The Finance Minister Nirmala Sitharaman introduced new tax regime in Union Budget 2020, wherein there is an option for individuals and Hindu Undivided Families (HUF) to select tax slabs as per old tax slabs or new tax slabs.

Slab system means different tax rates are prescribed for different rates of income. Which means tax rates keep increasing with increase in taxpayer’s income.

These tax slabs are different for different categories of taxpayers. Income Tax Department has classified three categories of individual tax payers.

1. Individuals aged less than of 60 years (including residents and non-residents)
2. Resident Senior citizens (60 to 80 years of age)
3. Resident Super senior citizens (aged more than 80 years)
   
   

The below table explains the Income Tax Slabs and Rates for the FY 2021-22 (AY 2022-23) comparing the new tax regime and old tax regime.

Income Tax Slab Rates for the FY 2021-22 (AY 2022-23)

Frequently Asked Questions

1. Do I have to mandatorily opt for new tax regime while filing returns for FY 21-22?

• No, opting for new tax regime is optional. You will have an option to either choose new tax regime or Old Tax Regime.
• If you are an employee, then the option to choose the tax regime is at the starting of the year and it can be changed only in next year.
• In case of business persons and professionals, the option to choose is available once in an annual year.

2. Is the due date for filing an Income tax Return same for all the taxpayers?

• No, the due sate is not same for all tax payers
• For Individuals: The due date is 31^st July of the assessment year
• For Businesses: The due date is 31^st September of the assessment year

3. What is the time period considered for the calculation of income tax?

Income tax is calculated on annual basis. It is calculated for the financial year starting from 1st April and ending on 31st March.

4. Who decides the IT slab rates and can they change?

Yes, IT slab rates can be changed. If there are changes in IT slab rates for the financial year then they are introduced in the Budget for that year and presented in Parliament.

Also read: Income Tax Return (ITR) Forms for AY 2021-22 issued

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