The 2021 Union budget made no provision for tax relief for taxpayers. Finance Minister Nirmala Sitharaman has not made any changes in income tax brackets or rates have been proposed. It also did not grant any additional tax exemptions or deductions. Without change in the basic exemption limit, income tax slabs and tax rates, an individual taxpayer will continue to pay tax at the same applicable rates in
fiscal year 2020-21.
As of April 1, 2020, a salaried individual must choose between the new and the old income tax regime. Budget 2020 introduced a new income tax regime with reduced tax rates for those who wish to forgo 70 tax exemptions and deductions under it.
This new tax system has been made optional and continues to coexist with the old / existing one.
Income tax rate and slabs under new tax regime for fiscal year 2021-22
| Total income (Rs) |
Income tax rate
|
| Up to 2.5 lakh |
None |
| From 2,500,001 to 5,000,000 Rs |
5 percent |
| From 5,00,001 to Rs 7,50,000 |
10 percent |
| From 7,50,001 to 10,00,000 |
15 percent |
| From 10,00,001 to Rs 12,50,000 |
20 percent |
| From 12.50.001 to 15.00,000 |
25 percent |
| Above 15,00,000 |
30 percent |
Under the old tax regime, the basic tax exemption ceiling for a natural person depends on his age and residence status.
Here are the last income tax brackets for the 2021-22 fiscal year under the old tax system:
Income tax slabs for resident individuals under the age of 60 for 2020-2021
| Taxable income slabs |
Income tax rate and cess |
| Up to Rs 2.5 lakh |
None |
| Rs 2,500,001 to Rs 5,000,000 |
5% of (Total income minus Rs 2.50,000) + 4% cess |
| 5,000,001 to 10,000,000 rupees |
Rs 12,500 + 20% of (Total income minus Rs 5,000,000) + 4% cess |
| Rs 10.00,001 and more |
Rs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess |
Income tax slabs for resident individuals aged 60 to 80 (Senior Citizen) for fiscal year 2020-21
| Taxable income slabs |
Income tax rate and cess |
| Up to Rs 3 lakh |
None |
| Rs 3,00,001 to Rs 5,00,000 |
5% of (Total income minus Rs 3,00,000) + 4% cess |
| 5,000,001 to 10,000,000 rupees |
10,000 Rs + 20% of (Total income minus 5,000,000 Rs) + 4% cess |
| Rs 10.00,001 and more |
Rs 1 10,000 + 30% of (Total income minus Rs 10,000,000) + 4% cess |
Income tax slabs for resident individuals over 80 (Super Senior Citizen) FY 2020-21
| Taxable income slabs |
Income tax rate and cess
|
| Up to Rs 5 lakh |
None |
| 5,000,001 to 10,000,000 rupees |
20% of (Total income minus Rs 5,00,000) + 4% cess |
| Rs 10.00,001 and more |
Rs 1,000,000 + 30% of (Total income minus Rs 10,000,000) + 4% cess |
