01/06/2020
Income Tax Slabs 2020 & Tax Rates in India for FY 2020-21 тАУ Budget 2020 Revised IT Slabs (AY 2021-22)
The due date to file income tax returns stands extended to 30 November 2020 for the tax filing of AY 2020-21
In India, income tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab. Such tax slabs tend to undergo a change during every budget. Further, Budget 2020 has announced a new income tax regime following which individuals will have the option to pay taxes as per new tax slabs from FY 2020-21 onwards. There are three categories of individual taxpayers:
Individuals (below the age of 60 years) which includes residents as well as non-residents
Resident Senior citizens (60 years and above but below 80 years of age)
Resident Super senior citizens (above 80 years of age)
Income Tax Slabs for different financial years
Income Tax Slabs Rates for FY 2020-21
Income Tax Slabs Rates for FY 2019-20
Income Tax Slabs Rates for FY 2018-19
Income Tax Slabs for individuals below 60 years of age under new tax regime тАУ Applicable to FY 2020-21 (AY 2021-22)
Income Tax Slab Tax Rate
Up to Rs 2.5 lakh NIL
Rs 2.5 lakh to Rs 5 lakh 5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh 10%
Rs 7.5 lakh to Rs 10 lakh 15%
Rs 10 lakh to Rs 12.5 lakh 20%
Rs 12.5 lakh to Rs 15 lakh 25%
Rs 15 lakh and above 30%
The tax calculated on the basis of such rates will be subject to health and education cess of 4%.
Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.
Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing 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)
Points to remember while opting for the new tax regime:
Option to be exercised on or before the due date of filing return of income for AY 2021-22
In case of a taxpayer having business income, the option once exercised can be withdrawn only once. Further, if the taxpayer withdraws the option, he will never be able to opt-in the option again.
Individuals & HUF (Age < 60 years)
Super Senior Citizens (Age > 80 yrs)
Senior Citizens (Age: 60-80 yrs)
Domestic Companies
According to the current income tax laws in India, the income tax rate on resident individuals varies based on their age. There are different tax slabs applicable to the individuals for the financial year 2018-19 and 2019-20. For instance, a resident individual, aged below 60 years, with an income less than Rs 2.5 lacs is exempt from paying income tax. Given below are the tables for the latest income tax slabs for FY 2018-19 and FY 2019-20.
Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2019-20 тАУ Part I
Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to тВ╣2,50,000* Nil
тВ╣2,50,001 to тВ╣5,00,000 5% of total income exceeding тВ╣2,50,000
тВ╣5,00,001 to тВ╣10,00,000 тВ╣12,500 + 20% of total income exceeding тВ╣5,00,000
Above тВ╣10,00,000 тВ╣1,12,500 + 30% of total income exceeding тВ╣10,00,000
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2019-20 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)
Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2019-20 тАУ Part II
Income Tax Slabs Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 тАУ Rs 5,00,000 5%
Income from Rs 5,00,000 тАУ 10,00,000 20%
Income more than Rs 10,00,000 30%
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2019-20 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)
Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2019-20 тАУ 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 тАУ 10,00,000 20%
Income more than Rs 10,00,000 30%
Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2019-20 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)
Income Tax Slabs for Domestic Companies for FY 2019-20 тАУ Part IV
Turnover Particulars Tax Rate
Gross turnover upto 400 Cr. in the previous year 25%
Gross turnover exceeding 400 Cr. in the previous year 30%
In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax
Surcharge: Taxable income is more than 1Cr. but less than 10Cr.: 7% Taxable income is more than 10Cr. :12%
Income Tax Slabs Rates for FY 2018-19(AY 19-20)
Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2018-19 тАУ Part I
Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to тВ╣2,50,000* Nil
тВ╣2,50,001 to тВ╣5,00,000 5% of total income exceeding тВ╣2,50,000
тВ╣5,00,001 to тВ╣10,00,000 тВ╣12,500 + 20% of total income exceeding тВ╣5,00,000
Above тВ╣10,00,000 тВ╣1,12,500 + 30% of total income exceeding тВ╣10,00,000
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2018-19 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)
Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2018-19 тАУ Part II
Income Tax Slabs Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 тАУ Rs 5,00,000 5%
Income from Rs 5,00,000 тАУ 10,00,000 20%
Income more than Rs 10,00,000 30%
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2018-19 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)
Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2018-19 тАУ 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 тАУ 10,00,000 20%
Income more than Rs 10,00,000 30%
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2018-19 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)
Income Tax Slabs for Domestic Companies for FY 2018-19 тАУ Part IV
Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the previous year 25%
Gross turnover exceeding 250 Cr. in the previous year 30%
In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax
Surcharge: Taxable income is more than 1Cr. but less than 10Cr.: 7% Taxable income is more than 10Cr. :12%
Income Tax Slabs Rates for FY 2017-18(AY 2018-19)
Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2017-18 тАУ Part I
Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
Income up to Rs 2,50,000* No tax
Income from Rs 2,50,000 тАУ Rs 5,00,000 5%
Income from Rs 5,00,000 тАУ 10,00,000 20%
Income more than Rs 10,00,000 30%
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)
Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2017-18 тАУ Part II
Income Tax Slabs Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 тАУ Rs 5,00,000 5%
Income from Rs 5,00,000 тАУ 10,00,000 20%
Income more than Rs 10,00,000 30%
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2017-18 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)
Income Tax Slabs for Senior Citizens(80 Years Old Or More) for FY 2017-18 тАУ 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 тАУ 10,00,000 20%
Income more than Rs 10,00,000 30%
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Invest Now & Save Upto тВ╣ 46,800 on Taxes
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2018-19 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)
Income Tax Slabs for Domestic Companies for FY 2018-19 тАУ Part IV
Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the previous year 25%
Gross turnover exceeding 250 Cr. in the previous year 30%
In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax
Surcharge: Taxable income is more than 1Cr. but less than 10Cr.: 7% Taxable income is more than 10Cr. :12%
How to Calculate Income Tax from Income Tax Slabs?
Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income, and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues for FY 2017-18 (AY 2018-19).
Income Slabs Tax Rate Tax Calculation
*Income up to Rs 2,50,000 No tax
Income from Rs 2,50,000 тАУ Rs 5,00,000 5% (Rs 5,00,000 тАУ Rs 2,50,000) Rs 12,500
Income from Rs 5,00,000 тАУ 10,00,000 20% (Rs 8,00,000 тАУ Rs 5,00,000) Rs 60,000
Income more than Rs 10,00,000 30% nil
Tax Rs 72,500
Cess 4% of Rs 72,500 Rs 2,900
Total tax in FY 2017-18 (AY 2018-19) Rs 75,400
*Please note that Rohit is an individual assesse having an income tax exemption of Rs 2,50,000. For other assesse as mentioned in table Part II & III, the Income tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000 respectively.
Frequently Asked Questions
How does the government collect the taxes?
Taxes are collected by the Government through three means: a) voluntary payment by taxpayers into various designated Banks. For example, Advance Tax and Self Assessment Tax paid by the taxpayers, b) Taxes deducted at source [TDS] from the income of the receiver, and c)Taxes collected at source [TCS].
What is the time period considered for the purpose of income tax?
Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1st April and ending on 31st March of next calendar year. The Income-tax Law classifies the year as (i) Previous year, and (ii) Assessment year.
On the Challan, what does income tax on companies and income tax other than companies mean?
The tax that is to be paid by the companies on their income is called as corporate tax, and for payment of same in the challan it is mentioned as Income-tax on Companies (Corporation tax)-0020. Tax paid by non-corporate assessees is called as Income-tax, and for payment of the same in the challan it is to be mentioned as Income-tax (other than Companies)-0021
Is the due date for filing tax return same for all the taxpayers?
No, the due date for all the taxpayers is not the same. For individual taxpayers the due date is 31st July of the assessment year
