Under the Indian Income Tax Act, a Senior Citizen gets significant tax benefits that include exemption limit benefits, which can be summarised from the Income Tax Slab applicable to the senior citizen. Here in this post, you will get Income Tax Slab For AY 2021-22 for Senior Citizens.
In budget 2020, FM Smt. Nirmala Sitharaman has announced a new tax regime giving taxpayers an option to pay taxes as per the new tax slab from FY 2020-21 (AY 2021-22) onwards. Here in this post, we will discuss both regimes of Income Tax for senior citizens.
Before knowing the Income Tax Slab for Senior Citizen it is important to know who is Senior Citizen.
Who is Senior Citizen as per Income Tax Act?
An Individual resident is considered a Senior Citizen between the age group of 60 to 80 years, as on the last day of the previous financial year.
Why Should Senior Citizen enjoy Income Tax Benefits?
As per the rich cultural heritage of the country, elders are always respected. They are taken care of in old age with special care. Likewise, the central government is working to keep the culture and moral values intact by offering special Income Tax Benefits to senior citizens.
Senior Citizen Benefit under Income Tax- Here are some significant tax benefits which senior citizens can enjoy.
- Medical Insurance Limit
- Exemption Limit (Under Income Tax Slab)
- No deduction under Reverse Mortgage Scheme
- No Tax on Interest Income (Up to Rs. 50000)
- No Advance Tax etc.
Out of the all above benefits we are here going to discuss, Income Tax Slab For AY 2021-22 For Senior Citizens.
Income Tax Slab For AY 2021-22
As per the budget 2020, under the new regime, the taxpayer has an option to choose either a new regime or stay in the old regime.
New Regime- Here taxpayers can choose to pay tax at lower rates as per the new regime on the condition that they forgo certain permissible exemptions and deductions available under Income Tax, or
Old Regime- To continue to pay taxes under the existing tax rates. The assessee can avail of rebates and exemptions by staying in the old regime and paying tax at a higher rate.
Here you find the chart of income tax slab for AY 2021-22 for senior citizens as per both new and old regimes.
Income Tax Slab For AY 2021-22 For Senior Citizens as per new regime
Here is theIncome Tax Slab For AY 2021-22 For Senior Citizens as per the new tax regime of Income Tax.
| Income Tax Slab | Income Tax Rates- New Scheme |
|---|---|
| upto Rs. 2,50,000 | NIL- No Tax |
| Rs. 2,50,001 to Rs. 5,00,000 | 5 % (Tax Rebate u/s 87a is available) |
| Rs. 5,00,001 to Rs. 7,50,000 | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 25% |
| Above Rs. 15,00,000 | 30% |
Note 1- The taxpayer opting for concessional rates in the New Tax Regime will have to forgo certain exemptions and deductions available in the existing old tax regime.
Note 2:- A tax rebate under section 87A is allowed to individual taxpayers for a maximum amount of Rs. 12,500 if the total income is up to Rs. 5,00,000 for AY 2021-22. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (New Regime)
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Income Tax Slab For AY 2021-22 For Senior Citizens as per old regime
Here is the Income Tax Slab For AY 2021-22 For Senior Citizens as per the old tax regime of Income Tax.
| Income Tax Slab | Income Tax Rates |
|---|---|
| up to Rs. 3,00,000 | NIL- No Tax |
| Rs. 3,00,000 to Rs. 5,00,000 | 5 % of total income exceeding Rs. 3,00,000 |
| Rs. 5,00,001 to Rs. 10,00,000 | Rs. 10,000 + 20% of total income exceeding Rs. 5,00,000 |
| Above Rs. 10,00,000 | Rs. 1,10,000 + 30% of total income exceeding Rs. 10,00,000 |
The following points are also applicable-
Note 1:- An additional 4% health & education cess will apply to the tax amount calculates as above. (Both Regime)
Note 2:- A tax rebate under section 87A is allowed to individual taxpayers (Age 60 or 60 + but below 80 years) for a maximum amount of Rs. 10,000 if the total income is up to Rs. 5,00,000 for AY 2021-22. (Old Regime)
Note 3:- Surcharge is additional on the amount of Income-tax. (Both Regime)
Also Read- List of Benefits from Filing Income Tax Return
Surcharge applicable to the Senior Citizen
The surcharge over the tax calculated will be charged as per the below table-
| Income Limit | Surcharge rate on the amount of Income Tax |
|---|---|
| Net income exceeds Rs. 50 Lakhs but does not exceed Rs. 1 Crore | 10% |
| Net Income exceeds Rs. 1 Crore but does not exceed Rs. 2 Crore | 15% |
| Net Income exceeds Rs. 2 Crore but does not exceed Rs. 5 Crore | 25% |
| Net Income exceeds Rs. 5 Crore | 37% |
Frequently Asked Questions- FAQs
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What is the income tax slab for AY 2021 22?
