Income Tax Rates for Assessment Year 202122 
Total Income 
Rate of Tax 
Upto ₹5,00,000 
Nil 
₹5,00,001 to ₹10,00,000 
20% 
Above ₹10,00,000 
30% 
Total Income 
Rate of Tax 
Upto ₹2,50,000 
Nil 
₹2,50,001 to ₹5,00,000 
5% 
₹5,00,001 to ₹7,50,000 
10% 
₹7,50,001 to ₹10,00,000 
15% 
₹10,00,001 to ₹12,50,000 
20% 
₹12,50,001 to ₹15,00,000 
25% 
Above ₹15,00,000 
30% 
Upto ₹3,00,000 
Nil 
₹3,00,001 to ₹5,00,000 
5% 
₹5,00,001 to ₹10,00,000 
20% 
Above ₹10,00,000 
30% 
Total Income 
Rate of Tax 
Upto ₹2,50,000 
Nil 
₹2,50,001 to ₹5,00,000 
5% 
₹5,00,001 to ₹7,50,000 
10% 
₹7,50,001 to ₹10,00,000 
15% 
₹10,00,001 to ₹12,50,000 
20% 
₹12,50,001 to ₹15,00,000 
25% 
Above ₹15,00,000 
30% 
Upto ₹2,50,000 
Nil 
₹2,50,001 to ₹5,00,000 
5% 
₹5,00,001 to ₹10,00,000 
20% 
Above ₹10,00,000 
30% 
The amount of incometax shall be increased by a surcharge for the purposes of the Union calculated at the following rates—
(a) where the total income exceeds ₹50,00,000 but does not exceed ₹1 crore 
10% of such incometax 
(b) where the total income exceeds ₹1 crore but does not exceed ₹2 crore 
15% of such incometax 
(c) where the total income exceeds ₹2 crore but does not exceed ₹5 crore 
25% of such incometax 
(d) where the total income exceed ₹5 crore 
37% of such incometax 
Marginal relief has also been provided in all cases where surcharge is to be levied.
In the case of persons mentioned in (A) above, where such income exceeds,—
(a) ₹50,00,000 but does not exceed ₹1 crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of ₹50,00,000 by more than the amount of income that exceeds ₹50,00,000;
(b) ₹1 crore but does not exceed ₹2 crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of ₹1 crore by more than the amount of income that exceeds ₹1 crore;
(c) ₹2 crore but does not exceed ₹5 crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of ₹2 crore by more than the amount of income that exceeds ₹2 crore;
(d) ₹5 crore, the total amount payable on such income and surcharge thereon shall not exceed the total amount payable on a total income of ₹5 crore by more than the amount of income that exceeds ₹5 crore.
'Health and Education Cess (H&EC) on Income Tax' @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied.
Rebate of maximum ₹12,500 for resident individuals having total income up to ₹5,00,000 [Section 87A]
With a view to provide tax relief to the individual tax payers who are in lower income bracket, the Act for assessment year 202021 has provided rebate from the tax payable by an assessee, if the following condition and satisfied:
(i) The assessee is an individual
(ii) He is resident in India,
(iii) His total income does not exceed ₹5,00,000.
(1) the amount of incometax payable on the total income for any assessment year or
(2) ₹12,500,
whichever is less. 
Rate of Tax : 30%
Rate of Tax : 22%
III. If the company is a new manufacturing company and it opts to be taxed u/s 115BAB(2) provided it satisfies the conditions of section 115BAB(2)
Rate of Tax : 15%
Old Regime as (I) above :
Where the total income of a domestic company exceeds ₹1 crore but does not ₹10 crore, a surcharge of 7% of tax shall be levied.
Where the total income of the domestic company exceeds ₹10 crore, a surcharge at the rate of 12% of tax shall be levied.
New Regime as (II) & (III) above :
10% (irrespective of the fact whether the total income is less than or more than ₹1 crore)
However, the total amount payable as incometax and surcharge on total income exceeding ₹1 crore but not exceeding ₹10 crore, shall not exceed the total amount payable as incometax on a total income of ₹1 crore, by more than the amount of income that exceeds ₹1 crore. Further, the total amount payable as incometax and surcharge on total income exceeding ₹10 crore, shall not exceed the total amount payable as incometax and surcharge on a total income of ₹10 crore, by more than the amount of income that exceeds ₹10 crore.
'Health and Education Cess (H&EC) on Income Tax' @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied. 
Rate of Tax : 40%
Where the total income of a company other than a domestic company exceeds ₹1 crore but does not ₹10 crore, a surcharge of 2% of tax shall be levied.
Where the total income of such company exceeds ₹10 crore, a surcharge at the rate of 5% of tax shall be levied.
However, the total amount payable as incometax and surcharge on total income exceeding ₹1 crore but not exceeding ₹10 crore, shall not exceed the total amount payable as incometax on a total income of ₹1 crore, by more than the amount of income that exceeds ₹1 crore.
Further, the total amount payable as incometax and surcharge on total income exceeding ₹10 crore, shall not exceed the total amount payable as incometax and surcharge on a total income of ₹10 crore, by more than the amount of income that exceeds ₹10 crore.
'Health and Education Cess (H&EC) on Income Tax' @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied. 
Rate of Tax : 30%
The amount of incometax shall be increased by a surcharge at the rate of 12% of such incometax in case of a firm having a total income exceeding ₹1 crore.
The total amount payable as incometax and surcharge on total income exceeding ₹1 crore shall not exceed the total amount payable as incometax on a total income of ₹1 crore by more than the amount of income that exceeds ₹1 crore.
'Health and Education Cess (H&EC) on Income Tax' @ 4% on income tax (inclusive of surcharge, wherever applicable) shall be levied. 
There is no threshold limit for taxability of income in case of a cooperative society.
The slab rate for AY 202021 is as under:
Net Income Range 
Rate of income Tax 
Up to Rs. 10,000 
10% 
Rs. 10,001  Rs. 20,000 
Rs. 1,000 Plus 20% of the Amount by which the total income exceeds Rs. 10,000 
Above Rs. 20,000 
Rs. 3,000 Plus 30% of the Amount by which the total income exceeds Rs. 20,000 
Surcharge In case of a ‘Cooperative Societies’ –
Surcharge is 12% of incometax if net income exceeds Rs.1 Crore.
It is subject to marginal relief (in the case of a cooperative society having a net income of exceeding Rs.1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as incometax on total income of Rs. 1 Crore by more than the amount of income that exceeds Rs. 1 crore).
4% of Income Tax Plus Surcharge
Marginal Relief In case of a ‘Cooperative Societies’:
The total amount payable as incometax and surcharge on total income exceeding ₹1 crore shall not exceed the total amount payable as incometax on a total income of ₹1 crore by more than the amount of income that exceeds ₹1 Crore. 
Local Authorities are Taxable at the Rate of 30%.
Surcharge In case of a ‘Local Authorities’ –
Surcharge is 12% of incometax if net income exceeds Rs. 1 crore.
It is subject to marginal relief ( in the case of a local authority having a net income of exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as incometax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore).
Health and Education Cess In case of a ‘Local Authorities’
It is 4% of incometax and surcharge. 


