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Income Tax Slabs 2021 & Tax Rates for FY 2020-21/ FY 2019-20/ FY 2018-19

The due date to file income tax returns stands extended to 10th January 2021 for the tax filing of AY 2020-21. For tax audit cases and TP cases, the due date is 15th february 2021.

Income tax is levied on the income earned by all the individuals, HUF, partnership firms , LLPs and Corporates as per the Income tax Act of India. In the case of individuals, tax is levied as per the slab system if their income is above the minimum threshold limit (known as basic exemption limit).

1. What is income tax slab ?

Indian Income tax levies tax on individual taxpayers on the basis of a slab system. Slab system means different tax rates are prescribed for different ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. Such income tax slabs tend to undergo a change during every budget.These slab rates are different for different categories of taxpayers. Income tax has classified three categories of “individual “taxpayers such as:

  • Individuals (aged less than of 60 years) including residents and non-residents
  • Resident Senior citizens (60 to 80 years of age)
  • Resident Super senior citizens (aged more than 80 years)

2. Income Tax Slab Rates for FY 20-21 (AY 2021-22 )

a. Income tax slab rate for New Tax regime -FY 2020-21 – Why is it optional?

In this new regime, taxpayers has an OPTION to choose either :

  1. To pay income tax at lower rates as per New Tax regime on the condition that they forgo certain permissible exemptions and deductions available under income tax, Or
  2. To continue to pay taxes under the existing tax rates.The assessee can avail rebates and exemptions by staying in the old regime and paying tax at the existing higher rate.

Income tax slab rate applicable for New Tax regime – FY 2020-21.

Income Tax Slab New Regime Income Tax Slab Rates for FY 2020-21
(Applicable for All Individuals & HUF)
Rs 0.0 – Rs 2.5 Lakhs NIL
Rs 2.5 lakhs- Rs 3.00 Lakhs 5% (tax rebate u/s 87a is available)
Rs. 3.00 lakhs – Rs 5.00 Lakhs
Rs. 5.00 lakhs- Rs 7.5 Lakhs 10%
Rs 7.5 lakhs – Rs 10.00 Lakhs 15%
Rs 10.00 lakhs – Rs. 12.50 Lakhs 20%
Rs. 12.5 lakhs- Rs. 15.00 Lakhs 25%
> Rs. 15 Lakhs 30%

Difference of slab rates between New tax regime vs Old Tax regime

NOTE:
  • Please note that the tax rates in the New tax regime is the same for all categories of Individuals, i.e Individuals & HUF upto 60 years of age, Senior citizens above 60 years upto 80 years , and Super senior citizens above 80 years. Hence no increased basic exemption limit benefit will be available to senior and super senior citizens in the New Tax regime.

  • Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes.

  • Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.

  • Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases. (increased from 3% since FY 18-19)

  • Surcharge applicable as per tax rates below in all categories mentioned above:

    1. 10% of Income tax if total income > Rs.50 lakh

    2. 15% of Income tax if total income > Rs.1 crore

    3. 25% of Income tax if total income > Rs.2 crore

    4. 37% of Income tax if total income > Rs.5 crore

b. Income tax slabs rate for Old Tax regime -FY 2020-21

Select your Age Group:  

Income tax slabs for Individual aged below 60 years & HUF

Income Tax Slab Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs
Up to Rs 2.5 lakhs NIL
Rs. 2.5 lakh -Rs. 5Lakhs 5%
Rs 5 .00 lakh – Rs 10 lakhs 20%
> Rs 10.00 lakh 30%
NOTE:
  • Income tax exemption limit is up to Rs.2,50,000 for Individuals , HUF below 60 years aged and NRIs for FY 2018-19

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

  • Surcharge:

    1. 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    2. 15% of income tax, where the total income exceeds Rs.1 crore.

