Source- Internet

Source- Internet

03/26/2020
Income Tax Slabs 2020 and Tax Rates in India for FY 2020-21 , Budget 2020
Tax Mokesh Tax Mokesh
Income tax is levied on the basis of income, category of a person, age  or any other factors, which are given by the Act.
In so far, Individual is concerned, It is imposed on the basis of his age. Interestingly, Budget 2020 has given choice to every individual to choose either new regime or old regime, as per  of his volition.

An Individual can be divided into 3 categories:
  • Individuals (below the age of 60 years) which includes residents as well as non-residents
  • Resident Senior citizens (60 years or above 60 but below 80 years of age)
  • Resident Super senior citizens ( 80 years of above 80 of age)
Free Consultation with Tax Professional : Whatsapp No: +91 8146799146.
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Income Tax Slabs for individuals below 60 years of age under new tax regime applicable to AY 2021-22

Income Tax Slab

Tax Rate

Up to Rs 2.5 lakh
Nil
Above 2.5 Lakh  but up to 5 Lakh5% (Tax rebate of Rs 12,500 available under section 87A)
Above 5 Lakh but up to 7.5 Lakh
10%
Above 7.5 Lakh but up to 10 Lakh
15%
Above 10 Lakh but up to 12.5 Lakh
20%
Above 12.5 Lakh but up to 15 Lakh
25%
Above 15 Lakh 
30%

Note: 

  1. Tax rate is subject to health and education cess.
  2. In the new tax regime, an individual has to give up certain exemptions.
  3. An individual has to Opt on or before the due date of filing return of income for AY 2021-22. 
  4. An individual can opt anyone of the both schemes every year; except a businessman, who will get only one chance to withdraw the scheme which he will opt in the financial year 2020-21.
Some prominent exemptions which an individual has to give up, by virtue of adoption of new regime, are given below:
  • Leave Travel Allowance (LTA)
  • House Rent Allowance (HRA)
  • Conveyance
  • Daily expenses in the course of employment
  • Relocation allowance
  • Helper allowance
  • Children education allowance
  • Other special allowances [Section 10(14)]
  • Standard deduction
  • Professional tax
  • Interest on housing loan (Section 24)

Apparently, It would be prudent decision if a person opt new tax regime, but, in actuality, it is not good for everyone. Kindly consult your tax professional before taking any decision.

Free Consultation with Tax Professional : Whatsapp No: +91 8146799146.
Or visit Website TaxMokh.com





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