Income Tax Rates for FY 2020-21
Income Tax Rates for FY 2020-21
According to Income Tax Act 1961 an assesse total income taxed as per relevant assessment year income tax rates /slab. According to Finance Act 2020 now there will be two income tax rates available to all asseesee
-
Old Regime
-
New Regime
If the individual or HUF opts to be taxed under old regime
In the case of every Individual below 60 year or Hindu undivided family
| Total Income | Rate of Tax |
| Income up to Rs,2,50,000 | Nil |
| Income Rs.2,50,001 to Rs, 5,00,000 | 5% |
| Income Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Income
above Rs.10,00,000 |
30% |
In the case of every Individual who is of the age of 60 Years or more but less than 80 Years at any time during the previous year
| Total Income | Rate of Tax |
| Income Up to Rs.3,00,000 | Nil |
| Income Rs.3,00,001 to Rs.5,00,000 | 5% |
| Income Rs.5,00,001 to Rs. 10,00,000 | 20% |
| Income above Rs.10,00,000 | 30% |
In the case of very individual who is of the age of 80 years or more at any time during the previous year.
| Total Income | Rates of Tax |
| Income Up to Rs. 5,00,000 | Nil |
| Income Rs. 5,00,001 to Rs.10,00,000 | 20% |
| Above Rs.10,00,000 | 30% |
In the case of AOP/BOI (other than a co- operative society) whether incorporated or not or every artificial judicial person
| Total Income | Rate of Tax |
| Income up to Rs,2,50,000 | Nil |
| Income Rs.2,50,001 to Rs, 5,00,000 | 5% |
| Income Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Income above Rs.10,00,000 | 30% |
Surcharge
According to Income Tax Act 1961 and assesse whose income exceeding prescribed limit he is also liable to pay surcharge. Surcharge is a tax additional tax on assesse the amount of Income Tax shall be increased by surcharge for the purpose income tax calculated.
- Income exceeding Rs. 50,00,000 But not exceeding Rs. 1 Crore 10% of such Income-Tax
- If Income exceeding Rs1 Crore but not exceeding Rs.2 Crore 15% of such Income Tax
- If income exceeding Rs.2 Crore but not exceeding Rs.5 Crore 25% of such Income Tax.
- If Income exceeding Rs. 5 Crore 37% of such Income Tax.
Marginal relief:
Marginal relief is a relief that reduce some tax amount. Marginal relief has provided in all above cases.
According Income Tax Act 1961 if an assessee tax become more than his income exceeding in next slab that is unfair.
Cess Health and Education Cess o Income Tax @ 4% on Income Tax (Inclusive of surcharge wherever applicable shall be levied.
New Regime
According to Finance Act 2020 Central Government give option to assesse for select an option from 1.Old Regime
- New Regime
Under new regime there is not allow various deduction under chapter VI A
Under new regime there is flat rate/slab of income tax for an individual or HUF mean there is no age different like below 60 years or above 60 years
Income tax Rates/Slab under New regime are given below
| Total Income | Rate of Tax |
| Income Up to Rs. 2,50,000 | Nil |
| Income Rs.2,50,001 to Rs. 5,00,000 | 5% |
| Income Rs. 5,00,001 to Rs. 7,50,000 | 10% |
| Income Rs. 7,50,001 to Rs. 10,00.000 | 15% |
| Income Rs.10,00,001 to Rs.12,50,000 | 20% |
| Income rs.12,50,0001 to 15,00,000 | 25% |
| Above Rs. 15,00,000 | 30% |
In the case of AOP/BOI (other than a co- operative society) whether incorporated or not or every artificial judicial person
| Total Income | Rate of Tax |
| Income up to Rs,2,50,000 | Nil |
| Income Rs.2,50,001 to Rs, 5,00,000 | 5% |
| Income Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Income above Rs.10,00,000 | 30% |
Conclusion:
According to Income Tax Act 1961 Finance Act 2020 first time give option to assesse for Income Tax rates/ slab.Total Income of an assesse tax according to selected option be an assesse. Under new Regime of Tax there is not allow various deduction under chapter VIA. So that old regime is best for lower income whose assessee want to claim deduction under chapter VI.
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