Income Tax Circular 2021-22: Option 1 (Old Tax Regime) or Option 2 (New Tax Regime) and IT Tax Slab Table 2021-22
Central Public Works Department
Nirman Bhawan, New Delhi
Section 115BAC of the Income Tax Act, 1961 inserted by the Finance Act 2020 has introduced a new income tax regime that comprises a significant change in the tax slabs rates. Taxpayers have been provided with an option whether they want to pay taxes according to the existing regime.
1. Old Tax Regime:
Under the Old regime, the tax shall be calculated considering all deductions and exemptions allowed under Income Tax Act, 1961, which were hitherto available . The slab rates are mentioned in table below.
2. New Tax Regime:
Under the New Tax Regime, tax shall be calculated as per the slab rates as mentioned in table below. In this regime, the tax rates are kept lower but no exemptions/ deductions are allowed.
|Tax Slab||Earlier Rate||New Rate|
|Up to 2.50 lakh||Nil||Nil|
|2.50 to 5.00 lakh||5%||5%|
|5.00 to 7.50 lakh||20%||10%|
|7.50 to 10.00 lakh||20%||15%|
|10.00 to 12.50 lakh||30%||20%|
|12.50 to 15.00 lakh||30%||25%|
|Above 15.00 lakhs||30%||30%|
All employees working in this Directorate are requested to furnish their option whether they want to compute their taxes as per Option 1 (Old Tax Regime) or Option 2 (New Tax Regime) by 12th October, 2021. If the required option is not furnished by due date, Income Tax will be calculated on the basis of Old Tax Regime.
Directorate General, CPWD
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Also Check: Central Government Pay Matrix Table 2022 PDF