Income Tax Slabs & Rates for FY 2020-21 (AY 2021–22)

With the introduction of Union Budget 2020, there are substantial change in the Income Tax Slabs & Rates for FY 2020-21 (AY 2021-22). However, these new income tax slabs & rates are optional. These rates will be applicable to those taxpayers who are willing to forgo all exemptions.  Therefore, the applicable tax slabs & rates will be as below.

Income Tax Slabs & Rates for FY 2020-21 (AY 2021–22)

The income tax slabs are determined on the basis of the age of person. At present, there are 3 income tax slabs on the basis of the age. As of today, there is no separate tax slabs for men and women.

1.   Individual (Below 60 years of age)

2.   Senior Citizens (60 years and above but less than 80 years of age)

3.   Super Senior Citizens (Above 80 years of age)

New Tax Slabs & Rates

Income Tax Slab	Tax Rate
Income upto Rs. 2,50,000	Nil
Income between Rs. 2,50,001 - Rs. 5,00,000	5%
Income between Rs. 5,00,001 - Rs. 7, 50,000	10%
Income between Rs. 7,50,001 - Rs. 10,00,000	15%
Income between Rs. 10, 00,001 - Rs. 12,50,000	20%
Income between Rs. 12, 50,001 - Rs. 15,00,000	25%
Income above Rs. 10,00,000	30%

Existing Tax Slabs & Rates

Income Tax Slabs for Individual TaxPayers (Below 60 years of age)

Income Tax Slab	Income Tax Rate
Income up to Rs. 2,50,000	Nil
Income from Rs. 2,50,001 to Rs. 500,000	5%
Income from Rs. 500,001 to Rs. 10,00,000	20%
Income above Rs. 10,00,000	30%

Income Tax Slabs for SEnior Citizens (60 years and above but less than 80 years of age)

Income Tax Slab	Income Tax Rate
Income up to Rs. 3,00,000	Nil
Income from Rs. 3,00,001 to Rs. 500,000	5%
Income from Rs. 500,001 to Rs. 10,00,000	20%
Income above Rs. 10,00,000	30%

Income Tax Slabs for Super Senior Citizens (Above 80 years of age)

Income Tax Slab	Income Tax Rate
Income up to Rs. 5,00,000	Nil
Income from Rs. 500,001 to Rs. 10,00,000	20%
Income above Rs. 10,00,000	30%

Surcharges and Cess:

• 10% surcharge is applicable on income tax if the total income exceeds Rs. 50 lakhs but below 1 crore.
• 15% surcharge is applicable on income tax if the total income exceeds Rs 1 crore but below 2 cores.
•  25% surcharge is applicable on income tax if the total income exceeds Rs 2 crores but below 5 crores.
•  37% surcharge is applicable on income tax if the total income exceeds Rs 5 crores.
•  4% Health and Education Cess is applicable on the income tax and applicable surcharge.

** For individuals whose taxable income is equal to or less than Rs 5 lakh, a tax rebate of Rs. 12,500 is available under section 87A of income tax Act.

** As of today, there is no separate tax slabs for men and women.

Also read: Best tax saving options and plans | Tax saving investments

Also read: 10 Tax savingoptions other than Section 80C

Also read: How to apply forduplicate PAN card? Reprint PAN card online

Also read: National Saving Certificate (NSC) | How to buy NSC?

If you liked this post, share it with your friends and colleagues through twitter and facebook. You opinion matters, please share your comments.

Income Tax Slabs & Rates for FY 2020-21 (AY 2021-22)