For the assessment year 2021-22 i.e. for Financial year 2020-21 the tax rates for individuals, partnership firms, LLP, Indian Companies, Foreign Companies are defined in this document. The tax rates may vary from year to year and changes in tax rates take place every year through Unio Budget announced by Finance Minister in the month of February.

1. 1
Tax Rates for Assessment Year 2021-22
Author - CA Sana Baqai
There are different tax rates applicable to each category of the taxpayer. Let
us discuss tax rates applicable on each category one by one:
For Individual / HUF
Under Old Regime
In case of every individual who has not yet attained the age of 60 years
or any Hindu Undivided Family (HUF), be it resident or non-resident, tax
rates shall be as under:
Total Income Rates of Income Tax
0- Rs. 2,50,000 NIL
Rs. 2,50,000 - Rs. 5,00,000 5%
Rs. 5,00,000 - Rs. 10,00,000 20%
> Rs. 10,00,000 30%
In case of resident senior citizen (i.e., who is of the age of 60 years or
more but less than 80 years) at any time during the previous year:
Total Income Rates of Income Tax
0 - Rs.3,00,000 NIL
Rs.3,00,000 - Rs.5,00,000 5%
Rs. 5,00,000 - Rs. 10,00,000 20%
> Rs. 10,00,000 30%
In case of resident super senior citizen (i.e., who is of the age of 80 years
or more) at any time during the previous year:
Total Income Rates of Income Tax
0 - Rs.5,00,000 NIL
Rs.5,00,000 - Rs.10,00,000 20%
> Rs.10,00,000 30%

2. 2
Under New Regime
Applicable for All Individuals & HUF
Total Income New Regime Income Tax Slab
Rates for AY 2021-22
Rs 0.0 – Rs 2.5 Lakhs NIL
Rs. 3.00 lakhs – Rs 5.00 Lakhs 5% (tax rebate u/s 87A is available)
Rs. 3.00 lakhs – Rs 5.00 Lakhs
Rs. 5.00 lakhs- Rs 7.5 Lakhs 10%
Rs 7.5 lakhs – Rs 10.00 Lakhs 15%
Rs 10.00 lakhs – Rs. 12.50 Lakhs 20%
Rs. 12.5 lakhs- Rs. 15.00 Lakhs 25%
> Rs. 15 Lakhs 30%
Surcharge on Income-tax for Individuals and HUF
(a) 10% of such income tax where the total income exceeds
Rs.50,00,000 but does not exceed Rs.1 crore.
(b) 15% of such income tax, if the total income exceeds Rs. 1 crore but
does not exceeds Rs. 2 crores.
(c) 25% of such Income Tax, if the total income exceeds Rs. 2 crores but
does not exceeds Rs. 5 crores.
(d) 37% of such Income Tax, if the total income exceeds Rs. 5 crores.
For Partnership Firm / LLP
In case of a FIRM, 30% of the total income. The income tax so calculated or
in section 111A or section 112 or section 112A shall, in case of every firm, be
increased by a surcharge of 12% of such income tax, if the total income
exceeds Rs. 1 crore.
For Companies
Domestic Company
Tax Rate:
(i) Where the total turnover or the gross
receipts in Previous Year 2018-19 does
not exceed Rs. 400 crores
- 25% of the total income
(ii) Other than referred in (i) above - 30% of the total income
Surcharge – 7% (if the total income exceeds Rs. 1 crore but does not exceed
Rs. 10 crores)
– 12% (if total income exceeds Rs. 10 crores)
Foreign Company
Tax Rate – 40%of the total income.

3. 3
Surcharge – 2% (if the total income exceeds Rs. 1 crore but does not exceed
Rs. 10 crores)
– 5% (if total income exceeds Rs. 10 crores)
Health and Education Cess
In all the above cases, the income tax computed above as increased by a
surcharge, if any, and after allowing marginal relief shall be further increased
by Health and Education Cess of 4% for assessment year 2021-22.
Rebate under Section 87A
A rebate under section 87A is one of the income tax provisions that help
taxpayers reduce their income tax liability. You can claim an income tax
rebate under section 87A if your total income does not exceed Rs. 5 lakh in a
financial year. Your income tax liability becomes nil after claiming the rebate
under section 87A.