Article Content:
- Income Tax Slabs 2020-2021
- Income Tax New Tax Regime FY 2020-21
- Tax Calculation Under The New Tax Regime
- Exemption and Deduction
- Types of Individual Taxpayers
- Income Tax Slabs for Individual Taxpayers Who Are Less Than 60 Years
- Income Tax Slabs for Senior Citizens Aged Between 60 Years to 80 Years
- Income Tax Slabs for Super Senior Citizens Who Are 80 Years of Age or Above
- Surcharge Applicable to the Individuals
- Exempted Income Categories
- Income Tax Slabs for HUF
- Income Slabs Tax for Partnership Firms
- Income Tax Slabs for Domestic Companies
- Surcharge On Tax
Income Tax Slabs 2020-2021
In the Union Budget 2020, the finance minister Nirmala Sitharaman introduced new Income Tax slabs with reduced rates with some exemptions and deductions that a taxpayer will have to give up if they file tax according to the new tax regime.
But taxpayers have the option of choosing either to go with a new regime which includes new tax slab reduce rates and forgo exemption and deduction or go with old and claim exemptions and deductions.
Income Tax Slab As Per The New Tax Regime FY 2020-21
| Income Tax Slabs | New tax rate (2020-21) |
Earlier tax rate (2019-20) |
| 0-Rs 2.5 lakh | Exempt | Exempt |
| Rs 2.5 lakh – Rs 5 lakh | 5% | 5% |
| Rs 5 lakh – Rs 7.5 lakh | 10% | 20% |
| Rs 7.5 lakh – Rs 10 lakh | 15% | 20% |
| Rs 10 lakh – Rs 12.5 lakh | 20% | 30% |
| Rs 12.5 lakh – Rs 15 lakh | 25% | 30% |
| Rs 15 lakh and above | 30% | 30% |
Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.
Individuals having a taxable income of up to Rs 5 lakh will be still able to avail Tax rebate of Rs 12,500 available under section 87A.
Tax Calculation Under The New Tax Regime
| Components | A | B | C | D |
| Annual Salary (Rs.) | 2.5 lakh | 5 lakh | 7.5 lakh | 10 lakh |
| Up to Rs.2.5 lakh | Nil | Nil | Nil | Nil |
| From Rs.2,50,001 to Rs. 5 lakh | Nil | 12,500 | 12,500 | 12,500 |
| From Rs.5,00,001 to Rs.7.5 lakh | Nil | – | 25,000 | 25,000 |
| From Rs.7,50,001 to Rs.10 lakh | Nil | – | – | 37,500 |
| From Rs.10,00,001 to Rs.12.5 lakh | Nil | – | – | – |
| From Rs.12,50,001 to Rs.15 lakh | Nil | – | – | – |
| Above Rs.15 lakh | Nil | – | – | – |
| Total Tax Amount | Nil | 12,500 | 37,500 | 75,000 |
| Additional Cess (4%) | Nil | 500 | 1,500 | 3,000 |
| Total payable tax amount | Nil | 13,000 | 39,000 | 78,000 |
Exemption and Deduction, You Can Not Avail in The New Tax Regime
- Leave Travel Allowance (LTA)
- House Rent Allowance (HRA)
- Conveyance
- Daily expenses in the course of employment
- Relocation allowance
- Helper allowance
- Children education allowance
- Other special allowances [Section 10(14)]
- Standard deduction
- Professional tax
- Interest on housing loan (Section 24)
- Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)
Deduction available under section 80TTA/80TTB - Deduction for entertainment allowance (for government employees)
- The medical insurance premium under section 80D
- Tax break on interest paid on education loan
- Tax break on donations to charitable institutions
- Tax benefits for disability under sections 80DD and 80DDB
- Deduction claimed for medical insurance premium under section 80D
According to the current taxation standard of FY 2019-20 Income Tax rates and slabs vary on the basis of their age group. Like below 60 years, above 60 years etc
Types of Individual Taxpayers
- Individual Resident as well as a non-resident who are below 60 years
- Individual above 60 years and below 80 years
- Individual above 80 years
Tax Slabs for 2019-20 for Taxpayers in India
Income Tax Slabs for Individual Taxpayers Who Are Less Than 60 Years
| Income Tax Slabs | Tax Rate for Below Age Of 60 Years |
| Up to ₹2,50,000 | Exempt |
| ₹2,50,001 to ₹5,00,000 | 5% of total income exceeding ₹2,50,000 |
| ₹2,50,001 to ₹5,00,000 | ₹12,500 + 20% of total income exceeding ₹5,00,000 |
| Above ₹10,00,000 | ₹1,12,500 + 30% of total income exceeding ₹10,00,000 |
Income Tax Slabs for Senior Citizens Aged Between 60 Years to 80 Years
| Income Tax Slabs | Tax Rate for 60 Years to 80 Years |
| Up to ₹3,00,000 | Exempt |
| ₹3,00,000 to ₹5,00,000 | 5% |
| ₹5,00,000 to ₹10,00,000 | ₹10,000 + 20% of total income exceeding ₹5,00,000 |
| Above ₹10,00,000 | ₹1,10,000 + 30% of total income exceeding ₹10,00,000 |
Income Tax Slabs for Super Senior Citizens Who Are 80 Years of Age or Above:
| Income Limit | Tax Rate for Super Senior Citizens |
| Up to ₹5,00,000 | Exempt |
| ₹5,00,000 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | ₹1,00,000 + 30% of total income exceeding ₹10,00,000 |
Surcharge Applicable to the Individuals
| Income Tax Slabs | Surcharge Rate on the amount of income tax |
| Net income exceeds Rs.50 Lakhs but doesn’t exceed Rs. 1 Crore | 10% |
| Net income exceeds Rs.1 Crore | 15% |
| Income above Rs 2 crore but below 5 crore | 25% |
| Income above Rs 5 crore | 37% |
Exempted Income Categories
Income from agriculture is exempt from tax under Section 10 of the Income Tax
Income Tax Slabs for HUF
Hindu Undivided Family comes under the same Tax Slab of the individual below 60 Years
Income Slabs Tax for Partnership Firms
Partnership Firms and LLP’s pay Taxes at the rate of 30%
12% surcharge on tax in cases the annual income is more than Rs.1 Crore
Cess: is at the rate of 4% – calculated on tax amount plus surcharge
Income Tax Slabs for Domestic Companies
| Income Tax Slabs | Surcharge Rate on the amount of income tax |
| Gross turnover up to 400 Cr. in the previous year | 25% (subject to conditions) |
| Gross turnover exceeding 400 Cr. in the previous year | 30% (subject to conditions) |
Surcharge On Tax:
7% surcharge in cases where the annual income is between Rs.1 Crore to Rs.10 Crore
12% in cases where the annual income is more than Rs.10 Crore
Cess: is at the rate of 4% – calculated on tax amount plus surcharge
Read Also : How to Calculated Income Tax With Income Tax Calculator?