As per the new tax regime for AY 2021-22 following income tax slab is applicable for all individuals and HUF assessees-
🎯 up to Rs. 2,50,000 NIL ▶️ No Tax
🎯 Rs. 2,50,001 to Rs. 5,00,000 ▶️ 5 % (Tax Rebate u/s 87a is available)
🎯 Rs. 5,00,001 to Rs. 7,50,000 ▶️ 10%
🎯 Rs. 7,50,001 to Rs. 10,00,000 ▶️ 15%
🎯 Rs. 10,00,001 to Rs. 12,50,000 ▶️ 20%
🎯 Rs. 12,50,001 to Rs. 15,00,000 ▶️ 25%
🎯 Above Rs. 15,00,000 ▶️ 30%
Note- The taxpayer opting for concessional rates in the New Tax Regime will have to forgo certain exemptions and deductions available in the existing old tax regime.
Note 2:- A tax rebate under section 87A is allowed to individual taxpayers for a maximum amount of Rs. 12,500 if the total income is up to Rs. 5,00,000 for AY 2021-22. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (New Regime)
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What is the income tax limit for senior citizens?
Income tax slab for ay 2021-22 for senior citizens- For the current year, the income tax rate in the new tax regime is the same for all categories of individuals (including senior citizens) and HUFAs. Here is the new tax regime applicable in the case of senior citizen taxpayers-
🎯 up to Rs. 2,50,000 NIL ▶️ No Tax
🎯 Rs. 2,50,001 to Rs. 5,00,000 ▶️ 5 % (Tax Rebate u/s 87a is available)
🎯 Rs. 5,00,001 to Rs. 7,50,000 ▶️ 10%
🎯 Rs. 7,50,001 to Rs. 10,00,000 ▶️ 15%
🎯 Rs. 10,00,001 to Rs. 12,50,000 ▶️ 20%
🎯 Rs. 12,50,001 to Rs. 15,00,000 ▶️ 25%
🎯 Above Rs. 15,00,000 ▶️ 30%
Note- The taxpayer opting for concessional rates in the New Tax Regime will have to forgo certain exemptions and deductions available in the existing old tax regime.
Note 2:- A tax rebate under section 87A is allowed to individual taxpayers for a maximum amount of Rs. 12,500 if the total income is up to Rs. 5,00,000 as per Income tax slab for ay 2021-22 for senior citizens. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (New Regime)
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What is the standard deduction for AY 2021-22?
Standard deduction means a flat deduction to individuals earning a salary or pension income. It was introduced back in Budget 2018 instead of transport allowance and reimbursement of miscellaneous medical expenses. It is allowable from the “Income taxable under the head salary” The tax benefits can be claimed irrespective of the actual amount spent on ‘transport allowance’ and ‘medical allowance’.
For the assessment year 2021-22, the standard deduction applicable to salaries individual and pensioners is Rs. 50,000/-. But if you are choosing to pay tax under the new tax regime then you can not avail of the standard deduction -
How can I save tax on salary 2021 22?
Here are some of the top options every taxpayer must explore to save Income Tax on salary for 2021-22:-
Avail Maximum benefits of 80C
Never ever ignore 80CCD
Triple benefit of home loan (80C + 80EEA + 80C)
Section 80D- Medical Insurance Premium
Section 80E- Interest Paid on Education Loan
80EE- Interest for the first time homeowner
80G- Donation to Various Govt. approved charities, social and govt. organization.
80GG- House rent paid, where individual not getting HRA and not owning any property.
Join our Social Community
Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken based on the above article.
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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)