CENTRAL GOVERNMENT EMPLOYEES - INCOME TAX
INCOME TAX RATES
ASSESSMENT YEAR 2021-2022
RELEVANT TO FINANCIAL YEAR 2020-2021
The normal tax rates applicable to a resident individual will depend on the age of the individual.
However, in case of a non-resident individual the tax rates will be same irrespective of his age.
For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:
• Resident individual below the age of 60 years. i.e. born on or after 01-04-1961
• Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years. (i.e. born during 01-04-1941 to 31-03-1961)
• Resident individual of the age of 80 years or above at any time during the year. i.e. born before 01.04.1941
• Non-resident individual irrespective of the age.
Individuals and HUFs can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act)
The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain Exemptions and Deductions (like 80C, 80D, 80TTB, HRA) available in the Existing Tax Regime.
I. In case of an Individual (resident or non-resident) less than 60 years of age anytime during the previous year:
Existing Tax Regime
| Taxable Income |
Tax Rate |
| Up to Rs. 2,50,000 |
Nil |
| Rs. 2,50,001 to Rs 5,00,000 |
5% above Rs. 2,50,000 |
| Rs. 5,00,001 to Rs. 10,00,000 |
Rs. 12,500 + 20% above Rs. 5,00,000 |
| Above Rs. 10,00,000 |
Rs. 1,12,500 + 30% above Rs. 10,00,000 |
New Tax Regime u/s 115BAC
| Taxable Income |
Tax Rate |
| Up to Rs. 2,50,000 |
Nil |
| Rs. 2,50,001 to Rs 5,00,000 |
5% above Rs. 2,50,000 |
| Rs. 5,00,001 to Rs. 7,50,000 |
Rs. 12,500 + 10% above Rs. 5,00,000 |
| Rs. 7,50,001 to Rs. 10,00,000 |
Rs. 37,500 + 15% above Rs. 7,50,000 |
| Rs. 10,00,001 to Rs. 12,50,000 |
Rs. 75,000 + 20% above Rs. 10,00,000 |
| Rs. 12,50,001 to Rs. 15,00,000 |
Rs. 1,25,000 + 25% above Rs. 12,50,000 |
| Above Rs. 15,00,000 |
Rs. 1,87,500 + 30% above Rs. 15,00,000 |
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Health & Education Cess [see Note]
II. In case of an Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year:
Existing Tax Regime
| Taxable Income |
Tax Rate |
| Up to Rs. 3,00,000 |
Nil |
| Rs. 3,00,001 to Rs 5,00,000 |
5% above Rs. 3,00,000 |
| Rs. 5,00,001 to Rs. 10,00,000 |
Rs. 10,000 + 20% above Rs. 5,00,000 |
| Above Rs. 10,00,000 |
Rs. 1,10,000 + 30% above Rs. 10,00,000 |
New Tax Regime u/s 115BAC
| Taxable Income |
Tax Rate |
| Up to Rs. 2,50,000 |
Nil |
| Rs. 2,50,001 to Rs 5,00,000 |
5% above Rs. 2,50,000 |
| Rs. 5,00,001 to Rs. 7,50,000 |
Rs. 12,500 + 10% above Rs. 5,00,000 |
| Rs. 7,50,001 to Rs. 10,00,000 |
Rs. 37,500 + 15% above Rs. 7,50,000 |
| Rs. 10,00,001 to Rs. 12,50,000 |
Rs. 75,000 + 20% above Rs. 10,00,000 |
| Rs. 12,50,001 to Rs. 15,00,000 |
Rs. 1,25,000 + 25% above Rs. 12,50,000 |
| Above Rs. 15,00,000 |
Rs. 1,87,500 + 30% above Rs. 15,00,000 |
Less: Rebate under Section 87A [see Note]
Add: Surcharge and Health & Education Cess [see Note]
III. In the case of an Individual (resident or non-resident) 80 years of age or more anytime during the previous year:
Existing Tax Regime
| Taxable Income |
Tax Rate |
| Up to Rs. 5,00,000 |
Nil |
| Rs. 5,00,001 to Rs. 10,00,000 |
20% above Rs. 5,00,000 |
| Above Rs. 10,00,000 |
Rs. 1,00,000 + 30% above Rs. 10,00,000 |
New Tax Regime u/s 115BAC
| Taxable Income |
Tax Rate |
| Up to Rs. 2,50,000 |
Nil |
| Rs. 2,50,001 to Rs 5,00,000 |
5% above Rs. 2,50,000 |
| Rs. 5,00,001 to Rs. 7,50,000 |
Rs. 12,500 + 10% above Rs. 5,00,000 |
| Rs. 7,50,001 to Rs. 10,00,000 |
Rs. 37,500 + 15% above Rs. 7,50,000 |
| Rs. 10,00,001 to Rs. 12,50,000 |
Rs. 75,000 + 20% above Rs. 10,00,000 |
| Rs. 12,50,001 to Rs. 15,00,000 |
Rs. 1,25,000 + 25% above Rs. 12,50,000 |
