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Income Tax Slab Rates for FY 2021-22 (AY 2022-23), FY 2020-21 (AY 2021-22), FY 2019-20 (AY 2020-19)

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Maharshi Shah

Budget 2021
Income Tax
Income Tax Filing

The Union Budget for the year 2020 was presented by the Finance Minister Nirmala Sitharaman on the 1st of February, 2020. The new income tax rate will be applicable from FY 2020-21 corresponding to Assessment Year 2021-22. The Union Budget will be presented on the 1st of February, 2021.

Furthermore, given the budget is just a couple of days away now, the expectations surrounding it are huge. Additionally, the FM has also launched the “Union Budget Mobile App” to access the budget documents by the Members of Parliament (MPs) and the general public.

Income Tax Slab Rates for FY 2021-22

Income tax slab rates for individuals (for resident or non-resident below the age of 60 years)

Income Range  Current Income Tax Rates New Income Tax Rates
Up to INR 2,50,000 NIL NIL
INR 2,50,001 to INR 5,00,000 5% 5%
INR 5,00,001 to INR 7,50,000 20% 10%
INR 7,50,001 to INR 10,00,000 20% 15%
INR 10,00,001 to INR 12,50,000 30% 20%
INR 12,50,001 to INR 15,00,000 30% 25%
Above INR 15,00,000 30% 30%

Income Tax slab rates for senior citizens (for individuals who are of the age of 60 years or more but less than the age of 80 years)

Income Range Current Income Tax Rates
Up to INR 3,00,000 NIL 
INR 3,00,001 to INR 5,00,000  5%
INR 5,00,001 to INR 10,00,000 20%
Above INR 10,00,000 30%

Income Range New Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%
Senior citizens of the age of 75 and above who have interest income or pension income do not have to file their ITR
Tip
Senior citizens of the age of 75 and above who have interest income or pension income do not have to file their ITR

Income tax slab rates for Super Senior citizens (for individuals of the age of 80 years and above)

Income Range  Current Income Tax Rates
Up to INR 5,00,000 NIL 
INR 5,00,001 to INR 10,00,000 20%
Above INR 10,00,000 30%

Income Range New Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated in the above 3 categories.
Surcharge: 10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.
Rebate: An individual (resident) is entitled to rebate under section 87A if his total income does not exceed INR 5,00,000. The amount of rebate shall be 100% of income-tax or INR 12,500, whichever is less. 

Income Tax slab rates for partnership firms

A partnership firm that includes LLP is taxable at 30%. 
Surcharge: A surcharge of 12% is payable if total income exceeds INR 1 Cr. 
Cess: An additional 4% surcharge will be taxable for Health and Education Cess.

ITR for Salaried Individuals
CA Assisted Income Tax Return filing for individuals having salary, one house property & income from other sources.
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ITR for Salaried Individuals
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Income Tax Rates for Companies

Particulars  Tax Rates
Existing Companies   22%
Newly Incorporated Companies (Manufacturing)  15%

The tax rate for foreign companies is 40%. 
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount.
Surcharge: A surcharge of 12% is payable if total income exceeds INR 1 Cr. 

Income Tax slab rates for AOP/BOI/Any other artificial juridical person

 

Net Income Range Income Tax Rates
Up to INR 2,50,000 NIL 
INR 2,50,000 to INR 5,00,000  5%
INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.

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Income Tax slab rates for co-operative society

Net Income Range Income Tax Rate
Up to INR 10,000 10%
INR 10,000 to INR 20,000 20%
Above INR 20,000 30%

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 12% of tax is applicable when total income exceeds INR 1 Cr.

Income Tax rates for local authority

The local authority is taxable at 30%. 
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 12% of Income Tax when total income exceeds INR 1 Cr.

Surcharge

The given tax rate slabs are applicable to any individual, HUF or artificial judicial person.

Nature of Income Up to INR 50L  More than 50L and up to 1 Cr. More than 1 Cr. and up to  2 Cr.  More than 2 Cr. and up to 5 Cr. More than 5 Cr. and up to 5 Cr.  More than 5 Cr. and up to 10 Cr. More than 10 Cr.
Short term capital gain covered under section 111A NIL 10% 15% 15% 15% 15% 15%
Long term capital gain covered under section 112A NIL 10% 15% 15% 15% 15% 15%
Any other Income  NIL 10% 15% 25% 15% 37% 37%

 

Income Tax Slab Rates FY 2020-21

Income tax slab rates for individuals (for resident or non-resident below the age of 60 years):

 

Income Range  Current Income Tax Rates New Income Tax Rates
Up to INR 2,50,000 NIL NIL
INR 2,50,001 to INR 5,00,000 5% 5%
INR 5,00,001 to INR 7,50,000 20% 10%
INR 7,50,001 to INR 10,00,000 20% 15%
INR 10,00,001 to INR 12,50,000 30% 20%
INR 12,50,001 to INR 15,00,000 30% 25%
Above INR 15,00,000 30% 30%

 

Income Tax slab rates for senior citizens (for individuals who are of the age of 60 years or more but less than the age of 80 years): 

Income Range Current Income Tax Rates
Up to INR 3,00,000 NIL 
INR 3,00,001 to INR 5,00,000  5%
INR 5,00,001 to INR 10,00,000 20%
Above INR 10,00,000 30%
Income Range New Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%

Income tax slab rates for Super Senior citizens (for individuals of the age of 80 years and above):

Income Range  Current Income Tax Rates
Up to INR 5,00,000 NIL 
INR 5,00,001 to INR 10,00,000 20%
Above INR 10,00,000 30%

 

Income Range New Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000  5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%

Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated in the above 3 categories.
Surcharge: 10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.
Rebate: An individual (resident) is entitled to rebate under section 87A if his total income does not exceed INR 5,00,000. The amount of rebate shall be 100% of income-tax or INR 12,500, whichever is less. 

