Revised Income Tax Slabs & Tax Rates in India FY 2020-21

What is the meaning of Income Tax Slab in India?
Taxation in India is determined based on Income Tax slab which are defined by the tax department. Earlier the applicability of Income Tax Slab depends on various factors such as – residential status, quantum of income, type of assesse and age.

What is the new regime of income tax?
In Budget 2020 the tax department has introduced the concept of new tax regime by way of insertion of new section 115BAC. From FY 2020-21(AY 2021-22) onwards the individual and HUF will have an option to choose between the new and old tax regime. Both regimes have separate tax slabs and rates along with separate deductions/exemptions. 

ncome Tax Slab for Resident Individuals aged less than 60 Years(Both Male & Female)

Budget 2020 has given the individuals options to choose from FY 2020-21 onwards. Either to opt for the same tax rates which were applicable in last year or the new tax regime.

OPTION 1OPTION 2
Old Income Tax SlabNew Tax Regime
Upto Rs 2,50,000NILUpto Rs 2,50,000NIL
Rs 2,50,001 – Rs 5,00,0005%Rs 2,50,001 – Rs 5,00,0005%
Rs 5,00,001 – Rs 10,00,00020%Rs 5,00,001 – Rs 7,50,00010%
Rs 7,50,001 – Rs 10,00,00015%
Above Rs 10,00,00030%Rs 10,00,001 – Rs 12,50,00020%
Rs 12,50,001 – Rs 15,00,00025%
Above Rs 15,00,00030%
Notes:
1. There is no change introduced in the OLD and NEW tax regime in
– Rates of Surcharge
– Health & Education Cess @4%
– Rebate u/s 87A ( no tax will be payable on total income upto Rs.5 lakh in both regimes)
2. Certain income tax exemptions and deductions like section 80C, 80D, HRA etc will not be available under the new tax regime.

Both these tax rates will apply for FY 2020-21 (AY 2021-22), the option to choose has been given to the taxpayer.

Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens (Both Male& Female)

The resident senior citizens will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1OPTION 2
Old Income Tax SlabNew Tax Regime
Upto Rs 3,00,000NILUpto Rs 2,50,000NIL
Rs 3,00,001 – Rs 5,00,0005%Rs 2,50,001 – Rs 5,00,0005%
Rs 5,00,001 – Rs 10,00,00020%Rs 5,00,001 – Rs 7,50,00010%
Rs 7,50,001 – Rs 10,00,00015%
Above Rs 10,00,00030%Rs 10,00,001 – Rs 12,50,00020%
Rs 12,50,001 – Rs 15,00,00025%
Above Rs 15,00,00030%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
– Rates of Surcharge
– Health & Education Cess @4%
– Rebate u/s 87A(no tax will be payable on total income upto Rs.5 lakh in both regimes)
2. Certain income tax exemptions and deductions like section 80C, 80D,80TTB, HRA etc will not be available under the new tax regime.
3. Basic exemption under the new regime is 2.5 lakhs against 3 lakhs in old regime.

Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens (Both Male and Female)

The resident super senior citizens will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1OPTION 2
Old Income Tax SlabNew Tax Regime
Upto Rs 5,00,000NILUpto Rs 2,50,000NIL
Rs 2,50,001 – Rs 5,00,0005%
Rs 5,00,001 – Rs 10,00,00020%Rs 5,00,001 – Rs 7,50,00010%
Rs 7,50,001 – Rs 10,00,00015%
Above Rs 10,00,00030%Rs 10,00,001 – Rs 12,50,00020%
Rs 12,50,001 – Rs 15,00,00025%
Above Rs 15,00,00030%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
– Rates of Surcharge
– Health & Education Cess @4%
– Rebate u/s 87A (no tax will be payable on total income upto Rs.5 lakh in both regimes)
2. Certain income tax exemptions and deductions like section 80C, 80D,80TTB, HRA etc will not be available under the new tax regime.
3. Basic exemption under the new regime is 2.5 lakhs against 5 lakhs in old regime.

Income Tax Slab for Non-Resident Individuals (For Male & Female both)

The non-resident will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1OPTION 2
Old Income Tax SlabNew Tax Regime
Upto Rs 2,50,000NILUpto Rs 2,50,000NIL
Rs 2,50,001 – Rs 5,00,0005%Rs 2,50,001 – Rs 5,00,0005%
Rs 5,00,001 – Rs 10,00,00020%Rs 5,00,001 – Rs 7,50,00010%
Rs 7,50,001 – Rs 10,00,00015%
Above Rs 10,00,00030%Rs 10,00,001 – Rs 12,50,00020%
Rs 12,50,001 – Rs 15,00,00025%
Above Rs 15,00,00030%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
– Rates of Surcharge
– Health & Education Cess @4%
2. Certain income tax exemptions and deductions will not be available under the new tax regime.

