doesn’t include dividend/capital gains under Sections 111A, 112, or 112A)

For dividend income / capital gains (Sec 111A, 112, 112A)

Maximum surcharge is capped at 15%

 

Note:

Surcharge is an additional tax on the total income tax amount and varies based on income thresholds. For capital gains under Sections 111A (short-term equity), 112 (long-term assets), and 112A (long-term equity), surcharge is capped at 15% to provide relief to high-income investors. This cap applies even if the income exceeds ₹2 crore or ₹5 crore.

Surcharge Rates Based on Income for AOP or BOI (FY 2021–22)

The following surcharge rates apply to Association of Persons (AOPs) or Body of Individuals (BOIs), based on their total taxable income for the financial year.

Total Income (Rs.)

Surcharge Rate

Up to Rs. 50 lakh

Nil

Rs. 50 lakh – Rs. 1 crore

10% of income tax

Rs. 1 crore – Rs. 2 crore

15% of income tax

Rs. 2 crore – Rs. 5 crore

25% of income tax (if not including dividend/capital gains under Sec 111A, 112, or 112A)

Above Rs. 5 crore

37% of income tax (if not including dividend/capital gains under Sec 111A, 112, or 112A)

For income including capital gains (Sec 111A/112/112A)

Surcharge capped at 15%

 

Note:

AOPs and BOIs are taxed similarly to individuals, but surcharge applicability can differ depending on income sources. If the total income includes specific capital gains or dividend income, surcharge is limited to 15%, offering significant tax savings for investment-oriented entities or groups. Proper tax planning can optimise the surcharge impact.

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 (which includes investments in a term insurance plan), 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.

Related articles:

Income Tax Slabs for FY 2022-23

Income Tax Slabs for FY 2023-24

Tax Benefits of Term Insurance

Postal Life Insurance Tax Benefits

Tax Benefits of Endowment Plans

Tax Exemption on Savings Plans

Frequently asked questions

Are there separate slab rates for different categories?
Yes, income tax slab rates vary based on age and taxpayer category. Individuals below 60 years, senior citizens (60-80 years), and super senior citizens (above 80 years) have different exemption limits under the old regime. However, under the new tax regime, the same slab rates apply to all taxpayers, regardless of age.

Is there any standard deduction for FY 2020-21?
Yes, a standard deduction of Rs. 50,000 was available for salaried individuals and pensioners in FY 2020-21 under the old tax regime. This deduction helped reduce taxable income without requiring specific expenses. However, under the new tax regime, the standard deduction is not available, and taxpayers must forego exemptions in exchange for lower tax rates.

What are the conditions for opting the new tax regime?
Taxpayers opting for the new tax regime must forgo several exemptions, including HRA, standard deduction, and deductions under Section 80C, 80D, and 80E. The new regime offers lower tax rates but no deductions. Salaried individuals can choose between the old and new regimes annually, while business income taxpayers must opt-in only once.

What is the income tax slab for women?
There is no separate income tax slab for women in India. Women are taxed under the same slabs as male taxpayers based on their age. However, under the old tax regime, all individuals can avail deductions under Section 80C, 80D, and other exemptions to reduce taxable income. The new regime has uniform tax rates.

What were the income tax slabs for the financial year 2021–22?

The income tax slabs for FY 2021–22 differed under the old and new regimes. Under the old regime, slabs included standard deductions and exemptions, while the new regime offered lower rates without most deductions. Taxpayers could choose either based on which structure suited them better.

What were the new tax regime rates applicable for FY 2022–23?

The new tax regime for FY 2022–23 had lower tax rates but excluded most exemptions and deductions. It included five slabs, starting with 5% for income above ₹2.5 lakh and going up to 30% for income above Rs. 15 lakh. It offered a simplified taxation structure for individuals.

How can I calculate income tax on salary for FY 2021–22 with an example?

To calculate salary tax for FY 2021–22, add your income, subtract deductions (like Rs. 50,000 standard deduction), then apply the relevant slab rate. For example, for Rs. 7.5 lakh salary under the old regime, after deductions, tax would be calculated on the balance income using slab rates plus cess.

Is income of Rs. 7 lakh completely tax-free?

Income up to Rs. 7 lakh can be tax-free under the new regime (FY 2022–23) due to the rebate under Section 87A. This rebate provides relief up to Rs. 25,000 for those earning Rs. 7 lakh or less annually, effectively making them exempt from paying any income tax.

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