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

Your income from salary, business or other income like income from fixed/recurring deposits and so forth are taxed according to income tax slabs. Financial plan 2020 introduced on February 1, 2020 has rolled out certain improvements in the tax slab. 

There would be two alternatives: 

• utilize existing tax slabs with all exemptions 
• utilize new disentangled tax structure however do without all exemptions 

There is NO different tax slab for men and women. Prior women used to have slight advantage over men regarding lower taxes! 

The tax slabs are resolved on period of individual. Starting today there are 3 slab rates dependent on age: 

• Under 60 years old 
• Senior Citizens (60 to under 80 years old) 
• Extremely Senior Citizens (80+ years old) 

The table beneath gives the tax slab rates: 

Income Tax Slab for HUFs and Individuals (under 60 years - for the two Men and Women) 

New Simple Tax Slab without exclusion: 

Income Slab                                                 Tax Rate 

Income up to Rs 2,50,000                              No Tax 

Income from Rs 2,50,000 - 5,00,000              5% 

Income from Rs 5,00,000 - 7,50,000             10% 

Income from Rs 7,50,000 - 10,00,000           15% 

Income from Rs 10,00,000 - 12,50,000        20% 

Income from Rs 12,50,000 - 15,00,000        25% 

Income more than Rs 15,00,000                    30% 

Tax Slab with exclusion: 

Income Slab                                              Tax Rate 

Income up to Rs 2,50,000                          No Tax 

Income from Rs 2,50,000 - 5,00,000             5% 

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

Income more than Rs 10,00,000                     30% 

Overcharge: 

• 10% additional charge on income tax if the complete income surpasses Rs 50 Lakhs however beneath Rs 1 crore 
• 15% additional charge on income tax if the complete income surpasses Rs 1 crore however beneath Rs 2 crore 
• 25% extra charge on income tax if the absolute income surpasses Rs 2 crore yet underneath Rs 5 crore 
• 37% extra charge on income tax if the absolute income surpasses Rs 5 crore 

Health and Education Cess: 4% cess on income tax including overcharge 

Rebate under Section 87A: Rs 12,500 or 100% of income tax (whichever is lower) for people with income underneath Rs 5 Lakhs 

Income tax slab for senior citizens (60 years to under 80 years of age) (the two men and women) 

New Simple Tax Slab without exception: 

Income Slab                                           Tax Rate 

Income up to Rs 3,00,000                        No Tax 

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

Income from Rs 5,00,000 - 7,50,000          10% 

Income from Rs 7,50,000 - 10,00,000        15% 

Income from Rs 10,00,000 - 12,50,000      20% 

Income from Rs 12,50,000 - 15,00,000      25% 

Income more than Rs 15,00,000                 30% 

Tax Slab with exception: 

Income Slab                                              Tax Rate 

Income up to Rs 3,00,000                          No Tax 

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

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

Income more than Rs 10,00,000                30% 

Overcharge: 

• 10% extra charge on income tax if the absolute income surpasses Rs 50 Lakhs yet underneath Rs 1 crore 
• 15% extra charge on income tax if the absolute income surpasses Rs 1 crore yet underneath Rs 2 crore 
• 25% extra charge on income tax if the absolute income surpasses Rs 2 crore yet underneath Rs 5 crore 
• 37% extra charge on income tax if the absolute income surpasses Rs 5 crore 

Health and Education Cess: 4% cess on income tax including overcharge 

Rebate under Section 87A: Rs 12,500 or 100% of income tax (whichever is lower) for people with income underneath Rs 5 Lakhs 

Income tax slab for Very senior citizens (80 years or more) (the two men and women) 

New Simple Tax Slab without exception: 

Income Slab                                             Tax Rate 

Income up to Rs 5,00,000                           No Tax 

Income from Rs 5,00,000 - 7,50,000           10% 

Income from Rs 7,50,000 - 10,00,000          15% 

Income from Rs 10,00,000 - 12,50,000        20% 

Income from Rs 12,50,000 - 15,00,000        25% 

Income more than Rs 15,00,000                    30% 

Tax Slab with exception: 

Income Slab                                          Tax Rate 

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% 

Overcharge: 

• 10% extra charge on income tax if the complete income surpasses Rs 50 Lakhs yet underneath Rs 1 crore 
• 15% extra charge on income tax if the complete income surpasses Rs 1 crore yet underneath Rs 2 crore 
• 25% extra charge on income tax if the complete income surpasses Rs 2 crore yet underneath Rs 5 crore 
• 37% extra charge on income tax if the complete income surpasses Rs 5 crore 

Health and Education Cess: 4% cess on income tax including overcharge 

Income Tax Slabs for FY 2020-21 in Budget 2020 

Income tax slab for Domestic Companies: 

Company Turnover                                        Tax Rate 

Under 400 crore (improved in July budget)        25% 

More than 400 crore                                                 30% 

Overcharge: 

• 7% overcharge if the income is more than 1 crore however under 10 crore 
• 12% additional charge if the income is in excess of 10 crore 
• Health and Education Cess: 4% cess on income tax including overcharge 

Income tax slab for Partnership Firm: 

• An organization firm (counting LLP) income is taxable at 30%. 

Overcharge: 12% additional charge on income tax if the complete income surpasses Rs 1 crore 

Health and Education Cess: 4% cess on income tax including overcharge 

Capital Gains Tax Rates

Some income identified with capital gains are taxed at uncommon rates as demonstrated as follows: 

Capital Gains                                                                          Tax Rate 

Momentary capital gains from assets             At Income Tax Slab rates recorded previously 

(Other than shares and mutual funds)

Long haul capital gains from assets                 20% (+4% Health and Education Cess) 

(Other than shares and mutual funds)

Transient capital gains on offers and               15% (+4% Health and Education Cess) 

value mutual funds

Long haul capital gains on offers and             10% (+4% Health and Education Cess) 

value mutual funds

Transient capital gains on obligation         At Income Tax Slab rates recorded previously 

mutual funds

Long haul capital gains on             At 20% (+4% Health and Education Cess) with indexation

obligation mutual funds