Income Tax Slabs : Income Tax Slabs Rate For The Year 2020-2021

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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?

 

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