Income Tax Slab Calculator AY 2021-22 (Excel-Compatible)
Calculate your income tax liability for Assessment Year 2021-22 with our precise calculator. Get Excel-ready results with breakdowns for both old and new tax regimes.
Comprehensive Guide to Income Tax Slabs for AY 2021-22 (Excel Calculator)
The Assessment Year (AY) 2021-22 corresponds to the Financial Year (FY) 2020-21, which brought significant changes to India’s income tax structure. This guide provides a detailed breakdown of the tax slabs, exemptions, and calculation methods, along with instructions for creating your own Excel-based tax calculator.
Understanding Assessment Year vs Financial Year
- Financial Year (FY): April 1, 2020 to March 31, 2021
- Assessment Year (AY): April 1, 2021 to March 31, 2022 (when you file taxes for FY 2020-21)
Key Changes in AY 2021-22
- Introduction of the new tax regime with lower rates but no exemptions
- Option to continue with the old regime with exemptions and deductions
- Increased standard deduction for pensioners (₹50,000)
- New slab rates for both regimes
| Particulars | Old Regime | New Regime |
|---|---|---|
| Basic Exemption Limit | ₹2.5 lakh (₹3 lakh for seniors, ₹5 lakh for super seniors) | ₹2.5 lakh for all |
| Standard Deduction | ₹50,000 | ₹50,000 |
| Section 80C Deduction | Up to ₹1.5 lakh | Not available |
| HRA Exemption | Available | Not available |
| Rebate u/s 87A | Up to ₹12,500 (income ≤ ₹5 lakh) | Up to ₹12,500 (income ≤ ₹5 lakh) |
Income Tax Slabs for AY 2021-22
Old Tax Regime (With Deductions)
| Income Range | Below 60 Years | 60-80 Years | Above 80 Years |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | ||
| ₹2,50,001 to ₹5,00,000 | 5% | Nil | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | Nil |
| Above ₹10,00,000 | 30% | ||
Note: For the old regime, a cess of 4% (Health & Education Cess) is applicable on the total tax plus surcharge (if any).
New Tax Regime (Lower Rates, No Deductions)
| Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹7,50,000 | 10% |
| ₹7,50,001 to ₹10,00,000 | 15% |
| ₹10,00,001 to ₹12,50,000 | 20% |
| ₹12,50,001 to ₹15,00,000 | 25% |
| Above ₹15,00,000 | 30% |
The new regime offers lower rates but removes most deductions and exemptions (except standard deduction and some specific allowances).
How to Choose Between Old and New Regime
Use our calculator above to compare both regimes. Generally:
- Choose Old Regime if: You have significant deductions (₹1.5 lakh+ in 80C, HRA, etc.)
- Choose New Regime if: Your gross income is below ₹15 lakh and you have minimal deductions
Creating an Excel Calculator for AY 2021-22
To build your own Excel calculator:
Step 1: Set Up the Input Sheet
- Create cells for:
- Gross Annual Income
- Age Group (dropdown)
- Tax Regime (dropdown)
- Total Deductions (for old regime)
- Use Data Validation for dropdowns:
- Age Group: “Below 60”, “60-80”, “Above 80”
- Regime: “Old”, “New”
Step 2: Create Calculation Formulas
For Old Regime:
=IFS(
AND(B2<=250000, B3="Below 60"), 0,
AND(B2<=300000, B3="60-80"), 0,
AND(B2<=500000, B3="Above 80"), 0,
AND(B2<=500000, B3="Below 60"), (B2-250000)*0.05,
AND(B2<=500000, B3="60-80"), (B2-300000)*0.05,
AND(B2<=1000000), (B2-500000)*0.2 + 12500,
TRUE, (B2-1000000)*0.3 + 112500
)
For New Regime:
=IFS(
B2<=250000, 0,
B2<=500000, (B2-250000)*0.05,
B2<=750000, (B2-500000)*0.1 + 12500,
B2<=1000000, (B2-750000)*0.15 + 37500,
B2<=1250000, (B2-1000000)*0.2 + 75000,
B2<=1500000, (B2-1250000)*0.25 + 125000,
TRUE, (B2-1500000)*0.3 + 187500
)
Where B2 = Taxable Income, B3 = Age Group
Step 3: Add Rebate and Cess Calculations
Rebate: =IF(B2<=500000, MIN(B4,12500), 0)
Cess: =B4*0.04
Total Tax: =B4-B5+B6
Where B4 = Tax Before Rebate, B5 = Rebate, B6 = Cess
Common Deductions Under Old Regime
| Section | Deduction | Maximum Limit |
|---|---|---|
| 80C | Investments (PPF, ELSS, NSC, etc.), Tuition Fees, Life Insurance Premium | ₹1,50,000 |
| 80D | Health Insurance Premium | ₹25,000 (₹50,000 for seniors) |
| 80G | Donations to approved funds | 50%-100% of donation |
| HRA | House Rent Allowance | Actual HRA received (subject to conditions) |
| 24(b) | Home Loan Interest | ₹2,00,000 (self-occupied) |
Frequently Asked Questions
Q1: Can I switch between regimes every year?
A: For salaried individuals, the choice is made at the start of the financial year and remains for that year. Business owners can choose annually.
Q2: Is the standard deduction available in both regimes?
A: Yes, ₹50,000 standard deduction is available in both old and new regimes for AY 2021-22.
Q3: How is the rebate under Section 87A calculated?
A: The rebate is 100% of income tax or ₹12,500 (whichever is lower) if total income ≤ ₹5,00,000.
Q4: Are there any surcharges for high-income earners?
A: Yes, surcharges apply:
- 10% for income between ₹50 lakh to ₹1 crore
- 15% for income between ₹1 crore to ₹2 crore
- 25% for income between ₹2 crore to ₹5 crore
- 37% for income above ₹5 crore
Q5: Can I claim both HRA and home loan benefits?
A: Yes, you can claim both if you’re living in a rented house while paying EMI for another property (subject to conditions).
Tax Planning Strategies for AY 2021-22
- Maximize 80C Investments: Invest in PPF, ELSS, or NSC to reduce taxable income by up to ₹1.5 lakh
- Health Insurance: Purchase policies for family (including parents) to claim under 80D
- NPS Contributions: Additional ₹50,000 deduction under 80CCD(1B)
- Home Loan: If eligible, claim both principal (80C) and interest (24b) benefits
- Compare Regimes: Use our calculator to determine which regime is better for your income level