| Above Rs. 15,00,000 |
Rs. 1,87,500 + 30% above Rs. 15,00,000 |
Add: Surcharge and Health & Education Cess [see Note]
a) SURCHARGE:
Surcharge is levied on the amount of income-tax at
following rates if the total income of an assessee exceeds specified limits:
|
Nature of Income
|
Range of Total Income
|
|
Up to Rs. 50 lakh
|
|
More than Rs. 50 lakh but up to Rs. 1 crore
|
More than Rs. 1 crore but up to Rs. 2 crore
|
More than Rs. 2 crore but up to Rs. 5 crore
|
More than Rs. 5 crore
|
|
Individual, HUF or Artificial Judicial Person
|
|
Short-term capital gain covered under Section 111A
|
|
10%
|
15%
|
25%
|
37%
|
|
Long-term capital gain covered under Section 112A
|
|
10%
|
15%
|
25%
|
37%
|
|
Any other income*
|
|
10%
|
15%
|
25%
|
37%
|
|
* The Finance (No. 2) Act, 2019 has been amended to withdraw the
enhanced surcharge, i.e., 25% or 37%, as the case may be, from income
chargeable to tax under section 111A and 112A. Hence, the maximum rate
of surcharge on tax payable on such incomes shall be 15%. However, where
other income of a person does not exceed Rs. 2 crores but after
including the incomes as referred to in section 111A and 112A, the total
income exceeds Rs. 2 crores then irrespective of the amount of other
income, surcharge shall be levied at the rate of 15% on the amount of
tax payable on both normal income as well as income referred to in
section 111A and 112A.
|
|
AOP or BOI
|
|
Short-term capital gain covered under Section 111A
|
|
10%
|
15%
|
15%
|
15%
|
|
Long-term capital gain covered under Section 112A
|
|
10%
|
15%
|
15%
|
15%
|
|
Short term or Long term capital gains on transfer of certain securities
under section 115AD(1)(b)
|
|
10%
|
15%
|
15%
|
15%
|
|
Any other Income*
|
|
10%
|
15%
|
25%
|
37%
|
|
* The Finance (No. 2) Act, 2019 has been amended to withdraw the
enhanced surcharge, i.e., 25% or 37%, as the case may be, from income
chargeable to tax under section 111A, 112A and 115AD. Hence, the maximum
rate of surcharge on tax payable on such incomes shall be 15%. However,
where other income of a person does not exceed Rs. 2 crores but after
including the incomes as referred to in section 111A, 112A and 115AD,
the total income exceeds Rs. 2 crores then irrespective of the amount of
other income, surcharge shall be levied at the rate of 15% on the amount
of tax payable on both normal income as well as income referred to in
section 111A, 112A and 115AD.
|
a) The
surcharge shall be subject to marginal relief:
i)
Where income
exceeds Rs. 50 lakhs, the total amount payable as income-tax and surcharge shall
not exceed total amount payable as income-tax on total income of Rs. 50 lakhs by
more than the amount of income that exceeds Rs. 50 lakhs.
ii)
where income
exceeds Rs. 1 crore, the total amount payable as income-tax and surcharge shall
not exceed total amount payable as income-tax on total income of Rs. 1 crore by
more than the amount of income that exceeds Rs. 1 crore
iii)
where income
exceeds Rs. 2 crore, the total amount payable as income-tax and surcharge shall
not exceed total amount payable as income-tax on total income of Rs. 2 crore by
more than the amount of income that exceeds Rs. 2 crore
iv)
where income
exceeds Rs. 5 crore rupees, the total amount payable as income-tax and surcharge
shall not exceed total amount payable as income-tax on total income of Rs. 5
crore rupees by more than the amount of income that exceeds Rs. 5 crore rupees
b) Health and Education Cess:
The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.
c) Rebate under Section 87A:
The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.
