Income tax rates for financial year 2020-2021

INCOME TAX RATES FOR F.Y. 2020-21 (A.Y. 2021-22)

INCOME TAX RATES FOR F.Y. 2020-21 (A.Y. 2021-22) AS PER FINANCE ACT, 2020

New Tax Regime

Income Tax Slabs for Individual Tax Payers under the new tax regime for AY 2021-22 (FY 2020-21)

Income Tax SlabsTax Rate For all Individuals  
Up to ₹2,50,000NO TAX
₹2,50,000 to ₹5,00,0005% of total income exceeding ₹ 2,50,000
₹5,00,000 to ₹7,50,000₹12,500 + 10% of total income exceeding ₹ 5,00,000
 ₹7,50,000 to ₹10,00,000₹ 37500 + 15% of total income exceeding ₹ 7,50,000
₹10,00,000 to ₹12,50,000₹ 75000 + 20% of total income exceeding ₹ 10,00,000
₹12,50,000 to ₹15,00,000₹ 125000 + 25% of total income exceeding ₹ 12,50,000
Income above ₹15,00,000₹ 187500 + 30% of total income exceeding ₹ 15,00,000

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above.

Surcharge: 10% of income tax, for total income exceeding ₹ 50 lakh and upto ₹1 crore.

Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2 crore.

Surcharge: 25% of income tax, where the total income exceeds ₹2crore up to ₹5 crore.

Surcharge: 37% of income tax, where the total income exceeds ₹ 5crore

Note:

1. Above New Tax Regime are not differentiated based on age group as old Tax Regime does.

2. If any individual opts new tax regime from AY 2021-2022 (FY 2020-21) onwards- will have to give up exemptions and deductions. Some are as follows:

Leave Travel Allowance

House Rent Allowance 

Children education allowance

Other special allowances [Section 10(14)]

Standard deduction

Professional tax

Interest on housing loan under Section 24

Chapter VI-A deduction such as section 80C, 80D, 80TTA etc

Old Tax Regime

1. Income Tax Slabs for resident Individual Tax Payers for AY 2021-22 (FY 2020-21)

Income Tax SlabsTax Rate For Resident Individuals aged less than 60 years
Up to ₹2,50,000NO TAX
₹2,50,000 to ₹5,00,0005% of total income exceeding ₹ 2,50,000
₹5,00,000 to ₹10,00,000₹12,500 + 20% of total income exceeding ₹ 5,00,000
Above ₹10,00,000₹1,12,500 plus 30% of total income exceeding ₹ 10,00,000

Note: Rebate under section 87A is available to resident individual if his total income does not exceed Rs 500,000/-. Rebate available under section 87A is 100% of income tax or Rs 12500/- , whichever is less.

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above.

Surcharge: 10% of income tax, where total income is exceeding ₹ 50 lakh up to ₹1 crore.

Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2 crore.

Surcharge: 25% of income tax, where the total income exceeds ₹2crore up to ₹5 crore.

Surcharge: 37% of income tax, where the total income exceeds ₹ 5crore

Income Tax SlabsTax Rate for Senior citizens aged 60 Years and above But Less Than 80 Years
Up to ₹3,00,000No tax
₹3,00,000 – ₹5,00,0005% of total income exceeding ₹ 3 lakh
₹ 5,00,000 – ₹10,00,00010,000 plus 20% of total income exceeding ₹ 5 lakh
Income more than ₹10,00,000110,000 plus 30% of total income exceeding ₹ 10 lakh

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above

Surcharge: 10% of income tax, where total income exceeding ₹50 lakh and up to ₹1 crore.

Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2crore.

Surcharge: 25% of income tax, where the total income exceeds ₹2 crore up to ₹5 crore.

Surcharge: 37% of income tax, where the total income exceeds ₹5crore

Income Tax SlabsRates for Super Senior Citizens aged above 80 Years
Up to ₹ 5,00,000No tax
₹  5,00,000 – 10,00,00020% of income exceeding  ₹ 5 lakh
More than ₹10,00,000₹1 lakh plus 30% of income exceeding ₹10 lakh

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above

Surcharge: 10% of income tax, where total income exceeding ₹ 50 lakh and up to ₹1 crore.

Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2crore.

Surcharge: 25% of income tax, where the total income exceeds ₹2 crore up to ₹5 crore.

Surcharge: 37% of income tax, where the total income exceeds ₹5 crore

2. Income Tax Slabs for HUF/ AOP/ BOI/ Non-resident individual/Any other Artificial Juridical Person Tax Payers for AY 2021-22 (FY 2020-21)

Income Tax SlabsTax Rate
Up to ₹2,50,000NO TAX
₹2,50,000 to ₹5,00,0005% of total income exceeding ₹ 2,50,000
₹5,00,000 to ₹10,00,000₹12,500 + 20% of total income exceeding ₹ 5,00,000
Above ₹10,00,000₹1,12,500 plus 30% for total income exceeding ₹ 10,00,000

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above.

Surcharge: 10% of income tax, where total income exceeding ₹ 50 lakh and up to ₹1 crore.

Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2 crore.

Surcharge: 25% of income tax, where the total income exceeds ₹2crore up to ₹5 crore.

Surcharge: 37% of income tax, where the total income exceeds ₹ 5crore

3. Income Tax Rates for Firm for AY 2021-22 (FY 2020-21)

Tax Rate
On whole of the total income30%

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above

Surcharge: If taxable income is more than ₹ 1 Cr., then surcharge @12% on tax is also payable.

4. Income Tax Slabs for Co-operative Societies AY 2021-22 (FY 2020-21)

Income Tax SlabsTax Rate
Income up to ₹10,00010%
Income from ₹10,000 –  ₹20,000₹ 1000 plus 20% of the amount which exceeds ₹ 10,000
Income more than ₹20,000₹ 3000 plus 30% of the amount which exceeds ₹ 20,000

Additional 4% Health & education cess will be applicable on the tax and surcharge amount calculated as above

Surcharge: 12% of income tax, where the total income exceeds ₹1 crore.

5. Income Tax Rates for Local Authority for AY 2021-22 (FY 2020-21)

Tax Rate
On whole of the total income30%

Additional 4% Health & education cess will be applicable on the tax and surcharge amount calculated as above

Surcharge: 12% of income tax, where the total income exceeds ₹ 1 crore.

6. Income Tax Rates for Domestic Companies for AY 2021-22 (FY 2020-21)

TurnoverTax Rate
Gross turnover upto Rs 400 crore in the F.Y. 2020-2125%
Gross turnover exceeding Rs 400 crore in the F.Y. 2020-2130%
Where the company opted for section 115BA25%
Where the company opted for section 115BAA22%
  Where the company opted for section 115BAB    15%

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above.

Surcharge: 7% of income tax, where total income exceeds ₹ 1 crore but does not exceed Rs 10 crore.

Surcharge: 12% of income tax, where the total income exceeds ₹10 crore

7. Income Tax Rates for Foreign Companies for AY 2021-22 (FY 2020-21)

Tax Rate
On whole of the total income40%

Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above.

Surcharge: 2% of income tax, where total income exceeds ₹ 1 crore but does not exceed Rs 10 crore.

Surcharge: 5% of income tax, where the total income exceeds ₹10 crore

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