Income Tax Slabs

01/07/2021 0 By indiafreenotes

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).

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)

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%

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

Income tax slabs for Individual aged below 60 years & HUF

Income Tax Slab Individuals Below The Age Of 60 Years – Income Tax Slabs
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 Slabs for Senior Citizens (Aged 60 Years but 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%