New Rules of Income Tax in India 2021-22

  1. The income tax slab rates for individuals have been revised for the financial year 2021-2022.

  2. The tax rates for individuals earning up to Rs. 2.5 lakh per annum remains unchanged at 0%.

  3. The tax rate for individuals earning between Rs. 2.5 lakh to Rs. 5 lakh per annum has been reduced to 5% from the previous rate of 10%.
  4. The tax rate for individuals earning between Rs. 5 lakh to Rs. 7.5 lakh per annum has been reduced to 10% from the previous rate of 15%.
  5. The tax rate for individuals earning between Rs. 7.5 lakh to Rs. 10 lakh per annum has been reduced to 15% from the previous rate of 20%.
  6. The tax rate for individuals earning between Rs. 10 lakh to Rs. 12.5 lakh per annum has been reduced to 20% from the previous rate of 25%.
  7. The tax rate for individuals earning between Rs. 12.5 lakh to Rs. 15 lakh per annum has been reduced to 25% from the previous rate of 30%.
  8. The tax rate for individuals earning more than Rs. 15 lakh per annum remains at 30%.
  9. The standard deduction for salaried individuals has been increased from Rs. 50,000 to Rs. 1 lakh per annum.
  10. The exemption for house rent allowance (HRA) has been increased from 40% to 50% for individuals living in metropolitan cities and from 30% to 40% for individuals living in non-metropolitan cities.
  11. The tax benefit on home loan interest payments has been increased from Rs. 2 lakh to Rs. 3 lakh per annum for individuals.
  12. The tax benefit on investments in tax-saving instruments such as Public Provident Fund (PPF) and National Pension Scheme (NPS) has been increased to Rs. 1.5 lakh per annum.
  13. The tax rate for companies has been reduced to 25% from the previous rate of 30%.
  14. The tax rate for startups has been reduced to 15% from the previous rate of 25%.
  15. The tax rate for small businesses with an annual turnover of up to Rs. 50 crore has been reduced to 20% from the previous rate of 30%.
 
 
 

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