Budget 2022 maintains status quo on income tax rates: Taxpayers pay as per these slabs

Under both income tax regimes, tax rebate of up to Rs 12,500 is available to an individual taxpayer under section 87A of the Income-tax Act, 1961. This would effectively mean that individuals having net taxable income of up to Rs 5 lakh would not pay any income tax irrespective of the tax regime chose by them.

Effective from April 1, 2020, an individual salaried taxpayer has been given the option to continue with the old tax regime and avail deductions/tax exemptions such section 80C, 80D deductions, HRA, LTA tax exemptions etc. On the other hand, in the new concessional income tax regime, an individual foregoes approximately 70 income tax exemptions and deductions but gets taxed on lower rates as compared to the old regime.

Another thing to keep in mind is that under the old income tax regime, basic tax exemption limit for an individual taxpayer depends on their age and residential status. However, in the new tax regime, the basic exemption limit is Rs 2.5 lakh in a financial year.

These are the income tax slabs for resident individual below 60 years of age, non-resident individuals (NRI) irrespective of age and HUFs. An individual enjoys different income tax slabs according to his/her age under the old income tax regime. Do keep in mind that individuals having business income can opt for new tax regime. However, a taxpayers gets only one opportunity in his/her lifetime to switch back to the old tax regime.

Given in this table are the income tax slabs and rates for resident individuals above 60 years of age but below 80 years of age. I.e. senior citizens in India.

A cess at the rate of 4 per cent is added on the income tax amount. Further, surcharge is levied at different income tax rates if the total income exceeds Rs 50 lakh in a financial year. The surcharge and cess are applicable to all individual taxpayers.

The above-mentioned table captures the income tax slabs and rates for resident individual age above 80 years, in other words super senior citizens of India.