Income tax slab for Individual aged above 60 years to 80 years

Income Tax Slab Tax Rates for Senior citizens aged above 60 Years & Less than 80 Years
Rs 0-.00- Rs. 3.00 lakh NIL
Rs 3.00 lakh- Rs 5.00 Lakh 5%
Rs 5.00 lakh – Rs 10 Lakh 20%
> Rs 10 Lakh 30%
NOTE:
  • Income tax exemption limit is up to Rs. 3,00,000 for senior citizen aged above 60 years but less than 80 years for FY 2018-19

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above

  • Surcharge applicability::

    1. 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    2. 15% of income tax, where the total income exceeds Rs.1 crore.

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Income tax slab for Individual aged more than 80 years

Income Tax Slab Tax Rates for Super Senior Citizens (Aged 80 Years And Above)
Rs 0.00 – Rs 5.00 Lakh* No tax
Rs 5.00 lakh – Rs 10 Lakh 20%
> Rs 10 Lakh 30%
NOTE:
  • Income tax exemption limit is up to Rs. 5,00,000 for super senior citizen aged above 80 years for FY 2018-19

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

  • Surcharge applicability::

    1. 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    2. 15% of income tax, where the total income exceeds Rs.1 crore.

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c. Difference of slab rates between New tax regime & Old Tax regime

Income Tax Slab Existing Regime Slab Rates for FY 19-20 and FY 20-21 New Regime Slab Rates for FY 20-21
Resident Individuals & HUF < 60 years of age & NRIs Resident Individuals & HUF > 60 to < 80 years Resident Individuals & HUF > 80 years Applicable for All Individuals & HUF
Rs 0.0 – Rs 2.5 Lakhs NIL NIL NIL NIL
Rs 2.5 – Rs 3.00 Lakhs 5% (tax rebate u/s 87a is available) NIL NIL 5% (tax rebate u/s 87a is available)
Rs. 3.00- Rs 5.00 Lakhs 5% (tax rebate u/s 87a is available) NIL
Rs. 5.00 – Rs 7.5 Lakhs 20% 20% 20% 10%
Rs 7.5 – Rs 10.00 Lakhs 20% 20% 20% 15%
Rs 10.00 – Rs. 12.50 Lakhs 30% 30% 30% 20%
Rs. 12.5 – Rs. 15.00 Lakhs 30% 30% 30% 25%
> Rs. 15 Lakhs 30% 30% 30% 30%

d. Conditions for opting New Tax regime.

The taxpayer opting for concessional rates in the New Tax regime will have to forgo certain exemptions and deductions available in the existing old tax regime. In all there are 70 deductions & exemptions that are not allowed, out of which the most commonly used are listed below:

List of common Exemptions and deductions “ not allowed” under New Tax rate regime
  1. Leave Travel Allowance (LTA)

  2. House Rent Allowance (HRA)

  3. Conveyance allowance

  4. Daily expenses in the course of employment

  5. Relocation allowance

  6. Helper allowance

  7. Children education allowance

  8. Other special allowances [Section 10(14)]

  9. Standard deduction on salary

  10. Professional tax

  11. Interest on housing loan (Section 24)

  12. Deduction under Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2))

List of deductions “allowed” under new Tax rate regime
  1. Transport allowance for specially abled people

  2. Conveyance allowance for expenditure incurred for travelling to work

  3. Investment in Notified Pension Scheme under section 80CCD(2)

  4. Deduction for employment of new employees under section 80JJAA

  5. Depreciation u/s 32 of the Income-tax act except additional depreciation.

  6. Any allowance for travelling for employment or on transfer

e. Example for Old Tax regime Vs New Tax regime & which is better?

The new tax regime can largely benefit middle class taxpayers who have a taxable income upto Rs 15 lakh. Old regime is a better option for high-income earners.

The new income tax regime is beneficial for people who make low investments. As the new regime offers seven lower income tax slabs, anyone paying taxes without claiming tax deductions can benefit from paying a lower rate of tax under the new tax regime. For instance, assessee having total income before deduction up-to Rs 12 lakh will have higher tax liability under the old system if they have investments less than Rs 1.91 lakh. Therefore, if you invest less in tax-saving schemes, go for the new regime.

