Income Tax Slab 2021-22

No changes have been made in Income Tax slab rate for the Financial Year 2021-22. Income tax rate slab for the FY 2020-21 AY 2021-22 remains unchanged for this financial year 2021-22. As it was before, in this year there are two tax regime. You have to opt one between Old Tax Regime and New Tax Regime.

However, in this context you must know if you can ever switch your option. Once, you opt for the new tax regime, there is no option for you to return to the old tax regime system unless your income is from salary. Hence, the salaried get the benefit to choose between old and new in every year.

Old Tax Regime Vs New Tax Regime

The New Tax Regime comes in force from the Assessment Year 2021-22. Unlike Old Tax Regime, you cannot enjoy the most of the deductions and exemptions in New Tax Regime. There are lots of more differences between the two.

• You can any time switch to new tax system.
• Except salaried persons, one cannot switch back to old tax.
• Tax rates are lower and gradually increase with the increase of income in new regime. Like 5%, 10%, 15%, and so on.
• In old regime tax rates are comparatively high like 5%, 20% and 30%.
• No regular or contemporary deductions and exemptions are allowed in New Tax Regime.
• You can enjoy all the deductions and exemptions such as 80C, 80D, Standard Deduction, etc. in Old Tax Regime.

Income Tax Slab Rate for FY 2021-22 (AY 2022-23)

IT Slab for 2021-22 New Tax Regime