New Income Tax Slab Rates for F.Y 2020-21 | A.Y 2021-22

Deepak Gupta | Feb 1, 2020 |

New Income Tax Slab Rates for F.Y 2020-21 | A.Y 2021-22

New Income Tax Slab Rates for F.Y 2020-21 | A.Y 2021-22

Budget 2020: FM Nirmala Sitharaman today proposed new income tax slabs and lower tax rates for F.Y 2020-21 | A.Y 2021-22. Lower income tax rates are optional and are available to those who are willing to forego some exemptions and some deductions. The new income tax rates will be significantly reduced for those who forego reliefs, exemptions, the finance minister said.

INCOME TAX SLAB RATES FOR INDIVIDUAL ASSESSEE

Option 1 -OLD TAX REGIME with deductions & exemptions:
For Non-Senior Citizen (Age – less than 60 years)

An Individual whether an Indian resident or non-resident Indian who is less than 60 years of age will be considered as Non-Senior Citizen and would be taxed at the following rates depending upon the slabs of income.

Income Tax SlabsTax rate
Upto Rs. 2.5 lakhNil
2.5 lakh to 5 lakh5%
5 lakh to 10 lakh20%
Above 10 lakh30%
New Income Tax Slab Rates for F.Y 2020-21 | A.Y 2021-22

New Income Tax Slab Rates for F.Y 2020-21 | A.Y 2021-22

Option 2 -NEW TAX REGIME with no deductions no exemptions:
For Non-Senior Citizen (Age – less than 60 years)

An Individual whether an Indian resident or non-resident Indian who is less than 60 years of age will be considered as Non-Senior Citizen and would be taxed at the following rates depending upon the slabs of income.

Income SlabsTax rate
Upto Rs. 2.5 lakhNil
2.5 lakh to 5 lakh5%
5 lakh to 7.5 lakh10%
7.5 lakh to 10 lakh15%
10 lakh to 12.5 lakh20%
12.5 lakh to 15 lakh25%
Above 15 lakh30%

 

These new income tax related proposals will come into effect from the assessment year 2021-22 or financial year 2020-21.

Please note that these are the summarised updates based on proposed budget. Please see detailed Memorandum of understanding before forming an Opinion. For Discussion please comment below. Also note that this budget is subject to Parliament approval before it becomes an Act.

Tags : Budget 2020 , Income Tax, Union Budget 2020, GST, slab rates, Income Tax Deduction

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"




Author Bio
My Recent Articles
CBSE Class 12 History Paper Analysis 2024: CBSE Class 12 History Answer Key 2024 Testing Article CA Inter and Foundation Exams to be held thrice a year [ICAI Releases Official Press Release] CA Exams May 2024: 4.36 lakh students to appear for CA Foundation, Intermediate and Final TS SSC 2024 Hall Ticket Released: Telangana Class 10th admit card out, @ bse.telangana.gov.inView All Posts