Income Tax Slab for Hindu Undivided Family (HUF)

The Hindu Undivided Family (HUF) will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1OPTION 2
Old Income Tax SlabNew Tax Regime
Upto Rs 2,50,000NILUpto Rs 2,50,000NIL
Rs 2,50,001 – Rs 5,00,0005%Rs 2,50,001 – Rs 5,00,0005%
Rs 5,00,001 – Rs 10,00,00020%Rs 5,00,001 – Rs 7,50,00010%
Rs 7,50,001 – Rs 10,00,00015%
Above Rs 10,00,00030%Rs 10,00,001 – Rs 12,50,00020%
Rs 12,50,001 – Rs 15,00,00025%
Above Rs 15,00,00030%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
– Rates of Surcharge
– Health & Education Cess @4%
2. Certain income tax exemptions and deductions will not be available under the new tax regime.

Income Tax Slab for AOP, BOI, Artificial Juridical Person

There has been no change in the income tax slab limits for FY 2020-21 in case of AOP, BOI, Artificial Juridical Person as compared to last year(FY 2019-20).

Net Taxable IncomeTax RateNote:
– Health & Education Cess shall be applicable @4%
– Rebate u/s 87A will not be applicable
– The rate of surcharge will be

  1. Total Income upto Rs 50 lakhs – NIL
  2. Above Rs 50 Lakhs – Rs 1 crore – 10%
  3. Above Rs 1 crore – Rs 2 crore – 15%
  4. Above Rs 2 crore – Rs 5 crore – 25%
  5. Above Rs 5 crore – 37%
Upto Rs 2,50,000NIL
Rs 2,50,001 – Rs 5,00,0005%
Rs 5,00,001 – Rs 10,00,00020%
Above Rs 10,00,00030%

Income Tax Slab for Co-operative Society

The Co-operative Society will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1OPTION 2
Old Income Tax SlabNew Tax Regime
Upto Rs 10,00010%Under the new income tax regime made applicable via Budget 2020 resident Co-operative Society will have an option to choose a reduced rate of tax @ 22% under section 115BAD and shall not be allowed to avail certain specified exemptions/deductions. 
Rs 10,001 – Rs 20,00020%
Above Rs 20,00030%
Note:
– Health & Education Cess will be available @4%
– The rate of surcharge would be 12% above Rs 1 crore

Income Tax Slab for Indian Company

Companies with Gross receipts more than Rs. 400 crore

Tax would be levied @30% + 4% Cess + Surcharge at applicable rates.

Companies with Gross receipts upto Rs. 400 crore

Tax would be levied @25% + 4% Cess + Surcharge at applicable rates.

Note: The domestic companies can alternatively choose to pay tax under the following reduced rates

  • Section 115BAA (domestic companies) – tax would be levied @22% + 4% Cess + 10% Surcharge
  • Section 115BAB (manufacturing companies)- tax would be levied @15% + 4% Cess + 10% Surcharge
  • A Manufacturing generating company can now opt for Section 115BAB as proposed by the Budget 2020
  • Certain exemptions and deductions + provisions of MAT (Minimum Alternate Tax) will not be applicable in case of these reduced rates

Income Tax Slab for Foreign Company

In case of Royalty received from govt/Indian concern or technical fees as per agreement approved by the Central Government

Tax would be levied @50% + 4% Cess + Surcharge at applicable rates.

Any other Income
Tax would be levied @40% + 4% Cess + Surcharge at applicable rates.

Income Tax Slabs & Rates for Current FY 2019-20 (AY 2020-21)

 
 

Income Tax Slab for Individuals less than 60 years of age (For Male & Female both)

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurchargeHealth & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 2,50,000NilNilNilNil
From 2,50,001- 5,00,0005%Nil4% For income upto Rs 5 lakhs Tax Rebate upto  Rs 12,500
From 5,00,001-10,00,00012,500 + 20%Nil4% Nil
From 10,00,001-50,00,0001,12,500/- + 30%Nil4% Nil
From 50,00,001-1,00,00,00013,12,500 + 30%10%4% Nil
Above 1,00,00,000 but upto 2,00,00,00028,12,500 + 30%15%4% Nil
Above 2,00,00,000 but upto 5,00,00,00058,12,500 + 30%25%4%Nil
Above 5,00,00,000 1,48,12,500 + 30%37%4%Nil

Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for F.Y. 2019-20 (Both Male and Female)

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 3,00,000NilNilNilNil
From 3,00,001- 5,00,0005%Nil4% For income upto Rs 5 lakhs Tax Rebate upto Rs 12,500
From 5,00,001-10,00,00010,000 + 20%Nil4% Nil
From 10,00,001-50,00,0001,10,000/- + 30%Nil4% Nil
From 50,00,001-1,00,00,00013,10,000 + 30%10%4% Nil
Above 1,00,00,00028,10,000 + 30%15%4% Nil
Above 2,00,00,000 but upto 5,00,00,00058,10,000 + 30%25%4%Nil
Above 5,00,00,000 1,48,10,000 + 30%37%4%Nil

Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For F.Y. 2019-20 (Both Male and Female)

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurchargeHealth & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 5,00,000NilNilNilNil
From 5,00,001- 10,00,00020%Nil4%Nil
From 10,00,001-50,00,0001,00,000 + 30%Nil4% Nil
From 50,00,001-1,00,00,00013,00,000 + 30%10%4% Nil
Above 1,00,00,00028,00,000 + 30%15%4% Nil
Above 2,00,00,000 but upto 5,00,00,00058,00,000 + 30%25%4%Nil
Above 5,00,00,000 1,48,00,000 + 30%37%4%Nil

Income Tax Slab for Non Resident Individuals (For Male & Female both)

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 2,50,000NilNilNilNil
From 2,50,001- 5,00,0005%Nil4% Nil
From 5,00,001-10,00,00012,500 + 20%Nil4% Nil
From 10,00,001-50,00,0001,12,500/- + 30%Nil4% Nil
From 50,00,001-1,00,00,00013,12,500 + 30%10%4% Nil
Above 1,00,00,00028,12,500 + 30%15%4% Nil
Above 2,00,00,000 but upto 5,00,00,00058,12,500 + 30%25%4%Nil
Above 5,00,00,000 1,48,12,500 + 30%37%4%Nil
 

Income Tax Slab for Hindu Undivided Family ( HUF), AOP, BOI, Artificial Juridical Person

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 2,50,000NilNilNilNil
From 2,50,001- 5,00,0005%Nil4% Nil
From 5,00,001-10,00,00012,500 + 20%Nil4% Nil
From 10,00,001-50,00,0001,12,500/- + 30%Nil4% Nil
From 50,00,001-1,00,00,00013,12,500 + 30%10%4% Nil
Above 1,00,00,000 but upto 2,00,00,00028,12,500 + 30%15%4% Nil
Above 2,00,00,000 but upto 5,00,00,00058,12,500 + 30%25%4%Nil
Above 5,00,00,000 1,48,12,500 + 30%37%4%Nil

Income Tax Slab for Partnership Firm/ LLP/ Local Authority

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 1 crore30%Nil4%lNil
Above 1 crore30,00,000+30%12%4%Nil

Income Tax Slab for Indian Company

Companies with Gross receipts more than Rs. 400 crore

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 1 crore30%Nil4%lNil
Above 1 crore but upto 10 crore30,00,000+ 30%7%4%Nil
Above 10 crore3,00,00,000+ 30%12%4%Nil

Companies with Gross receipts upto Rs. 400 crore

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 1 crore25%Nil4%lNil
Above 1 crore but upto 10 crore25,00,000+ 25%7%4%Nil
Above 10 crore2,50,00,000+ 25%12%4%Nil

Manufacturing company incorporated on or after 1st October 2019 may opt optional tax rate and required to pay @ 15% & companies which do not avail any exemption/incentive may opt for optional tax rate and they are required to pay tax @ 22%

Income Tax Slab for Foreign Company

In case of Royalty received from govt/Indian concern or technical fees as per agreement approved by government

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 1 crore50%Nil4%lNil
Above 1 crore but upto 10 crore50,00,000+ 50%2%4%Nil
Above 10 crore5,00,00,000+ 50%5%4%Nil

Any other Income

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 1 crore40%Nil4%lNil
Above 1 crore but upto 10 crore40,00,000+ 40%2%4%Nil
Above 10 crore4,00,00,000+ 40%5%4%Nil

Income Tax Slab for Co-operative Society

Net Income Slab (Gross Taxable Income – deductions)Income Tax RateSurcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
Upto 10,00010%Nil4%lNil
10,001 to 20,0001,000+ 20%Nil4%Nil
Above 20,000 but upto 1 crore4,000+ 30%Nil4%Nil
Above 1 crore30%12%4%Nil

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