Income tax slabs under the new tax regime for all individuals for 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.

    1. Leave Travel Allowance (LTA)

    2. House Rent Allowance (HRA)

    3. Conveyance

    4. Daily expenses in the course of employment

    5. Relocation allowance

    6. Helper allowance

    7. Children education allowance

    8. Other special allowances [Section 10(14)]

    9. Standard deduction

    10. Professional tax

    11. Interest on housing loan (Section 24)

    12. 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:

    1. Option to be exercised on or before the due date of filing return of income for AY 2021-22

    2. In case a taxpayer has a business income and exercised the option, he/she can withdraw from the option only once. A business taxpayer withdrawing from the optional tax regime has to follow the regular income tax slabs.

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 – Part I

Income Tax Slab Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ₹ 2,50,000* Nil
₹ 2,50,001 to ₹ 5,00,000 5% of total income exceeding ₹ 2,50,000
₹ 5,00,001 to ₹ 10,00,000 ₹ 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
  • No tax for individuals with income less than ₹ 2,50,000

  • 0%-5% tax with income ₹ 2.5 lacs to 5 lacs for different age groups

  • 20% tax with income ₹ 5 lacs to 10 lacs

  • 30% tax with income above ₹ 10 lacs

  • A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:

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

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

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

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (6,50,000)
Less: Standard deduction ( 50,000) 6,00,000
Interest on fixed deposit 50,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (@ 5% from Rs 2.5 to 5 lakh) 12,500
Less: Rebate u/s 87A 12,500
NIL

Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2019-20 – 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 – 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 additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (4,00,000)
Less: Standard deduction ( 50,000) 3,50,000
Income from house property 2,50,000
Interest on fixed deposit 50,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (@ 5% from Rs 3 to 5 lakh) 10,000
Less: Rebate u/s 87A 10,000
NIL

Income Tax Slabs for Super Senior Citizens(80 Years Old 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 additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for a rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (3,50,000)
Less: Standard deduction ( 50,000) 3,00,000
Income from house property 2,50,000
Interest on fixed deposit 1,00,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (nil below Rs 5 lakh) NIL
Less: Rebate u/s 87A NIL
NIL

Surcharge applicable to the individuals covered in Part I, II and III:

Income limit Surcharge Rate on the amount of income tax
Net income exceeds Rs 50 lakh but doesn’t exceed Rs 1 crore 10%
Net income above Rs 1 crore but doesn’t exceed Rs 2 crore 15%
Net income exceeds Rs 2 crore but doesn’t exceed Rs 5 crore 25%
Net income exceeds Rs 5 crore 37%

Income Tax Slabs for Domestic Companies for FY 2019-20 – Part IV

Turnover Particulars Tax Rate
Gross turnover upto 400 Cr. in the FY 2017-18 25%
Gross turnover exceeding 400 Cr. in the FY 2017-18 30%
Where the company opted for Section 115BA 25%
GWhere the company opted for Section 115BAA 22%
Where the company opted for Section 115BAB 15%

In addition cess and surcharge is levied as follows:

Cess: 4% of corporate tax

Surcharge applicable:

Income Limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
Net income exceeds Rs.10 Crore 12%

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Tax slabs and tax rates for AY 2019-20 (FY 2018-19):

Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2018-19 – Part I

Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ₹ 2,50,000* Nil
₹ 2,50,001 to ₹ 5,00,000 5% of total income exceeding ₹ 2,50,000
₹ 5,00,001 to ₹ 10,00,000 ₹ 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

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2018-19 – Part II

Income Tax Slabs Tax Rate for 60 Years Old Or More but Less than 80 Years Old
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 additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2018-19 – 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 additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Surcharge applicable to the individuals covered in Part I, II and III:

Income limit 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 Tax Slabs for Domestic Companies for FY 2018-19 – Part IV

Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the FY 2016-17 25%
Gross turnover exceeding 250 Cr. in the FY 2016-17 30%

In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax

Surcharge applicable:

Income Limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
Net income exceeds Rs.10 Crore 12%