That being said, if you already have in place a financial plan for wealth creation by making investments in tax-saving instruments; mediclaim and life insurance; making payments of children’s tuition fees; payment of EMIs on education loan ;buying a house with a home loan; and so on, the old regime helps you with higher tax deductions and lower tax outgo.

In light of the above and considering the new income tax regime, if taxpayers want to opt for the concessional tax rates, they may evaluate both regimes. Hence, it is advisable to do a comparative evaluation and analysis under both regimes and then choose the most beneficial one as it may vary from person to person.

Let’s take an example of comparing the Old & New tax regime of an assessee with Rs 10 Lakh income.

Mr. Rahul has a salary income of Rs 10 lakh. His total investment u/s 80C is Rs 1.7 lakh under ELSS, PF, LIC premium and principal installment of home loan. Further he pays Medical insurance for himself and his wife of Rs 28000. If he opts for the old tax regime, then he can claim the above deductions, however if he wishes to go for a new tax regime than these deductions will not be available. He has paid home loan interest of Rs 75000 in FY 20-21. Let us see the tax outflow in both the regimes

Particulars Old Tax Regime (Rs) New Tax Regime (Rs)
Gross Income 1,000,000 1,000,000
Deductions:
u/Sec: 80C 150,000
u/Sec: 80D 25,000
u/Sec: 24(b) 75,000
Taxable Income 750,000 1,000,000
Tax Slab (OLD)
0 to 2.5 Lakh
2.5 to 5 Lakh @ 5% 12,500
5 Lakh to 10 Lakh @ 20% 50,000
> 10 Lakh @ 30%
Tax Slab (NEW)
0 to 5 Lakh
2.5 to 5 Lakh @ 5% 12,500
5 to 7.5 Lakh @ 10% 25,000
7.5 Lakh to 10 Lakh @ 15% 37,500
10 Lakh to 12.5 Lakh @ 20%
12.5 Lakh to 15 Lakh @ 25%
> 15 Lakh @ 30%
Income Tax 62,500 75,000
Cess @ 4% 2,500 3,000
Total Tax Outgo 65,000 78,000

As per illustration above, if the gross income is more than Rs 10 lakh or and deductions u/S 80C, 80D, and 24(b) of the Income Tax Act are availed , then older regime is more beneficial from tax planning standpoint. While for individuals in the middle-income group, earning a gross income of say Rs 5 lakh; the new tax slab regime may prove advantageous.

f. Time of Selection of option of ols vs new regime?

Nature of Income Time of Selection of option of old vs new regime
Income from Salary or any other head of income attracting TDS

An employee can opt to choose for the new tax regime and intimate their employer at the beginning of FY 2020-21 . Employees can change the option of selecting the tax regime every year

However if new tax slab regime is opted at the begning of the year, it cannot be changed anytime during the year for TDS purpose, however the option can be changed at the time of filing of Income-tax return.

Income from Business & Profession In case of Business or profession income , the option to choose between the tax regimes is available only once for a particular business.

g. New Tax regime Slab rates for domestic companies – FY 2020-21.

Particulars Existing / Old regime Tax rates New Regime Tax rates

Company opts for section 115BAB (not covered in section 115BA and 115BAA) & is registered on or after October 1, 2019 and has commenced manufacturing on or before 31st March, 2023.

15%

Company opts for Section 115BAA , wherein the total income of a company has been calculated without claiming specified deductions, incentives, exemptions and additional depreciation

22%

Company opts for section 115BA registered on or after March 1, 2016 and engaged in manufacture of any article or thing and does not claim deduction as specified in the section clause.

25%

Turnover or gross receipt of the company is less than Rs. 400 crore in the previous year 2018-19

25% 25%

Any other domestic company

30% 30%

*Please refer to the new sections for checking the applicability for above concessional income tax rates.

  • Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.

  • Surcharge applicable for companies is as below:
    1. 7% of Income tax where total income > Rs 1 crore
    2. 12% of Income tax where total income > Rs.10 crore
    3. 10% of income tax where domestic company opted for section 115BAA and 115BAB

h. Income tax rate for Partnership firm or LLP as per old/ new regime.

A partnership firm/ LLP is taxable at 30%.
* 12% Surcharge is levied on incomes above Rs 1 crore. Health and Education cess at the rate of 4 % Note- There are no concessional rates introduced for firms / LLPs in nex tax regime.

3. Income tax slab rates for FY 2019-20

Select your Age Group:  

Income tax slab for Individual aged below 60 years & HUF

Income Tax Slab Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs
Up to ₹2,50,000* Nil
₹2,50,001 to ₹5,00,000 5%
₹5,00,001 to ₹10,00,000 20%
Above ₹10,00,000 30%
NOTE:
  • Income tax exemption limit is up to Rs.2,50,000 for Individuals , HUF below 60 years aged and NRIs for FY 2018-19

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above

  • Surcharge:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – 15% of income tax, where the total income exceeds Rs.1 crore.

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Income tax slab for Individual aged above 60 years to 80 years

Income Tax Slab Tax Rates for Senior citizens aged above 60 Years & Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • Income tax exemption limit is up to Rs. 3,00,000 for senior citizen aged above 60 years but less than 80 years for FY 2018-19

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

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Income tax slab for Individual aged more than 80 years

Income Tax Slab Tax Rates for Super Senior Citizens (Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • Income tax exemption limit is up to Rs. 5,00,000 for super senior citizen aged above 80 years for FY 2018-19

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore

    – 15% of income tax, where the total income exceeds Rs.1 crore. *

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Income Tax Slab FY 2018-19 (AY 2019-20) for Domestic Companies

Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the previous year 25%
Gross turnover exceeding 250 Cr. in the previous year 30%
NOTE:
  • In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax

  • Surcharge applicability:

    – Taxable income is more than 1Cr. but less than 10Cr.: 7%

    – Taxable income is more than 10Cr. :12%

4. Income Tax Slab Rates for FY 2018-19

Select your Age Group:  

Income tax slab for Individual aged below 60 years & HUF

Income Tax Slab Tax Rates for Individual & HUF Below the Age Of 60 Years
Income up to Rs 2,50,000* No tax
Income from Rs 2,50,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – 15% of income tax, where the total income exceeds Rs.1 crore.

Invest Now & Save Upto ₹ 46,800 on Taxes

Income tax slab for Individual aged above 60 years to 80 years

Income Tax Slab Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – 15% of income tax, where the total income exceeds Rs.1 crore. Invest Now & Save Upto ₹ 46,800 on Taxes

Income tax slab for Individual aged more than 80 years

Income Tax Slab Tax Rates for Super Senior Citizens (Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – 5% of income tax, where the total income exceeds Rs.1 crore

Invest Now & Save Upto ₹ 46,800 on Taxes

Income Tax Slab for Domestic Companies FY 2018-19

Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the previous year 25%
Gross turnover exceeding 250 Cr. in the previous year 30%
NOTE:
  • In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax.

  • Surcharge applicability:

    – Taxable income is more than 1Cr. but less than 10Cr.: 7%

    – Taxable income is more than 10Cr. :12%

5. Income Tax Slab Rates for FY 2017-18

Select your Age Group:  

Income tax slab for Individual below 60 years & HUF

Income Tax Slab Tax Rates for Individual & HUF Below the Age Of 60 Years
Income up to Rs 2,50,000* No tax
Income from Rs 2,50,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – 15% of income tax, where the total income exceeds Rs.1 crore.

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Income tax slab for Individual aged above 60 years to 80 years

Income Tax Slab Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – 15% of income tax, where the total income exceeds Rs.1 crore.

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Income tax slab for Individual aged more than 80 years

Income Tax Slab Tax Rates for Super Senior Citizens (Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
NOTE:
  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

  • Surcharge applicability:

    – 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

    – 5% of income tax, where the total income exceeds Rs.1 crore

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Income Tax Slab for Domestic Companies FY 2017-18

Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the previous year 25%
Gross turnover exceeding 250 Cr. in the previous year 30%
NOTE:
  • In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax.

