Income tax slab rates in India – AY 2020-21 (FY 2019-20)

Income Tax Slab Rates In India- AY 2020-21 (FY 2019-20)

Income tax is charged on individuals on the basis of their income known as income tax slab. These slab rates are changed almost every year in the Budget. These income tax slabs differ with the age group: Normal Citizens(upto the age of 60 years) Senior Citizens(more than 60 but upto 80 years) Super Senior Citizens( more than 80 years)Domestic Companies, Foreign Companies, Partnership Firm/ LLP/ Local Authorities and Co-operative societies:

Slabs have remained unchanged for FY 2019-20 and AY 2020-21 for all citizens (including Senior Citizens). Standard Deduction for salaried taxpayers has been increased from Rs. 40,000 to Rs. 50,000. Education Cess on Income Tax has remained the same at 4%.

Income Tax Slab for Resident Individual (Below 60 Years Old), HUF and AOP/BOI/Artificial juridical person-

• 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%

Health and Education Cess: 4% of Income Tax plus Surcharge.

Income Tax Slab for Senior Citizens (60 Years Or More 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%

Income Tax Slab for Senior Citizens (80 Years Or More)

• 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%

Surcharge:

10% of income tax, where total income exceeds INR 50 lakh up to INR 1 crore. 15% of income tax, where the total income exceeds INR 1 crore up to INR 2 crore. 25% of income tax, where total income exceeds Rs 2 crore upto Rs 5 crore and 37% of income tax, where total income exceeds Rs 5 crore.

Note 1: Rebate U/s. 87A

Assessee being a resident individual in India, whose total income after claiming deduction under chapter VI A does not exceed Rs. 5,00,000 shall be entitled to the rebate under section 87A of an amount equal to a hundred percent of such income-tax or an amount of Rs. 12,500, whichever is less. further, please note that this rebate is applied to the total tax before adding the Education Cess (4%).

Income Tax Slab for Domestic Companies-

As per the Taxation Laws Bill, 2019, the amended Slab rates For Companies Are as under:

A. For All Existing Domestic Companies [As per section 115BA]:

Particular	Income Tax
Companies with Turnover in 2017-18 upto ₹ 400 crores	25%
Companies with Turnover in 2017-18 exceeding ₹ 400 crores	30%

Surcharge: 7% of taxable income if net income exceeds 1 crore but does not exceed 10 crores and 12% of taxable income if net income exceeds 10 crores.

Health and Education Cess: 4% of Income Tax Plus Surcharge

B.For All Existing Domestic Companies (irrespective of its date of incorporation or nature of activity) [As per section 115BAA]

Income Tax Rate: 22% (Subject to Note 1)

Surcharge: 10% of taxable income if net income exceeds 1 crore.

Health and Education Cess: 4% of Income Tax Plus Surcharge

Income Tax Slab for Foreign Companies

Particular	Income Tax
In case of Royalty received from govt/Indian concern or technical fees as per agreement approved by government	50%
Any other Income	40%

Surcharge: 2% of taxable income if net income exceeds 1 crore but does not exceed 10 crores and 5% of taxable income if net income exceeds 10 crores.

Health and Education Cess: 4% of Income Tax plus Surcharge.

♦ Income Tax Slab for Partnership Firm/ LLP/ Local Authorities

Income Tax Rate: 30%

Surcharge: 12% of taxable income if net income exceeds 1 crore.

Health and Education Cess: 4% of Income Tax Plus Surcharge

♦ Income Tax Slab for Co-operative societies:

Taxable Income	Tax Rate
Upto Rs 10,000	10%
Rs. 10,000 to Rs. 20,000	20%
Above Rs. 20,000	30%

Surcharge: 12% of taxable income if net income exceeds 1 crore.

Health and Education Cess: 4% of Income Tax Plus Surcharge