Income Tax Slabs For FY 2020-2021 / AY 2021-2022 | Income Tax Calculation

Income Tax Slabs : In India, income tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab.

Existing tax regime:

There are three categories of individual taxpayers:

  • Individuals (below the age of 60 years), which includes residents as well as non-residents
  • Resident senior citizens (60 years and above but below the age of 80 years)
  • Resident super senior citizens (above 80 years of age)

There are different slabs for each category of taxpayers. The latest income tax slabs for AY 2019-20, AY 2020-21 and AY 2021-22 are discussed in this article. Such tax slabs tend to undergo a change during every budget.





Income Tax Rates for Taxpayers Under 60 Years 2020-2021:

New tax regime:

Budget 2020 has announced a new tax regime giving taxpayers an option to pay taxes as per the new tax slabs from FY 2020-21 onward.

Income tax slabs under the new tax regime for all individuals for FY 2020-21 (AY 2021-22)

Taxable incomeTax Rate
(Existing Scheme)
Tax Rate
(New Scheme)
Up to Rs. 2,50,000NilNil
Rs. 2,50,001 to Rs. 5,00,0005%5%
Rs. 5,00,001 to Rs. 7,50,00020%10%
Rs. 7,50,001 to Rs. 10,00,00020%15%
Rs. 10,00,001 to Rs. 12,50,00030%20%
Rs. 12,50,001 to Rs. 15,00,00030%25%
Above Rs. 15,00,00030%30%

Income tax slabs under the new tax regime for the age of 60 years or more but less than 80 years for FY 2020-21 (AY 2021-22)

Taxable incomeTax Rate
(Existing Scheme)
Tax Rate
(New Scheme)
Up to Rs. 2,50,000NilNil
Rs. 2,50,001 to Rs. 3,00,000Nil5%
Rs. 3,00,001 to Rs. 5,00,0005%5%
Rs. 5,00,001 to Rs. 7,50,00020%10%
Rs. 7,50,001 to Rs. 10,00,00020%15%
Rs. 10,00,001 to Rs. 12,50,00030%20%
Rs. 12,50,001 to Rs. 15,00,00030%25%
Above Rs. 15,00,00030%30%

Surcharge:

a) 10% of Income tax where total income exceeds Rs.50 lakh
b) 15% of Income tax where total income exceeds Rs.1 crore
c) 25% of Income tax where total income exceeds Rs.2 crore
d) 37% of Income tax where total income exceeds Rs.5 crore

Post a comment

0 Comments