PERMANENT ACCOUNT NUMBER (PAN)
Every assessee is required to obtain 10 alpha numeric Permanent Account Number (PAN) and quote the same in his returns, challans & correspondence. PAN can be obtained by applying in new Form No.49A at the designated Service Centres of UTITSL OR NSDL. PAN is essential for processing the Return of Income and for giving credit for taxes paid. If a person who is required to quote his Permanent Account Number fails to do so or intimates false number, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000.
INCOME TAX PAYMENTS
Advance tax payments and Self-assessment tax payments have to be made in Challan No.280.
Tax deductions specified under Chapter VIA of the Income Tax Act
These Deductions will not be available to a taxpayer opting for the New Tax Regime u/s 115 BAC, except for deduction u/s 80CCD (2) which will be applicable for New Tax Regime as well
80C, 80CCC, 80CCD (1)
Combined deduction limit of ₹ 1,50,000
80C
Deduction towards payments made to :
Life Insurance Premium Provident Fund Subscription to certain equity shares
Tuition Fees
National Savings Certificate,
Housing Loan Principal
Other various items
80CCC
Deduction towards payments made to :
Annuity plan of LIC or other insurer towards Pension Scheme
80CCD(1)
Deduction towards payments made to :
Pension Scheme of Central Government
80CCD(1B)
Deduction limit of ₹ 50,000
Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)
80CCD(2)
Deduction towards contribution made by an employer to the Pension Scheme of Central Government
If Employer is a PSU, State Government or Others Deduction limit of 10% of salary
If Employer is Central Government Deduction limit of 14% of salary
80D
Deduction towards payments made to :
Health Insurance Premium & Preventive Health check up
For Self / Spouse or Dependent Children ₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit
For Parents ₹ 25,000 (₹50,000 if any person is a Senior Citizen) ₹ 5,000 for preventive health check up, included in above limit
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
For Self/ Spouse or Dependent Children Deduction limit of ₹ 50,000 For Parents Deduction limit of ₹ 50,000
80DD
Deduction towards payments made towards
Maintenance or Medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme
Flat deduction of ₹ 75,000 available for a person with Disability, irrespective of expense incurred
The deduction is ₹ 1,25,000 if the person has Severe Disability (80% or more).
80DDB
Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases
Deduction limit of ₹ 40,000 (₹ 1,00,000 if Senior Citizen)
80E
Deduction towards interest payments made on loan for higher education of Self or relative
Total amount paid towards interest on loan taken
80EE
Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017
Deduction limit of ₹ 50,000 on the interest paid on loan taken
80EEA
Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
80EEB
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
80G
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc.
Donation are eligible for deduction under the below categories
Without any limit 100% deduction 50% deduction Subject to qualifying limit 100% deduction 50% deduction
Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-
80GG
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary Least of the following shall be allowed as deduction Rent paid reduced by 10% of Total Income before this deduction ₹ 5,000 per month 25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D)
Note: Form 10BA to be filled for claiming this deduction.
80GGA
Deduction towards Donations made for Scientific Research or Rural Development Donation are eligible for deduction under the below categories Research Association or University, College or other Institution for Scientific Research Social Science or Statistical Research Association or Institution for Rural Development Conservation of Natural Resources or for Afforestation PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project Funds notified by Central Government for Afforestation Rural Development National Urban Poverty Eradication Fund as setup and notified by Central Government
Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession
80GGC
Deduction towards Donations made to Political Party or Electoral Trust
Deduction towards Donations made to Political Party or Electoral Trust
80TTA
Deduction on interest received on saving bank accounts by Non-Senior Citizens Deduction limit of ₹ 10,000/-
80TTB
Deduction on interest received on deposits by Resident Senior Citizens Deduction limit of ₹ 50,000/-
80U
Deductions for a resident individual taxpayer with Disability Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred.