Income tax slab rates FY 2020-21 Last Updated : 03 Jul 2020

With the introduction of Union Budget 2020, there has been a substantial change and modification in the tax slabs applicable to the salaried class. If you are a salaried professional, you will be required to check the latest Income Tax slabs.

Given below are the various tables for the latest Income Tax Slabs for the FY 2020-2021:

New Income Tax Slab for Individual (New Regime)

Income Tax Slab Tax Rate
Up to Rs.2.5 lakh Nil
From Rs.2,50,001 to Rs.5,00,000 5% of the total income that is more than Rs.2.5 lakh + 4% cess
From Rs.5,00,001 to Rs.7,50,000 10% of the total income that is more than Rs.5 lakh + 4% cess
From Rs.7,50,001 to Rs.10,00,000 15% of the total income that is more than Rs.7.5 lakh + 4% cess
From Rs.10,00,001 to Rs.12,50,000 20% of the total income that is more than Rs.10 lakh + 4% cess
From Rs.12,50,001 to Rs.15,00,000 25% of the total income that is more than Rs.12.5 lakh + 4% cess
Income above Rs.15,00,001 30% of the total income that is more than Rs.15 lakh + 4% cess

Note: New income tax rates are optional

For more information Check out How to Calculate Taxable Income on Salary

Here are the latest income tax slab rates as per the Union Budget 2020 for different categories of taxpayers and legal entities:

Income tax slab for individual taxpayers (Resident Individuals and Non-Resident Indians) and HUF (less than 60 years old)

Income tax slab Tax rate
Up to Rs.2.5 lakh Nil
Between Rs.2.5 lakh to Rs.5 lakh 5%
Between Rs.5 lakh to Rs.10 lakh 20%
Over Rs.10 lakh 30%
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore 10% of income tax
Above Rs.1 crore 15% of income tax

Health and education cess: 4% on tax computed inclusive of the surcharge

Learn more about Income Tax, Income Tax Return, Income Tax Refund

Income tax slab for individual taxpayers between 60 and 80 years of age

Income tax slab Tax rate
Up to Rs.3 lakh Nil
Between Rs.3 lakh to Rs.5 lakh 5%
Between Rs.5 lakh to Rs.10 lakh 20%
Above Rs.10 lakh 30%
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore 10% of income tax
Above Rs.1 crore 15% of income tax

Health and education cess: 4% on tax computed inclusive of the surcharge

Income tax slab for individual taxpayers above 80 years of age

Income tax slab Tax rate
Up to Rs.5 lakh Nil
Between Rs.5 lakh to Rs.10 lakh 20%
Above Rs.10 lakh 30%
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore 10% of income tax
Above Rs.1 crore 15% of income tax

Health and education cess: 4% on tax computed inclusive of the surcharge

Learn more about Income Tax Calculator, efiling Income Tax

Income tax slab for Association of Persons (AOP)

Income tax slab Tax rate
Up to Rs.2.5 lakh Nil
Between Rs.2.5 lakh to Rs.5 lakh 5%
Between Rs.5 lakh to Rs.10 lakh 20%
Above Rs.10 lakh 30%
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore 10% of income tax
Above Rs.1 crore 15% of income tax

Education cess: 2% extra on income tax + applicable surcharge

Secondary and higher education cess: 1% extra on income tax + applicable surcharge

Income tax slab for Bodies of Individuals (BOI)

Income tax slab Tax rate
Up to Rs.2.5 lakh Nil
Between Rs.2.5 lakh to Rs.5 lakh 5%
Between Rs.5 lakh to Rs.10 lakh 20%
Above Rs.10 lakh 30%
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore 10% of income tax
Above Rs.1 crore 15% of income tax

Education cess: 2% extra on income tax + applicable surcharge

Secondary and higher education cess: 1% extra on income tax + applicable surcharge

Income tax slab for Other Artificial Judicial Persons

Income tax slab Tax rate
Up to Rs.2.5 lakh Nil
Between Rs.2.5 lakh to Rs.5 lakh 5%
Between Rs.5 lakh to Rs.10 lakh 20%
Above Rs.10 lakh 30%
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore 10% of income tax
Above Rs.1 crore 15% of income tax

Education cess: 2% extra on income tax + applicable surcharge

Secondary and higher education cess: 1% extra on income tax + applicable surcharge

For Partnership Firms and Limited Liability Partnerships (LLPs)

Applicable tax is at 30% flat rate.

