Income Tax Slabs 2020-21 - Revised Income Tax Slabs & Tax Rates in India FY 2020-21

(Check Income Tax Slab for previous years : FY 2020-21 (AY 2021-22), FY 2019-20 (AY 2020-21), FY 2018-19 (AY 2019-20) and last 10 years

Find updated latest income tax slab rates in India for Individuals, Company, NRI, HUF, BOI, AOP, LLP, Local Authority, Co-operative society. The due date for tax filing of FY 2020-21 (AY 2021-22) has been extended to 31st December 2021

What is the meaning of Income Tax Slab in India?
In India, we have a progressive method of taxation i.e. higher income higher the tax payable. To govern the same taxation in India is determined based on Income Tax slab which are defined by the tax departmentEarlier the applicability of Income Tax Slab depends on various factors such as - residential status, quantum of income, type of assessee and age.

What is the new regime of income tax?
In Budget 2020 the tax department has introduced the concept of new tax regime by way of insertion of new section 115BAC. From FY 2020-21(AY 2021-22) onwards the individual and HUF will have an option to choose between the new and old tax regime. Both regimes have separate tax slabs and rates along with separate deductions/exemptions. For the understanding of users, we have given a comparative chart of the income tax slab under the new and old regime on this page.

Latest NewsDate: 01 Feb, 2021 | Budget 2021 - No changes in the Income Tax Slab Rate (old as well as new).
- No Income Tax Return filing requirement for Senior Citizens (Aged 75 years and more) having only pension and interest income.
- No change in Surcharge and HEC rates and standard deduction
- No changes in income tax deduction u/s 24(b), 80C and other sections under chapter VI-A. Only benefit u/s 80EEA extended to one more year i.e. up to 31 March 2022.
- Section 80EEA : Timeline for Sanction the loan is extended till 31st March, 2022.

Income Tax Slab for Resident Individuals aged less than 60 Years(Both Male & Female)

Budget 2020 has given the individuals options to choose from FY 2020-21 onwards. Either to opt for the same tax rates which were applicable in last year or the new tax regime.

OPTION 1 OPTION 2
Old Income Tax Slab New Tax Regime
Upto Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%
Notes:
1. There is no change introduced in the OLD and NEW tax regime in
- Rates of Surcharge
- Health & Education Cess @4%
- Rebate u/s 87A ( no tax will be payable on total income upto Rs.5 lakh in both regimes)
2. Certain income tax exemptions and deductions like section 80C, 80D, HRA etc will not be available under the new tax regime.

Both these tax rates will apply for FY 2020-21 (AY 2021-22), the option to choose has been given to the taxpayer.

Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens (Both Male& Female)

The resident senior citizens will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1 OPTION 2
Old Income Tax Slab New Tax Regime
Upto Rs 3,00,000 NIL Upto Rs 2,50,000 NIL
Rs 3,00,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
- Rates of Surcharge
- Health & Education Cess @4%
- Rebate u/s 87A(no tax will be payable on total income upto Rs.5 lakh in both regimes)
2. Certain income tax exemptions and deductions like section 80C, 80D,80TTB, HRA etc will not be available under the new tax regime.
3. Basic exemption under the new regime is 2.5 lakhs against 3 lakhs in old regime.

Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens (Both Male and Female)

The resident super senior citizens will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1 OPTION 2
Old Income Tax Slab New Tax Regime
Upto Rs 5,00,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
- Rates of Surcharge
- Health & Education Cess @4%
- Rebate u/s 87A (no tax will be payable on total income upto Rs.5 lakh in both regimes)
2. Certain income tax exemptions and deductions like section 80C, 80D,80TTB, HRA etc will not be available under the new tax regime.
3. Basic exemption under the new regime is 2.5 lakhs against 5 lakhs in old regime.

Income Tax Slab for Non-Resident Individuals (For Male & Female both)

The non-resident will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1 OPTION 2
Old Income Tax Slab New Tax Regime
Upto Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
- Rates of Surcharge
- Health & Education Cess @4%
2. Certain income tax exemptions and deductions will not be available under the new tax regime.

Income Tax Slab for Hindu Undivided Family (HUF)

The Hindu Undivided Family (HUF) will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1 OPTION 2
Old Income Tax Slab New Tax Regime
Upto Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%
Note:
1. There is no change introduced in the OLD and NEW tax regime in
- Rates of Surcharge
- Health & Education Cess @4%
2. Certain income tax exemptions and deductions will not be available under the new tax regime.

