In Budget 2021, Finance Minister proposed not any changes for financial year 2021-2022
The Income Tax slab as per new tax regime of last year will continue
Income between ₹7.5 lakh to ₹10 lakh will also attract a lower tax of 15%. For annual income between ₹10 lakh and ₹12.5 lakh, the income tax rate has been reduced to 20% from 30%.
Those earning ₹12.5 lakhs to ₹15 lakhs will pay 25 per cent tax. And those earning over ₹15 lakh would continue to pay the tax at the current rate of 30%. The new tax regime is optional and an individual taxpayer can opt for the structure that is beneficial for him.
The Tax Rebate, Cess, and Surcharge will remain unchanged. It will continue the same which was followed in the financial year 2020-21.
Income Tax Slab for financial year 2021-22
For age upto 60 yrs (Normal Citizen)
For FY 2019-20
For FY 2021-22*
Income upto 2.5 lacs
Income from 2.5 lacs to 5 lacs
Income from 5 lacs to 7.5 lacs
Income from 7.5 lacs to 10 lacs
Income from 10 lacs to 12.5 lacs
Income from 12.5 lacs to 15 lacs
Income above 15 lacs
*The new income tax rate(2021-22) will be common for 'Normal Citizen','Senior Citizen' & 'Very Senior Citizen'. For them lower limit will be 2.5 lacs.