Income Tax Slab Rates for AY 20-21

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Income Tax Slab rates for AY 20-21

Income Tax Slab Rates for AY 20-21 and FY 19-20 –

This article contains the summary of the income tax slab rates for AY 20-21/FY 19-20. These will help you to plan your Income & Investments and help you to manage your tax liability for AY 2020-21. Further, since the budget 2018 has not announced any changes in income tax slabs this time, it remains the same as that of last year. However, individual taxpayers having taxable annual income up to Rs 5 lakhs will get full tax rebate

  • For salaried persons, Standard Deduction is being raised from the current Rs.40,000 to Rs.50,000.
  • TDS threshold on interest earned on bank/post office deposits raised from Rs.10,000 to Rs.40,000.
  • TDS threshold for deduction of tax on rent increased from Rs.1,80,000 to Rs.2,40,000.
  • Section 54 benefit increased from one residential house to two residential house for a taxpayer having capital gains up to Rs. 2 Crore.
  • Exemption from Income Tax on notional rent on second self occupied house property.

Income Tax Slab Rates for AY 20-21

Income Tax Slabs

The income tax slab rates are usually revised every year during the Budget. However, there have been no changes made to the Income Tax slabs in the Budget of 2019. Thus the Slab rates remain the same as the rates for AY 19-20. These are the income tax slab rates for AY 20-21(FY 19-20) –

There are three categories of individual taxpayers:
1.Individuals (below the age of 60 years) which includes residents as well as non-residents
2.Resident Senior citizens (60 years and above but below 80 years of age)
3.Resident Super senior citizens (above 80 years of age)

Income Tax slab for individual tax payers & HUF (Less than 60 years old)

Income SlabTax Rate
Income up to RS 2,50,000No Tax
Income up to RS 2,50,000 to 5,00,0005%
Income up to RS 5,00,000 to 10,00,00020%
Income more than 10,00,00030%

Income Tax Slab for Senior Citizens (More than 60 years old and Less than 80 years old)

Income SlabTax Rate
Income up to RS 3,00,000No Tax
Income up to RS 3,00,000 to 5,00,0005%
Income up to RS 5,00,000 to 10,00,00020%
Income more than RS 10,00,00030%

Income Tax Slab for Senior Citizens (80 years old and more)

Income SlabTax Rate
Income up to RS 5,00,000No Tax
Income up to RS 5,00,000 to 10,00,00020%
Income more than 10,00.00030%

Income Tax Slab Rates for Business

The following are the Income Tax Slab Rates shall be applicable for the assessment year 2017-18. Health and Education Cess @ 4% shall be levied on the Income Tax so computed.

Income Tax Slab Rates for Co-operative Society

Income SlabTax Rate
Total Income does not exceed RS 10,00010%
Total Income exceed RS10,000 but does not exceed RS 20,00020%
Total Income exceed RS 20,00030%

Income Tax Slab Rates for Firms and local Authority

Income Tax Slab Rates won’t apply in this case and Tax 30%flat shall be computed on the Total Income.

Surcharge is also levied in case of Firms and Local Authorities as per the below mentioned scheduled.

Level of IncomeSurcharge
Less than RS 1croreNo Surcharge
More than RS 1crore12%

Surcharge @12% would also be levied on Tax in case the Total income exceeds RS 1crore during the Financial Year.

Income Tax Slab Rates for Domestic Companies

Income Tax on Domestics companies is levied @30% of the Total Income. However, Union Budget 2018 had reduced the Income Tax from 30% to 25% for domestic companies with a Turnover of less than Rs 250Crores. These reduced income tax rates are applicable from Financial Year 2018-19 onwards.

For Domestic companies with turnover of more than Rs 250 Crores, Income Tax would continue to be levied @30%.

Surcharge is also levied in case of Domestic Companies as per the below mentioned scheduled.

Level of Income

Surcharge
Less than RS 1CroreNo Surcharge
More than RS 1Crore but less than RS 10Crore7%
More than RS 10Crore12%

Health and Education Cess

Health and Education Cess @ 4% would also be levied on Total Tax Computed. This Cess is also applicable for all categories of Taxpayers.

Tax rate for Partnership Firm

A Partnership Firm is taxable at 30%.

Surcharge: 12% of Tax where total income exceeds Rs 1Crore.

Health and Education Cess @ 4%of Tax plus surcharge.

Tax Rates for Foreign companies:

A Foreign company is taxable at 40%.

Surcharge: 2% of tax where total income exceeds Rs 1crore,5% where total income exceeds Rs 10 crore.

Health and Education Cess @ 4% of tax plus surcharge.

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