172 week ago — 4 min read
The Finance Minister Nirmala Sitharaman introduced new tax regime in Union Budget 2020, wherein there is an option for individuals and Hindu Undivided Families (HUF) to select tax slabs as per old tax slabs or new tax slabs.
Slab system means different tax rates are prescribed for different rates of income. Which means tax rates keep increasing with increase in taxpayer’s income.
These tax slabs are different for different categories of taxpayers. Income Tax Department has classified three categories of individual tax payers.
The below table explains the Income Tax Slabs and Rates for the FY 2021-22 (AY 2022-23) comparing the new tax regime and old tax regime.
Income Tax Slab Rates for the FY 2021-22 (AY 2022-23)
Income Tax Slab As per Old Regime |
Tax Rates as Per Old Regime |
Income Tax Slab As per New Regime |
Tax Rates as Per New Regime |
Upto Rs 3,00,000 |
Nil |
Upto Rs 2,50,000 |
NIL |
Rs 3,00,001 - Rs 5,00,000 |
5% |
Rs 2,50,001 - Rs 5,00,000 |
5% |
Rs 5,00,001 - Rs 10,00,000 |
20% |
Rs 5,00,001 - Rs 7,50,000 |
10% |
Above Rs 10,00,000 |
30% |
Rs 7,50,001 - Rs 10,00,000 |
15% |
|
|
Rs 10,00,001 - Rs 12,50,000 |
20% |
|
|
Rs 12,50,001 - Rs 15,00,000 |
25% |
|
|
Above 15,00,000 |
30% |
Frequently Asked Questions
1. Do I have to mandatorily opt for new tax regime while filing returns for FY 21-22?
2. Is the due date for filing an Income tax Return same for all the taxpayers?
3. What is the time period considered for the calculation of income tax?
Income tax is calculated on annual basis. It is calculated for the financial year starting from 1st April and ending on 31st March.
4. Who decides the IT slab rates and can they change?
Yes, IT slab rates can be changed. If there are changes in IT slab rates for the financial year then they are introduced in the Budget for that year and presented in Parliament.
Also read: Income Tax Return (ITR) Forms for AY 2021-22 issued
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