Income Tax Slab for AOP, BOI, Artificial Juridical Person

There has been no change in the income tax slab limits for FY 2020-21 in case of AOP, BOI, Artificial Juridical Person as compared to last year(FY 2019-20).

Net Taxable Income Tax Rate Note:
- Health & Education Cess shall be applicable @4%
- Rebate u/s 87A will not be applicable
- The rate of surcharge will be
  1. Total Income upto Rs 50 lakhs - NIL
  2. Above Rs 50 Lakhs - Rs 1 crore - 10%
  3. Above Rs 1 crore - Rs 2 crore - 15%
  4. Above Rs 2 crore - Rs 5 crore - 25%
  5. Above Rs 5 crore - 37%
Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20%
Above Rs 10,00,000 30%

Income Tax Slab for Co-operative Society

The Co-operative Society will have an option to choose an income tax slab for the FY 2020-21(AY 2021-22) amongst

OPTION 1 OPTION 2
Old Income Tax Slab New Tax Regime
Upto Rs 10,000 10% Under the new income tax regime made applicable via Budget 2020 resident Co-operative Society will have an option to choose a reduced rate of tax @ 22% under section 115BAD and shall not be allowed to avail certain specified exemptions/deductions. 
Rs 10,001 - Rs 20,000 20%
Above Rs 20,000 30%
Note:
- Health & Education Cess will be available @4%
- The rate of surcharge would be 12% above Rs 1 crore

Income Tax Slab for Indian Company

Companies with Gross receipts during the PY 2018-19 is more than Rs. 400 crore

Tax would be levied @30% + 4% Cess + Surcharge at applicable rates.

Companies with Gross receipts during the PY 2018-19 is upto Rs. 400 crore

Tax would be levied @25% + 4% Cess + Surcharge at applicable rates.

Note: The domestic companies can alternatively choose to pay tax under the following reduced rates

  • Section 115BAA (domestic companies) - tax would be levied @22% + 4% Cess + 10% Surcharge
  • Section 115BA - tax would be levied @25% + 4% cess + 10% surcharge
  • Section 115BAB (manufacturing companies)- tax would be levied @15% + 4% Cess + 10% Surcharge
  • A Manufacturing generating company can now opt for Section 115BAB as proposed by the Budget 2020
  • Certain exemptions and deductions + provisions of MAT (Minimum Alternate Tax) will not be applicable in case of these reduced rates

Income Tax Slab for Foreign Company

In case of Royalty received from govt/Indian concern or technical fees as per agreement approved by the Central Government

Tax would be levied @50% + 4% Cess + Surcharge at applicable rates.

Any other Income
Tax would be levied @40% + 4% Cess + Surcharge at applicable rates.

Income Tax Slab for Individuals less than 60 years of age (For Male & Female both)

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 2,50,000 Nil Nil Nil Nil
From 2,50,001- 5,00,000 5% Nil 4%  For income upto Rs 5 lakhs Tax Rebate upto  Rs 12,500
From 5,00,001-10,00,000 12,500 + 20% Nil 4%  Nil
From 10,00,001-50,00,000 1,12,500/- + 30% Nil 4%  Nil
From 50,00,001-1,00,00,000 13,12,500 + 30% 10% 4%  Nil
Above 1,00,00,000 but upto 2,00,00,000 28,12,500 + 30% 15% 4%  Nil
Above 2,00,00,000 but upto 5,00,00,000 58,12,500 + 30% 25% 4% Nil
Above 5,00,00,000  1,48,12,500 + 30% 37% 4% Nil

Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for F.Y. 2019-20 (Both Male and Female)

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 3,00,000 Nil Nil Nil Nil
From 3,00,001- 5,00,000 5% Nil 4%  For income upto Rs 5 lakhs Tax Rebate upto Rs 12,500
From 5,00,001-10,00,000 10,000 + 20% Nil 4%  Nil
From 10,00,001-50,00,000 1,10,000/- + 30% Nil 4%  Nil
From 50,00,001-1,00,00,000 13,10,000 + 30% 10% 4%  Nil
Above 1,00,00,000 28,10,000 + 30% 15% 4%  Nil
Above 2,00,00,000 but upto 5,00,00,000 58,10,000 + 30% 25% 4% Nil
Above 5,00,00,000  1,48,10,000 + 30% 37% 4% Nil

Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For F.Y. 2019-20 (Both Male and Female)

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 5,00,000 Nil Nil Nil Nil
From 5,00,001- 10,00,000 20% Nil 4% Nil
From 10,00,001-50,00,000 1,00,000 + 30% Nil 4%  Nil
From 50,00,001-1,00,00,000 13,00,000 + 30% 10% 4%  Nil
Above 1,00,00,000 28,00,000 + 30% 15% 4%  Nil
Above 2,00,00,000 but upto 5,00,00,000 58,00,000 + 30% 25% 4% Nil
Above 5,00,00,000  1,48,00,000 + 30% 37% 4% Nil


Income Tax Slab for Non Resident Individuals (For Male & Female both)

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 2,50,000 Nil Nil Nil Nil
From 2,50,001- 5,00,000 5% Nil 4%  Nil
From 5,00,001-10,00,000 12,500 + 20% Nil 4%  Nil
From 10,00,001-50,00,000 1,12,500/- + 30% Nil 4%  Nil
From 50,00,001-1,00,00,000 13,12,500 + 30% 10% 4%  Nil
Above 1,00,00,000 28,12,500 + 30% 15% 4%  Nil
Above 2,00,00,000 but upto 5,00,00,000 58,12,500 + 30% 25% 4% Nil
Above 5,00,00,000  1,48,12,500 + 30% 37% 4% Nil

Income Tax Slab for Hindu Undivided Family ( HUF), AOP, BOI, Artificial Juridical Person

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 2,50,000 Nil Nil Nil Nil
From 2,50,001- 5,00,000 5% Nil 4%  Nil
From 5,00,001-10,00,000 12,500 + 20% Nil 4%  Nil
From 10,00,001-50,00,000 1,12,500/- + 30% Nil 4%  Nil
From 50,00,001-1,00,00,000 13,12,500 + 30% 10% 4%  Nil
Above 1,00,00,000 but upto 2,00,00,000 28,12,500 + 30% 15% 4%  Nil
Above 2,00,00,000 but upto 5,00,00,000 58,12,500 + 30% 25% 4% Nil
Above 5,00,00,000  1,48,12,500 + 30% 37% 4% Nil

Income Tax Slab for Partnership Firm/ LLP/ Local Authority

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 1 crore 30% Nil 4%l Nil
Above 1 crore 30,00,000+30% 12% 4% Nil

Income Tax Slab for Indian Company

Companies with Gross receipts more than Rs. 400 crore during the PY 2017-18

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 1 crore 30% Nil 4%l Nil
Above 1 crore but upto 10 crore 30,00,000+ 30% 7% 4% Nil
Above 10 crore 3,00,00,000+ 30% 12% 4% Nil

Companies with Gross receipts upto Rs. 400 crore during the PY 2017-18

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 1 crore 25% Nil 4%l Nil
Above 1 crore but upto 10 crore 25,00,000+ 25% 7% 4% Nil
Above 10 crore 2,50,00,000+ 25% 12% 4% Nil

Manufacturing company incorporated on or after 1st October 2019 may opt optional tax rate and required to pay @ 15% & companies which do not avail any exemption/incentive may opt for optional tax rate and they are required to pay tax @ 22%

Income Tax Slab for Foriegn Company

In case of Royalty received from govt/Indian concern or technical fees as per agreement approved by government

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 1 crore 50% Nil 4%l Nil
Above 1 crore but upto 10 crore 50,00,000+ 50% 2% 4% Nil
Above 10 crore 5,00,00,000+ 50% 5% 4% Nil

Any other Income

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 1 crore 40% Nil 4%l Nil
Above 1 crore but upto 10 crore 40,00,000+ 40% 2% 4% Nil
Above 10 crore 4,00,00,000+ 40% 5% 4% Nil

Income Tax Slab for Co-operative Society

Net Income Slab (Gross Taxable Income - deductions) Income Tax Rate Surcharge  Health & Education Cess  Rebate u/s 87A  (FY 2019-20)
Upto 10,000 10% Nil 4%l Nil
10,001 to 20,000 1,000+ 20% Nil 4% Nil
Above 20,000 but upto 1 crore 4,000+ 30% Nil 4% Nil
Above 1 crore 30% 12% 4% Nil

What are the changes in new Income tax slab rates for F.Y. 2020-21 (A.Y. 2021-22)?