Plus:

  • Surcharge: 12% over the income tax amount for income exceeding Rs.1 crore
  • Health and education cess: 4% on the tax computed inclusive of surcharge

For local authorities

Applicable tax is at 30% flat rate.

Plus:

  • Surcharge: 12% over the income tax amount for income exceeding Rs.1 crore
  • Health and education cess: 4% on the tax computed inclusive of surcharge

For domestic companies

Applicable tax is at 30% flat rate.

In the previous year, if the gross receipt has not exceeded Rs.250 crore, tax rate will be 25%.

  • Surcharge: 7% of the income tax amount for income between Rs.1 crore and Rs.10 crore

12% if the income exceeds Rs.10 crore.

  • Health and education cess: 4% of the tax computed inclusive of surcharge

For foreign companies

Nature of income Tax rate
Income received as royalty that is compensated by the Government of India as per agreement entered into with an Indian company (after March 31, 1961 and before April 1, 1976) 50%
Income as fees for technical services as per agreement entered into with an Indian company (after February 29, 1964 and before April 1, 1976) 50%
Any additional income earned 40%

Plus:

  • Surcharge:2% of the income tax amount for income between Rs.1 crore and Rs.10 crore.

5% of the income tax amount for income greater than Rs.10 crore.

  • Health and education cess: 4% of the tax computed inclusive of surcharge

For cooperative societies (urban, semi-urban, and rural excluding Agricultural Societies and Self Help Groups)

Income range Tax rate
Up to Rs.10,000 10%
Between Rs.10,000 to Rs.20,000 20%
Above Rs.20,000 30%

Plus:

  • Surcharge: 12% of the income tax amount for income greater than Rs.1 crore
  • Health and education cess: 4% of the tax computed inclusive of surcharge

Income Tax Slabs FAQs

  1. What is the difference between senior citizens and super senior citizens?
  2. Senior citizens are individuals who are above 60 years of age but under 80 years of age, while super senior citizens are those who are above 80 years of age.

  3. How much surcharge is applicable on my income tax?
  4. The amount of surcharge you will have to pay on your income tax will depend upon your income. Those who earn under Rs.50 lakh will have to pay no surcharge, while those who earn between Rs.50 lakh and Rs.1 crore will be charged 10% on their tax, and those who earn in excess of Rs.1 crore will have to pay 15% extra on their tax.

  5. What cess is charged on income tax?
  6. Secondary and Higher Education Cess is applicable to FY 2017-18, and Health and Education Cess is applicable to FY 2018-19.

  7. Do I have to pay cess on my income tax?
  8. Yes, for FY 2017-18, the cess applicable is 3% on the overall income tax plus surcharge.

  9. What is the difference between the minimum exemption limit for senior citizen and that for super senior citizen?
  10. The minimum exemption limit for individuals under 60 years of age is Rs.2.5 lakh, while the limit for both senior citizens as well as super senior citizens is Rs.5 lakh.

News About Income Tax Slabs and Rates

  • Budget 2020: FM announces big income tax relief

    Finance Minister Nirmala Sitharaman in her budget speech proposed a taxpayers’ charter in the Income Tax Act to ensure fairness in assessment. During her speech, the finance minister announced tax relief for individuals as she introduced new income tax slabs for FY 2020-21. As per the new tax slabs, which are optional, those earning up to Rs.5 lakh will not need to pay any tax. Individuals who fall earn between Rs.5 lakh and Rs.7.5 lakh will be required to be 10% tax. Those who fall in the bracket between Rs.7.5 lakh to Rs.10 lakh, Rs.10 lakh to Rs.12.5 lakh, Rs.12.5 lakh to Rs.15 lakh and those earning above Rs.15 lakh will be required to pay tax of 15, 20, 25 and 30 percent, respectively. Budget 2020 has offered taxpayers the option to choose between the existing income tax regime and a new regime. The new rates don’t come with tax exemptions. So, taxpayers can either choose to embrace the new slabs and rates or stick to the older regime that comes with exemptions.

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