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Income Tax Slabs for FY2020-21
The Finance Minister introduced new tax regime in Union Budget, 2020 wherein there is an option for individuals and HUF (Hindu Undivided Family) to pay taxes at lower rates without claiming deductions under various sections. The following Income Tax slab rates are notified in new tax regime vs old tax regime:Income Tax Slab Tax rates as per new regime Tax rates as per old regime
|Income Tax Slab||Tax rates as per new regime||Tax rates as per old regime|
|₹0 - ₹2,50,000||Nil||Nil|
|₹2,50,001 - ₹ 5,00,000||5%||5%|
|₹5,00,001 - ₹ 7,50,000||₹12,500 + 10% of total income exceeding ₹5,00,000||₹12,500 + 20% of total income exceeding ₹5,00,000|
|₹7,50,001 - ₹ 10,00,000||₹37,500 + 15% of total income exceeding ₹7,50,000||₹62,500 + 20% of total income exceeding ₹7,50,000|
|₹10,00,001 - ₹12,50,000||₹75,000 + 20% of total income exceeding ₹10,00,000||₹1,12,500 + 30% of total income exceeding ₹10,00,000|
|₹12,50,001 - ₹15,00,000||₹1,25,000 + 25% of total income exceeding ₹12,50,000||₹1,87,500 + 30% of total income exceeding ₹12,50,000|
|Above ₹ 15,00,000||₹1,87,500 + 30% of total income exceeding ₹15,00,000||₹2,62,500 + 30% of total income exceeding ₹15,00,000|
New tax regime slab rates are not differentiated based on age group. However, under old tax regime the basic income threshold exempt from tax for senior citizen (aged 60 to 80 years) and super senior citizens (aged above 80 years) is ₹ 3 lakh and ₹ 5 lakh respectively.
However, under new tax regime person cannot claim up to 70 income tax deductions while calculating taxes. Hence, every person has to make his/her own calculation as per old and new tax regime and calculate which one is beneficial based on type of investments made and returns earned on those investment.