Income Tax Slabs 2020 and Tax Rates in India for FY 2020-21 (AY 2021-22)

Income Tax Slabs

In India, income tax is levied on singular taxpayers based on a piece system where different tax rates have been recommended for different slabs and such tax rates continue expanding with an expansion in the income chunk.

Existing tax regime

There are three classifications of individual taxpayers:

• People (beneath the age of 60 years), which incorporates residents just as non-residents 
• Occupant senior citizens (60 years or more however underneath the age of 80 years) 
• Occupant too senior citizens (over 80 years old)

There are different slabs for every class of taxpayers. The most recent income tax slabs for AY 2019-20, AY 2020-21 and AY 2021-22 are examined in this article. Such tax slabs will in general go through a change during each budget.

New tax regime

Budget 2020 has declared another tax regime giving taxpayers an alternative to pay taxes according to the new tax slabs from FY 2020-21 onwards.

Income tax slabs under the new tax regime for all people for FY 2020-21 (AY 2021-22)

Income Tax Slab                   Tax Rate

Up to Rs 2.5 lakh                            -   NIL

From Rs 2.5 lakh to Rs 5 lakh     -   5% (Tax rebate of Rs 12,500 accessible under section 87A)

From Rs 5 lakh to Rs 7.5 lakh     -   10%

From Rs 7.5 lakh to Rs 10 lakh   -  15%

From Rs 10 lakh to Rs 12.5 lakh -  20%

From Rs 12.5 lakh to Rs 15 lakh -  25%

From Rs 15 lakh and above      -     30%

The tax determined based on such rates will be subject to health and education cess of 4%.

Any person prefer to be taxed under the new tax regime from FY 2020-21 onwards should surrender certain exemptions and deductions.

Here is the rundown of exemptions and deductions that a taxpayer should surrender while picking the new tax regime.

• Leave Travel Allowance (LTA)
• House Rent Allowance (HRA)
• Conveyance
• Every day costs in the course of employment
• Relocation allowance
• Helper allowance
• Kids education allowance
• Other extraordinary allowances [Section 10(14)]
• Standard deduction
• Professional tax
• Interest on housing loan (Section 24)
• Part VI-A deduction (80C,80D, 80E, etc) (Except Section 80CCD(2) and 80JJA)

Focuses to recollect while choosing the new tax regime:

• Alternative to be practiced at the very latest the due date of recording return of income for AY 2021-22
• On the off chance that a taxpayer has a business income and practiced the alternative, he/she can withdraw from the choice just a single time. A business taxpayer withdrawing from the discretionary tax regime needs to follow the ordinary income tax slabs.

As per the current income tax laws in India, the income tax rate on inhabitant people shifts dependent on their age. There are different tax slabs appropriate to the people for the financial year 2018-19 and 2019-20. For example, an occupant singular, aged under 60 years, with an income not as much as Rs 2.5 lacs is excluded from paying income tax.

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Given underneath are the tables for the most recent income tax slabs for FY 2019-20.

Income Tax Slabs and Rates for Individual Tax Payers and HUF (Less Than 60 Years Old) for FY 2019-20 - Part I

Income Tax Slab - Tax Rate for Individual and HUF Below the Age Of 60 Years

Up to ₹2,50,000*  -  Nil

₹2,50,001 to ₹5,00,000  -  5% of all out income surpassing ₹2,50,000

₹5,00,001 to ₹10,00,000  -  ₹12,500 + 20% of absolute income surpassing ₹5,00,000

Above ₹10,00,000  -  ₹1,12,500 + 30% of complete income surpassing ₹10,00,000

• No tax for people with income not exactly ₹ 2,50,000
• 0 to 5% tax with income From ₹ 2.5 lacs to 5 lacs for different age groups
• 20% tax with income From ₹ 5 lacs to 10 lacs
• 30% tax with income above ₹ 10 lacs
• A tax rebate under section 87A is permitted to singular taxpayers a most extreme amount of:

– Rs 2,500 for complete income up to Rs 3.5 lakh for FY 2018-19

– Rs 12,500 for all out income up to Rs 5 lakh for FY 2019-20

• Investments upto ₹ 1.5 lacs under Sec 80C can spare ₹ 46,800 in taxes.

Note : An extra 4% Health and education cess will be material on the tax amount determined as above.

Income Tax Slabs for Senior Citizens (60 Years Old Or More however Less than 80 Years Old) for FY 2019-20 – Part II

Income Tax Slabs  -  Tax Rate for Senior citizens with age of 60 Years to 80 Years

Income up to Rs 3,00,000*  -  No tax

Income from Rs 3,00,000 – Rs 5,00,000   -  5%

Income from Rs 5,00,000 – 10,00,000  -  20%

Income more than Rs 10,00,000  -  30%

Note : An extra 4% Health and education cess will be appropriate on the tax amount determined as above.

Income Tax Slabs for Super Senior Citizens (80 Years Or More) for FY 2019-20 - Part III

Income Tax Slabs  -  Tax Rate for Super Senior Citizens (Aged 80 Years And Above)

Income up to Rs 5,00,000*  -  No tax

Income from Rs 5,00,000 – 10,00,000  -  20%

Income more than Rs 10,00,000  -  30%

Note : An extra 4% Health and education cess will be relevant on the tax amount determined as above.

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Surcharge relevant to the people shrouded in Part I, II and III

Income limit  -  Surcharge Rate on the amount of income tax

Total compensation surpasses Rs 50 lakh yet doesn't surpass Rs 1 crore  -  10%

Net gain above Rs 1 crore yet doesn't surpass Rs 2 crore  -  15%

Net gain surpasses Rs 2 crore however doesn't surpass Rs 5 crore  -  25%

Net gain surpasses Rs 5 crore  -  37%

Income Tax Slabs for Domestic Companies for FY 2019-20

Turnover Particulars  -  Tax Rate

Gross turnover upto 400 Cr. in the FY 2017-18   -   25%

Gross turnover surpassing 400 Cr. in the FY 2017-18   -   30%

Where the company settled on Section 115BA   -   25%

Where the company settled on Section 115BAA   -   22%

Where the company picked Section 115BAB   -   15%

Furthermore cess and surcharge is levied as follows:

• Cess: 4% of corporate tax
• Surcharge appropriate:

Income  -  Surcharge Rate on the amount of income tax

Net gain surpasses Rs.1 Crore however doesn't surpass Rs.10 Crore  -  7%

Net gain surpasses Rs.10 Crore  -  12%

However, the rate of surcharge if there should arise the case of a company choosing taxability under Section 115BAA or Section 115BAB will be 10% regardless of amount of absolute income.