Income Tax Slab Rates FY 2019-20

Total IncomeTax Rate
Up to INR 2,50,000NIL
INR 2,50,000 to 5,00,0005%
INR 5,00,000 to INR 10,00,00020%
Above INR 10,00,00030%
Slab Rates for FY 2019-20

(for resident or non-resident below the age of 60 years):

Total IncomeTax Rate
Up to INR 3,00,000NIL
INR 3,00,000 to INR 5,00,0005%
INR 5,00,000 to INR 10,00,00020%
Above INR 10,00,00030%
Slab Rates for FY 2019-20

(for individuals who are of the age of 60 years or more but less than the age of 80 years): 

Total IncomeTax Rate
Up to INR 5,00,000NIL
INR 5,00,000 to INR 10,00,00020%
Above INR 10,00,00030%
Slab Rates for FY 2019-20

(for individuals of the age of 80 years and above):

Income Tax Slab Rates FY 18-19

Tax Slab Rates for AY 2019-20: Individuals/ HUFs (Below the age of 60 years)

 

Taxable Income

Tax Rate

Upto Rs. 2,50,000

Nil

Rs. 2,50,000 to Rs. 5,00,000

5%

Rs. 5,00,000 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Surcharge Slab if taxable income

Rate

Rs. 50,00,000 to Rs. 1,00,00,000

10%

Above Rs. 1,00,00,000

15%

Health & Education Cess

4% on total of income tax+surcharge

Rebate u/s 87A for Individuals: Rs. 2,500 or 100% of tax whichever is less- if total income is less than Rs. 3,50,000

FAQs

What is Surcharge?

It is the amount that is levied upon the tax payable and not on the income that is generated. In other words, it is a tax that is levied upon the general tax.

For example: if an individual has generated an income of INR 100 over which the tax payable is INR 30, then the surcharge would be 10% of INR 30.

How to calculate rebate u/s 87A?

1. Calculate your Gross Total Income (GTI)
2. Reduce the deductions under sections 80C to 80U
3. Calculate your Tax Payable as per Income Tax slabs
4. Deduct the amount of rebate allowed

What is the difference between the Financial Year and Assessment Year?

The Financial Year is the year which begins on 1st April and ends on 31st March. It is the year in which income is earned by the taxpayer. The Assessment Year is a year immediately following the Financial Year. The taxpayer needs to file the Income Tax Return (ITR) not in the year in which he/she earns the income but after the end of that year i.e, in the assessment year.  

Got Questions? Ask Away!

  1. If I want to opt for the New regime but had told my employer that I am choosing the existing one, can I select new tax regime while filing ITR??

  2. Hey @riya_gupta

    An individual having salaried income and no business income has the option to choose between the old and new tax regimes every year i.e. he/she can switch regimes from year to year.

    However, individuals having business income are not eligible to choose between the new and old tax regime every year. Once they have opted for the new tax regime, they only have a one-time option of switching back to the old tax regime in their lifetime.

    Once they switch back, they will not be allowed to opt for new tax regime again.

  3. Hey @TanyaChopra

    If you have opted for old tax regime with your employer for TDS on salary, and plan to opt the new tax regime at the time of filing ITR, then you can do that by filling the new form i.e. 10-IE.

  4. Can full-time traders claim expenses like Broker charges STT, GST + other expenses like computer buy for trading, internet connection bill etc under new tax slabs?

  5. Apart from the tax-saving criteria, which tax slab is better for a first-time taxpayer?

  6. Hey @HarishMehta

    If you forget to fill the new form i.e. Form 10-IE, at the time of filing ITR, then you may be disallowed the tax rates available under the new tax regime. The tax department will calculate your income tax liability based on the existing/old tax regime.

  7. Hey @SonalYadav

    These budget changes will be applicable from FY 2020-21. From FY 2020-21 it will be up to the taxpayer to select the tax regime based on their Income and Investments situation.

    Following are the pros of following a new tax regime:

    1. The Income Tax Slab Rates are lower,
    2. A simplified Tax Structure i.e, Ease in filing ITR.
    3. Individuals can invest freely according to their financial goals without any compulsion to make an investment to avail deduction.

    Following are the cons of following a new tax regime:

    1. Discourages New Home buyers since no benefit will be available on Interest paid on Home Loans.
    2. Salaried individuals who live in rented properties will not be able to claim Exemption on HRA which will increase their tax burden.
    3. No tax benefit under section 80C or 80CCD(1B) upon investment in different tax savings schemes.

    Hope this helps! :slight_smile:

  8. Hey @HarshitShah

    Yes, any individual taxpayer can opt for new tax slabs, there are no restrictions based on type of income earned by a taxpayer.

    Under new tax slabs, you will be able to claim all the direct expenses related to your business activity while calculating your taxable income.

    Hope this helps!

  9. I have carry forward losses in the previous financial years, is it allowed to claim losses under the new tax regime?

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