  • Surcharge applicability:

    – Taxable income is more than 1Cr. but less than 10Cr.: 7%

    – Taxable income is more than 10Cr. :12%

6. How to Calculate Income Tax from Income Tax Slabs?

Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income, and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues for FY 2018-119 (AY 2019-2019).

Income Tax Slabs Tax Rate Tax Calculation
*Income up to Rs 2,50,000 No tax
Income from Rs 2,50,000 – Rs 5,00,000 5% (Rs 5,00,000 – Rs 2,50,000) Rs 12,500
Income from Rs 5,00,000 – 10,00,000 20% (Rs 8,00,000 – Rs 5,00,000) Rs 60,000
Income more than Rs 10,00,000 30% nil
Tax Rs 72,500
Cess 4% of Rs 72,500 Rs 2,900
Total tax in FY 2017-18 (AY 2018-19) Rs 75,400

*Please note that Rohit is an individual taxpayer assessee having an income tax exemption of Rs 2,50,000. For other taxpayers assessee i.e senior citizens and super senir citizens, the Income tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000 respectively.

7. Frequently Asked Questions (FAQ’s)

  • Do I have to mandatorily opt for New tax regime while filing returns for AY 20-21?

    No, the New Income Tax regime is an Optional & was introduced by the finance department to simplify the tax filing. The taxpayer has an option to either choose a New Tax regime or continue with the Old tax regime. If you are an employee, then the option is to be chosen at the starting of the year and can be changed next year. However, in case of business or profession, the option to choose is available only once in AY 20-21. We will advise you to evaluate your tax outgo considering both the regimes and then chose the one most beneficial to you.

  • Can I claim 80C deductions and opt for a new income tax slab regime ?

    No, the new tax regime does not allow many deductions and exemptions allowed in the old/ existing tax rate regime. Deductions u/s 80C cannot be claimed in the taxpayer is opting for concessional tax slab rates as per New regime.

  • How should I calculate Income Tax for F.Y 2020-21

    FY 20-21 allows an individual tax payer to pay the taxes by opting either of two tax regimes, The old tax regime or the New one. The new income tax regime gives the individual the freedom to continue with the old tax regime if they wish to. While opting for the new tax regime, the taxpayer will have to forgo certain deductions and exemptions that are allowed in the old tax regime which will be available if the Old tax regime is chosen to continue.The new tax regime has only one deduction which is the one under Section 80CCD(2). This means the employer’s contribution to the employee’s National Pension Scheme is deducted from the annual salary. Under both old and new regimes, you can deduct Rs 2,50,000 from your gross salary to arrive at your net taxable income since the basic exemption is applicable to both regimes.

  • How does the government collect the taxes?

    Taxes are collected by the Government through three means: a) voluntary payment by taxpayers into various designated Banks. For example, Advance Tax and Self Assessment Tax paid by the taxpayers, b) Taxes deducted at source [TDS] from the income of the receiver, and c)Taxes collected at source [TCS].

  • What is the time period considered for the purpose of levy of income tax?

    Income-tax is levied on the annual income of a person. The year under the Income-tax Law is the period starting from 1st April and ending on 31st March of next calendar year. The Income-tax Law classifies the year as (i) Previous year, and (ii) Assessment year.

  • On the Challan, what does income tax on companies and income tax other than companies mean?

    The tax that is to be paid by the companies on their income is called as corporate tax, and for payment of same in the challan it is mentioned as Income-tax on Companies (Corporation tax)-0020. Tax paid by non-corporate assessees is called as Income-tax, and for payment of the same in the challan it is to be mentioned as Income-tax (other than Companies)-0021

  • Is the due date for filing an Income tax Return same for all the taxpayers?

    No, the due date for all the taxpayers is not the same. For individual taxpayers the due date is 31st July of the assessment year. However due to Covid, the due date for filing ITR for FY 19-20 has been extended to 31st Dec for individual / HUF , non -audit cases whereas it is 31st Jan for audit cases.

