Previous And New Taxation Regime: Tax Slabs And Charges For AY 2021-22


Taxes

oi-Roshni Agarwal

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The brand new monetary yr has already begun and for the previous monetary yr, the due date to file ITR for salaried class is July 31, except in any other case prolonged resulting from coronavirus. Now as you’ll be starting to compile all of the required paperwork to hasten your return submitting course of. Right here we’re once more stressing on the 2 earnings tax regime choices out there to each taxpayer together with the tax slab charges.

Old And New Taxation Regime: Tax Slabs And Rates For AY 2021-22

Previous And New Taxation Regime: Tax Slabs And Charges For AY 2021-22

Previous taxation regime: Listed here are the tax slab charges for people lower than 60 years outdated:

Revenue vary Evaluation yr 2021-22
As much as Rs. 250000
Rs. 250000 to Rs. 5 lakh 5%
Rs. 5 lakh to Rs. 10 lakh 20%
Above Rs. 10 lakh 30%

For senior residents

Revenue vary Evaluation yr 2021-22
As much as Rs. 3,00,000
Rs. 300000 to Rs. 5 lakh 5%
Rs. 5 lakh to Rs. 10 lakh 20%
Above Rs. 10 lakh 30%

For tremendous senior residents

Revenue vary Evaluation yr 2021-22
As much as Rs. 5,00,000
Rs. 5 lakh to Rs. 10 lakh 20%
Above Rs. 10 lakh 30%

Now there’s a surcharge implication in case the earnings of an assessee falls above the desired restrict and the charges are as following:

For the evaluation yr 2021-22, surcharge charges are as following:

Revenue vary Surcharge charge for AY 2021-22

Revenue vary Surcharge charge for AY 2021-22
Rs. 50 lakhs – Rs. 1 crore 10%
Rs. 1 crore to Rs. 2 crore 15%
Rs. 2 crore to Rs. 5 crore 25%
Rs. 5 crore to Rs. 10 crore 37%
Exceeding Rs. 10 crore 37%

Additionally, within the outdated tax regime with the above tax slabs there shall be allowed all deductions together with Part 80C, part 80D and many others. of the Revenue tax Act 1961

New tax regime:

Revenue tax slab Price
As much as Rs. 2.5 lakh Nil
Rs. 2.5 lakh to Rs. 5 lakh 5%
Rs. 5 lakh to Rs. 7.5 lakh 10%
Rs. 7.5 lakh to Rs. 10 lakh 15%
Rs. 10 lakh to Rs. 12.50 lakh 20%
Rs. 12.5 lakh to Rs. 15 lakh 25%
Above 15 Lakh 30%

Now on the decrease taxation charge within the new tax regime, one must forego the various deductions and exemptions out there reminiscent of EPF, PPF, meals coupon and many others. Notably right here the deduction i.e. out there solely is deduction underneath 80CCD (2) of the Revenue-tax Act, i.e., deduction on the employer’s contribution to the Tier-I NPS account is obtainable.

And right here the utmost deduction that’s allowed to be claimed is 10% of primary wage plus DA in a monetary yr.

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Story first revealed: Saturday, April 24, 2021, 13:20 [IST]



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