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

Updated: 3 June 2026

For FY 2021-22 (AY 2022-23), taxpayers could choose between the old regime (0%, 5%, 20%, 30% slabs with deductions) and the new optional regime (6 slabs from 5% to 30% without deductions). Section 87A rebate of ₹12,500 applied for income up to ₹5 lakh in the old regime only.

AY 2022-23

Assessment Year for FY 2021-22 income. ITR filing deadline was 31 July 2022 (extended). Updated return (ITR-U) deadline was 31 March 2025 — now closed.

Old Regime Slabs — FY 2021-22

Income Slab	Below 60 Yrs	Senior Citizen (60–80)	Super Senior (80+)
Up to ₹2,50,000	Nil	Nil	Nil
₹2,50,001 – ₹3,00,000	5%	Nil	Nil
₹3,00,001 – ₹5,00,000	5%	5%	Nil
₹5,00,001 – ₹10,00,000	20%	20%	20%
Above ₹10,00,000	30%	30%	30%

Section 87A rebate: ₹12,500 for total income up to ₹5 lakh (old regime only). Standard deduction: ₹50,000 for salaried and pensioners (old regime only). 4% H&E Cess on all tax amounts.

New Optional Regime Slabs — FY 2021-22

Income Slab	Tax Rate	Notes
₹0 – ₹2,50,000	Nil	Same basic exemption
₹2,50,001 – ₹5,00,000	5%	No 87A rebate in new regime
₹5,00,001 – ₹7,50,000	10%	Lower than old regime's 20%
₹7,50,001 – ₹10,00,000	15%	Lower than old regime's 20%
₹10,00,001 – ₹12,50,000	20%	Lower than old regime's 30%
₹12,50,001 – ₹15,00,000	25%	Lower than old regime's 30%
Above ₹15,00,000	30%	Same peak rate

New regime FY 2021-22: No standard deduction, no 87A rebate, no 80C/80D/HRA/LTA/home loan deductions. All deductions and most exemptions were unavailable.

New Regime Milestones — Comparison Across Years

Feature	FY 2021-22	FY 2022-23	FY 2023-24	FY 2025-26
Default Regime	Old	Old	New (default)	New (default)
Standard Deduction	Not available	Not available	₹50,000	₹75,000
87A Rebate	Not available	Not available	₹25,000 (up to ₹7L)	₹60,000 (up to ₹12L)
Peak Slab Rate	30% (above ₹15L)	30% (above ₹15L)	30% (above ₹15L)	30% (above ₹24L)
Max Surcharge	37% (both regimes)	37% (both regimes)	25% cap (new)	25% cap (new)
Zero-Tax Threshold	₹5L (old only)	₹5L (old only)	₹7L (new)	₹12L (new)

Key Budget 2021 Changes Affecting Taxpayers

1. Senior Citizen ITR Exemption: Individuals aged 75+ whose only income is pension and FD interest from the same specified bank are exempt from filing ITR — the bank computes and deducts the correct tax on their behalf (Section 194P).

2. EPF Interest Taxed Above ₹2.5L: From FY 2021-22, interest accruing on EPF contributions exceeding ₹2.5 lakh per year in a financial year became taxable. For government employees, the threshold is ₹5 lakh per year. This mainly affected high-income earners making voluntary PF contributions.

3. Section 80EEA Extended: Additional ₹1.5 lakh deduction on home loan interest for affordable housing (stamp duty value ≤ ₹45L) extended — loans sanctioned up to 31 March 2022 are eligible. Loans after that date cannot claim 80EEA.

4. Pre-Filled ITR Forms: ITR-1 and ITR-2 forms were enhanced with pre-filled data from TDS certificates, Form 26AS, and dividend information — reducing manual entry errors.

Frequently Asked Questions

What were the income tax slabs for FY 2021-22 (AY 2022-23)?

For FY 2021-22, the old regime slabs for individuals below 60 years were: ₹0–2.5L at 0%, ₹2.5L–5L at 5%, ₹5L–10L at 20%, above ₹10L at 30%. Senior citizens (60–80 years) had a basic exemption of ₹3 lakh (nil up to ₹3L), and super senior citizens (80+) had exemption up to ₹5 lakh. The new optional regime had 6 slabs: ₹0–2.5L (0%), ₹2.5–5L (5%), ₹5–7.5L (10%), ₹7.5–10L (15%), ₹10–12.5L (20%), ₹12.5–15L (25%), above ₹15L (30%). Both regimes had 4% H&E cess on tax + surcharge.

What Budget 2021 changes affected individual income tax?

The Union Budget 2021 did not change income tax slab rates. Key changes were: (1) Pre-filled ITR forms extended to include salary, TDS, dividend, capital gains data to simplify filing; (2) Senior citizens aged 75 or above exempted from filing ITR if their only income is pension from the same bank where FD interest is earned — the bank deducts tax on their behalf; (3) LTC Cash Voucher Scheme: Leave Travel Concession exemption allowed in cash for FY 2020-21, extended procedures; (4) Deduction for affordable housing loans under Section 80EEA extended to loans sanctioned up to 31 March 2022; (5) Interest on EPF contributions above ₹2.5 lakh per year made taxable from FY 2021-22.

Was standard deduction available in the new tax regime for FY 2021-22?

No. The standard deduction of ₹50,000 (for salaried individuals and pensioners) was NOT available under the new tax regime for FY 2021-22. The new regime was introduced in Budget 2020 without most deductions and exemptions. Standard deduction was added to the new regime only from FY 2023-24 (Budget 2023). So for FY 2021-22, choosing the new regime meant forgoing the ₹50,000 standard deduction, HRA exemption, Section 80C/80D deductions, and home loan interest deduction — though slab rates were lower.

What was the tax on ₹7.5 lakh income under the new regime in FY 2021-22?

Under the new regime for FY 2021-22, income of ₹7.5 lakh was taxed as follows: ₹0–2.5L = ₹0; ₹2.5–5L at 5% = ₹12,500; ₹5–7.5L at 10% = ₹25,000. Total tax = ₹37,500 before cess. Add 4% H&E Cess = ₹1,500. Total tax payable = ₹39,000. Under the old regime (without any deductions), the same income of ₹7.5L would attract: ₹0–2.5L = ₹0; ₹2.5–5L at 5% = ₹12,500; ₹5–7.5L at 20% = ₹50,000. Total tax = ₹62,500 + 4% cess = ₹65,000. The new regime saved ₹26,000 at this income level with no deductions. With 80C of ₹1.5L, old regime tax at ₹7.5L becomes ₹52,000 — still more than new regime.

Can I still file an updated return (ITR-U) for FY 2021-22?

Section 139(8A) allows filing an updated ITR (ITR-U) within 2 years from the end of the relevant assessment year. For FY 2021-22 (AY 2022-23), the deadline to file ITR-U was 31 March 2025 — which has already passed as of 2026. You can no longer file an updated return for FY 2021-22. If you missed filing or made errors in the FY 2021-22 return, your only recourse is to respond to any notices from the Income Tax Department or await their assessment. Ensure you have documentation ready for any scrutiny.

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