  • What is the meaning of rebate under section 87 A under the IT Act?

    Section 87A is a legal provision which allows for tax rebate under the Income Tax Act of 1961. The section which was inserted through the Finance Act of 2013 provides tax relief for individuals earning below a specified limit. Section 87 A provides that anyone who is residing in India and whose income does not exceed Rs 5,00,000 is eligible to claim a rebate. Thus full income tax rebate is available with individuals with less than Rs 5 Lac of total taxable income. This rebate is applicable only to individuals and not companies, etc and is calculated before adding the health and educational cess of 4 %.

  • Who decides the IT slab rates and can they change?

    Yes, IT slab rates can be changed by the government . If there are changes in IT slab rates for the financial year then they are introduced in the Budget for that year and presented in Parliament.

  • Are there separate slab rates for different categories?

    Yes. There are separate slab rates for individual taxpayers aged below 60 years, between 60 to 80 years (senior citizens) and above 80 years (super senior citizens). Also tax rate for partnership firms and LLPs, Companies, Local authorities and Co-operative societies etc are different.

  • Do I need to file Income Tax Return (ITR) if my annual income is below ₹ 2.5 lakh of basic exemption limit?

    The taxation process is dependent on a number of factors. It is advisable to get in touch with a personal tax advisor.

  • How to file an income tax return online?

    To submit your income tax return online, log on to either the income tax e-filing portal or you can also e-file through ClearTax . For e-filing through the income tax portal, log on to https://www.incometaxindiaefiling.gov.in/home and download the excel/Java utilities from the “download > ITR return preparation software” tab on the main screen. You can extract the ZIP files and fill the required information in these utilities and upload it after logging in with PAN, password and the captcha. Please remember to verify the return before submitting or within 120 of filing ITR. ITR filing is incomplete without verification. You can also directly fill the details in the auto-populated ITR form through “prepare and submit online”. Please click here to read the step-by-step guide on how to e-file ITR on the income tax e-filing portal. Also, you can simplify your e-filing and do it in under 7 minutes with ClearTax . Click here to know how.

  • How much income is tax free in india?

    Income tax law has prescribed a basic limit for individuals upto which the taxpayers are not required to pay taxes. Such a limit is different for different categories of taxpayers. Individual below 60 years of age are not required to pay tax upto the income limit of Rs 2.5 Lakh. Individuals above 60 years but less than 80 years of age are not required to pay tax upto Rs 3 lakh of income. Individuals above 80 years are not required to pay tax upto Rs 5 lakh of income.

  • How to calculate surcharge on income tax?

    Surcharge is a tax on tax. Hence surcharge is calculated on the tax payable and not on the income earned. For example, if you have an income of Rs 1000 with 30% tax of Rs. 300, if the income is subject to surcharge then 10% surcharge would be levied on tax of Rs. 300 i.e Rs 30. Surcharge is levied at different rates i.e 10% is levied is total income is > 50 lakh, 15% is levied if total income is more than 1 crore, 25% of income if total income is > 2 crore and 37% if total income is more than 5 crore.

  • How to calculate the age of a senior citizen for income tax?

    Individual above the age of 60 years is regarded as a senior citizen whereas an individual above 80 years is regarded as a super senior citizen for the purpose of income tax. Senior citizens and super senior citizens have been provided higher tax exemption limits and specific benefits by the income tax law in order to provide some relief.

  • How to pay income tax online?

    To make payment of income tax online, please login to nsdl.com. Please select the relevant challan for example ‘challan no / ITNS 280’ for payment in case of self assessment tax and select on proceed. A window will open , select tax payal as “income tax (other than companies) , select type of payment , select mode of payment, and enter details like PAN , AY , address etc. Once you proceed , a separate window will open requiring you to make the payment using either net banking or debit card. Once the payment is complete,a counterfoil will be displayed as a proof of payment. Please save this counterfoil for future reference.

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Income Tax Slab Videos

Income Tax Slabs under Old Regime

Income Tax Slabs under New Regime