INCOME TAX SLAB FOR AY 2021-22 / FY 2020-21 : INCOME TAX TUTORIAL FOR AY 2021 -22

INCOME TAX SLAB FOR AY 2021-22 / FY 2020-21

Today in this post we will discuss Income Tax Slab for FY 20-21 and AY 20-21 

As per Budget 2018 in lieu of exemption of transport allowance and reimbursement of miscellaneous medical expenses. The Standard deduction limit for FY 2019-20 & FY 2020-21 the limit of the standard deduction is Rs 50,000. Date: 01 Feb, 2021 and as per  Budget 2021 - No changes in the Income Tax Slab Rate (old as well as new) for FY 20-21.(01-Feb-2021)

What Is Income Tax?

Well Friends Income Tax is a kind of direct tax levied by Central Govt. of India on personal Income of every individual, LLP, HUF, Company, and Partnership Firms, If their income is above trash hold limit for the particular Financial Year  set by the Govt. of India that is Central Govt.

What is Income Tax Slub?

As we know Income Tax is the tax levied on Annual Income of Individual or Firms total annual Income. And Income Tax Slab will decide that how much Tax will you pay for your annually income.

Income Tax Slab with set the different percentage of Tax rate on different range of Income. For Higher income the tax rate is also set at higher rate as per Income Tax Slub.

 

As per CBDT there are two Income tax slabs for AY 21-22 and FY 20-21 Individual and HUF Tax Payers. For AY 21-22 Individuals have option to choice between Two Tax Slabs  as per their requirement.

A) New Income Tax Slab Rate for AY 2021-22 and FY 2020-21

From Rs. 0/- to Rs. 2,50,000/-  - Tax is nil

 

From Rs. 2,50,001/- to Rs. 5,00,000/- - Tax will be charged at 5% rate and 87A applicable (if filed before due date.

From Rs. 5,00,001/- to Rs. 7,50,000/- - Tax rate @ 10%

From Rs. 7,50,001/- to Rs. 10,00,000/- - Tax rate @ 15% 

From Rs. 10,00,001/- to Rs. 12,50,000/- - Tax rate @ 20%

From Rs. 12,50,001/- to Rs. 15,00,000/- - Tax rate @ 25%

 

For Income above  Rs.15,00,000/-  - Tax rate @ 30%

Note -

 

A) Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax Slabs.

B) Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.

C) Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases. (increased from 3% since FY 18-19)

D) Surcharge applicable as per tax rates below in all categories mentioned above:

    10% of Income tax if total income > Rs.50 lakh

    15% of Income tax if total income > Rs.1 crore

    25% of Income tax if total income > Rs.2 crore

    37% of Income tax if total income > Rs.5 crore