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 Slabs	Tax rate
Upto Rs. 2.5 lakh	Nil
2.5 lakh to 5 lakh	5%
5 lakh to 10 lakh	20%
Above 10 lakh	30%

[caption id="attachment_86553" align="aligncenter" width="600"] New Income Tax Slab Rates for F.Y 2020-21 | A.Y 2021-22[/caption] 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 Slabs	Tax rate
Upto Rs. 2.5 lakh	Nil
2.5 lakh to 5 lakh	5%
5 lakh to 7.5 lakh	10%
7.5 lakh to 10 lakh	15%
10 lakh to 12.5 lakh	20%
12.5 lakh to 15 lakh	25%
Above 15 lakh	30%

  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