1- No Tax on Taxable Annual Income up to Rs. 5 Lakh.

The limit of Rebate u/s 87A has been increased from Rs.3.5 Lakhs to Rs.5 Lakhs. Section 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. As per this provision, if an individual’s taxable income is upto Rs. 5 lakhs then he will get the benefit of Rs. 12500 or the amount of tax whichever is lower. If you are liable to pay tax upto the limit of rebate allowed, then after taking the rebate benefit, no payment will be required to be made for tax amount. For availing the full amount of rebate, the Total Taxable Income of return filer shall be up to Rs 5,00,000 for the Financial Year 2019-20, the Assessment year 2020-21.

2- Standard deduction increased from Rs 40,000 to Rs 50,000 for salaried class and pensioners.
3- No change in Income Tax slabs for individuals but a hike in surcharge

The new budget has hiked the surcharged rates to another level. It is as high as 35% for an individual earning income above 5 crore and surcharge of 27% for the income group of 2-5 crore and 15% for income group of 1-2 crore and 10% for 50lakh-1 crore income group individuals.

4- Those companies whose turnover does not exceed INR 400 crore is liable to 25% tax rate and above 400 crore turnover 30% tax.
Union Budget 2019-20 Figures
Calculate your tax liability Post Budget 2019 now! [FY 2018-19 Tax Payments vs FY 2019-20 Tax Payment] Use our Income Tax Calculator [Updated] now and see your tax saving!
Income Tax Slab

FAQs on Income Tax Slab Rate

Q- What are the new income tax slabs proposed in the new tax regime by Budget 2020?

As per the new optional tax structure, an individual or HUF can choose to pay income tax at the following rates for FY 2020-21 (AY 2021-22)

Pay Income TaxRates
Upto Rs 2.5 Lakhs Nil
Above 2.5 Lakhs to 5 Lakhs 5%
Above 5 Lakhs to 7.5 Lakhs 10%
Above 7.5 Lakhs to 10 Lakhs 15%
Above 10 Lakhs to 12.50 Lakhs 20%
Above 12.50 Lakhs to 15 Lakhs 25%
More than 15 Lakhs 30% Rate Continues

Q- What are the deductions and exemptions available under the new income tax regime?

Budget 2020 pronounced a new income tax structure which is optional for the individuals or HUF. The new reduced income tax rates can be opted for if the taxpayer is ready to forego all major deductions and exemptions available under the income tax act except
80CCD(2)
80JJAA


Q- Is rebate u/s 87A available under the new income tax structure?

Yes, in lieu of any specific exclusion we can say that rebate u/s 87A amounting to Rs 12,500 is also available under the new income tax regime introduced in Budget 2020.


Q- Can I change the income tax regime applicable every year?

The selection for optional new income tax regime CAN BE CHANGED every year by the salaried taxpayer. In case such an individual or HUF is also having income from business then this selection is not allowed to be changed every year.


Q- Is surcharge applicable under the new tax regime for Individuals or HUF under income tax?

Yes, the Surcharge will still be applicable under the new tax regime for Individuals or HUF. The surcharge rates are the same as that of the last financial year(FY 2019-20).


Q- Is health and education cess applicable under the new tax regime?

Health and education cess @4% will also apply under the new income tax regime.


Q- Which tax slab shall I choose for FY 2020-21 (AY 2021-22)?

Indian income tax structure has witnessed for the first time applicability of two slab rates simultaneously. As a result of which a lot of confusion has been created amongst the taxpayers. One of the most important criteria while making the choice of applicable tax slab will be whether you wish to claim exemptions and deductions available under the old income tax structure. But that should not form the only criteria lets get a better comparative understanding of these tax regimes.


Q- What will be the impact of the new income tax regime on my Income Tax Calculation?

A comparative analysis of income tax calculation for FY 2020-21 (AY 2021-22) under the existing tax slab and the new income tax slabs introduced in Budget 2020 can be understood by comparing taxable income under both scenarios. To know the detailed calculation please refer.


CA Abhishek Soni
CA Abhishek Soni

Abhishek Soni is a Chartered Accountant by profession & entrepreneur by passion. He is the co-founder & CEO of Tax2Win.in. Tax2win is amongst the top 25 emerging startups of Asia and authorized ERI by the Income Tax Department. In the past, he worked in EY and comes with wide industry experience from telecom, retail to manufacturing to entertainment where he has handled various national and international assignments.