COMPUTATION OF TAX LIABILITY

RATES OF TAX FOR THE ASSESSMENT YEAR 2021 –22

FOR INDIVIDUALS / HUF
Rates of Income Tax
Range of Total Income If the assessee does not exercise If the assessee exercises
option u/s 115BAC option u/s 115BAC
Upto Rs. 2,50,000 Nil Nil
Rs. 2,50,001 – Rs. 5,00,000 5% 5%
Rs. 5,00,001 – Rs. 7,50,000 20% 10%
Rs. 7,50,001 – Rs. 10,00,000 20% 15%
Rs. 10,00,001– Rs. 12,50,000 30% 20%
Rs. 12,50,001 – Rs. 15,00,000 30% 25%
Above Rs. 15,00,000 30% 30%
Special exemptions:
FOR SENIOR CITIZEN Upto Rs. 3,00,000 : Tax is Nil. Not available
FOR SUPER SENIOR CITIZEN Upto Rs. 5,00,000 : Tax is Nil.
Senior / Super Senior citizen: Resident individual who is at least 60 / 80 years of age at any time during the
Previous Year 2020-21.

Rebate u/s 87A (before charging HEC)

For a resident individual whose total income does not exceed Rs. 5 lakhs: 100% of tax upto Rs. 12,500.
Note: However, if the total income exceeds Rs. 5 lakhs, Rebate u/s 87A is Nil.

TAX RATES IN SPECIAL CASES

Short Term Capital Gain u/s 111A
15%
(Arising on transfer of equity shares or units of equity–oriented fund, which is subject to STT)
Long Term Capital Gain u/s 112 20%
Long Term Capital Gain u/s 112A in excess of Rs. 1 lakh 10%
(Arising on transfer of equity shares or units of equity–oriented fund, which is subject to STT)
Winning from lotteries, crossword puzzles, races, games, gambling, betting etc. u/s 115BB 30%

Health and Education Cess (HEC) 4% of Tax