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Due Date Reminder

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July Aug Sep Oct Nov Dec
All
30 Oct 20 furnishing of challan-cum-statement in respect of tax deducted u/s 194-IA in month of September 2020
30 Oct 20 Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IB in month of September 2020
31 Oct 20 Filing of GSTR-1 for the quarter Jul-Sep, 2020
31 Oct 20 Quarterly statement of TDS deposited for the quarter ending September 30, 2020
07 Nov 20 Payment of TDS of October 2020 (For Govt deductors paying through challan)
10 Nov 20 Return of TDS (Tax deducted at source) with payment of tax (GSTR-7) for the month of October 2020
10 Nov 20 Statement by e-commerce operator with tax (GSTR-8) for the month October 2020
11 Nov 20 Filing of GSTR-1 for the month of Oct, 2020
13 Nov 20 Filing of GSTR-6 for input service distributor for the month of Oct 2020
14 Nov 20 Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of September, 2020.
14 Nov 20 Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of September, 2020
15 Nov 20 P.F Payment for the month of October 2020
15 Nov 20 ESIC Payments for the month of October 2020
15 Nov 20 furnishing of Form 24G by an office of Government where TDS for m/o Oct 20 has been paid without production of a challan
15 Nov 20 Quarterly TDS certificate (in respect of tax deducted for payments other than salary) for the quarter ending September 30, 2020
20 Nov 20 Filing of GSTR-5 for Non-resident foreign taxpayer for the month of Oct 2020
20 Nov 20 GST Return for NRI OIDAR service provider for the month of Oct 2020 (GSTR 5A)
30 Nov 20 furnishing of challan-cum-statement in respect of tax deducted u/s 194-IA in month of October 20
30 Nov 20 Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IB in month of October 2020
07 Dec 20 Payment of TDS of November 2020 (For Govt deductors paying through challan)
10 Dec 20 Statement by e-commerce operator with tax (GSTR-8) for the month November 2020
10 Dec 20 Return of TDS (Tax deducted at source) with payment of tax (GSTR-7) for the month of November 2020
11 Dec 20 Filing of GSTR-1 for the month of Nov, 2020
13 Dec 20 Filing of GSTR-6 for input service distributor for the month of November 2020
15 Dec 20 Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of October, 2020.
15 Dec 20 Due date for issue of TDS Certificate for tax deducted under Section 194-IB in the month of October, 2020
15 Dec 20 P.F Payment for the month of November 2020
15 Dec 20 ESIC Payments for the month of November 2020
15 Dec 20 furnishing of Form 24G by an office of Government where TDS for m/o Nov 20 has been paid without production of a challan
20 Dec 20 Filing of GSTR-5 for Non-resident foreign taxpayer for the month of Nov 2020
20 Dec 20 GST Return for NRI OIDAR service provider for the month of November 2020 (GSTR 5A)
30 Dec 20 furnishing of challan-cum-statement in respect of tax deducted u/s 194-IA in month of November 2020
30 Dec 20 Due date for furnishing of challan-cum-statement in respect of tax deducted u/s 194-IB in month of November 20
07 Jan 21 Payment of TDS of December 2020 (For Govt deductors paying through challan)
10 Jan 21 Return of TDS (Tax deducted at source) with payment of tax (GSTR-7) for the month of December 2020
10 Jan 21 Statement by e-commerce operator with tax (GSTR-8) for the month December 2020
11 Jan 21 Filing of GSTR-1 for the month of Dec, 2020
13 Jan 21 Filing of GSTR-6 for input service distributor for the month of December 2020
14 Jan 21 Due date for issue of TDS Certificate for tax deducted under Section 194-IA in the month of November, 2020.
15 Jan 21 P.F Payment for the month of December 2020
15 Jan 21 ESIC Payments for the month of december 2020
15 Jan 21 furnishing of Form 24G by an office of Government where TDS for m/o Dec 20 has been paid without production of a challan
15 Jan 21 Submission of Forms No. 15G, 15H, 27C for the quarter ending 31st December 2020
18 Jan 21 Filing of CMP-08 for the quarter Oct-Dec 2020
20 Jan 21 Filing of GSTR-5 for Non-resident foreign taxpayer for the month of Dec 2020
20 Jan 21 GST Return for NRI OIDAR service provider for the month of Dec 2020 (GSTR 5A)
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