Income Tax

Every year with Government budget, the most common expectation an Indian citizen has is of 'change for better' in the Income tax slab. So to plan your investment strategy and understand how much tax liability you will incur this year let’s have a look at the tax structure for different categories. These categories are created by the Government of India for taxation purposes, and they are based on Gender and Age.

  • F.Y. 2020 - 2021
  • F.Y. 2019 - 2020

Income Tax Slabs 2020-2021 for Individuals & HUF below 60 years of age

Net income range Income-Tax rate
Up to 2,50,000 Nil
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above 10,00,000 30%
*Rebate of 12,500 will be available for taxpayers with taxable income up to 5 lakh available under Section 87A

Income Tax Slabs 2020-2021 for Senior Citizens (Aged 60 years but less than 80 years)

Net income range Income-Tax rate
Up to 3,00,000 Nil
3,00,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above 10,00,000 30%
*Rebate of 12,500 will be available for taxpayers with taxable income up to 5 lakh available under Section 87A

Income Tax Slabs 2020-2021 for Super Senior Citizens (Above 80 years)

Net income range Income-Tax rate
Up to 5,00,000 Nil
5,00,001 - 10,00,000 20%
Above 10,00,000 30%
*Rebate of 12,500 will be available for taxpayers with taxable income up to 5 lakh available under Section 87A

Tax rates if the Assesse has opted for section 115BAC [Applicable in case of all Individuals & HUF]

Total Income Rate of tax
Up to 2,50,000 Nil
From 2,50,001 to 5,00,000 5%
From 5,00,001 to 7,50,000 10%
From 7,50,001 to 10,00,000 15%
From 10,00,001 to 12,50,000 20%
From 12,50,001 to 15,00,000 25%
Above 15,00,000 30%
Plus: - Surcharge: -
  • 10% of income tax where total income exceeds 50,00,000.
  • 15% of income tax where total income exceeds 1,00,00,000.
  • 25% of income tax where total income exceeds 2,00,00,000.
  • 37% of income tax where total income exceeds 5,00,00,000.
Note: Enhanced surcharged levied at the rates of 25%/37% shall not be levied in case of income accessable under sections 111A / 112A or 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

Income Tax Slabs 2019-2020 for Individuals & HUF below 60 years of age

Taxable income slabs Tax and Cess Change In Amount
Income tax rates and cess Educational cess Post Budget Tax Liability Increase in TAX due to cess
Up to 2.5 lakhs Nil Nil - -
2,50,001 to 5,00,000 5% of (Total income minus 2,50,000) + 4% cess 2% of Income Tax 13000 125
5,00,001 to 10,00,000 12,500 + 20% of (Total income minus 5,00,000) + 4% cess 2% of Income Tax 1,17,000 1125
10,00,001 and above 1,12,500 + 30% of (Total income minus 10,00,000) + 4% cess 2% of Income Tax 2,73,000 2625
*Rebate of 12,500 will be available for taxpayers with taxable income up to 5 lakh available under Section 87A

Income Tax Slabs 2019-2020 for Senior citizens (Aged 60 years but less than 80 years)

Taxable income slabs Tax and Cess Change In Amount
Income tax rates and cess Educational cess Post Budget Tax Liability Increase in TAX due to cess
Up to 3 lakhs Nil Nil - -
3,00,001 to 5,00,000 5% of (Total income minus 3,00,000) + 4% cess 2% of Income Tax 10400 100
5,00,001 to 10,00,000 10,000 + 20% of (Total income minus 5,00,000) + 4% cess 2% of Income Tax 1,14,400 1100
10,00,001 and above 1,10,000 + 30% of (Total income minus 10,00,000) + 4% cess 2% of Income Tax 2,70,400 2600
*Rebate of 12,500 will be available for taxpayers with taxable income up to 5 lakh available under Section 87A

Income Tax Slabs 2019-2020 for Super Senior citizens (Above 80 Years)

Taxable income slabs Tax and Cess Change In Amount
Income tax rates and cess Educational cess Post Budget Tax Liability Increase in TAX due to cess
Up to 5 lakhs Nil Nil - -
5,00,001 to 10,00,000 20% of (Total income minus 5,00,000) + 4% cess 2% of Income Tax 1,04,000 1000
10,00,001 and above 1,00,000 + 30% of (Total income minus 10,00,000) + 4% cess 2% of Income Tax 2,60,000 2500
*Rebate of 12,500 will be available for taxpayers with taxable income up to 5 lakh available under Section 87A

Income Tax Slabs 2019-2020 for Super Senior citizens (Above 80 Years)

Taxable income slabs Tax and Cess Change In Amount
Income tax rates and cess Educational cess Post Budget Tax Liability Increase in TAX due to cess
Up to 5 lakhs Nil Nil - -
5,00,001 to 10,00,000 20% of (Total income minus 5,00,000) + 4% cess 2% of Income Tax 1,04,000 1000
10,00,001 and above 1,00,000 + 30% of (Total income minus 10,00,000) + 4% cess 2% of Income Tax 2,60,000 2500
Surcharges to be levied for FY 2019-20:
Taxable Income Surcharge (%)
Income above 50 lakh but below 1 crore 10
Income above 1 crore but below 2 crore 15
Income above 2 crore but below 5 crore 25
Income above 5 crore 37
For Non-resident individuals (NRI), the basic exemption limit is of 2.5 lakh in a financial year irrespective of their age.
A resident individual can also avail rebate under Section 87(A) whose net income is equal to or less than 3.5 lakh. The amount of rebate under this section is 100% of the income tax or 2,500 whichever is less. It is deductible before calculating the cess.

What changed for Super HNIs?

Income Between 2 Crore and 5 Crore
Existing Proposed
Total Income 3,00,00,000 3,00,00,000
Deduction Claimed -6,00,000 -6,00,000
New Taxable Income 2,94,00,000 2,94,00,000
Tax on this 86,32,500 86,32,500
Surcharge 12,94,875 21,58,125
Cess 3,97,095 4,31,625
Total Tax 1.03 Crore 1.12 Crore
Higher By 8.98 Lakh Per Year
74,815 Per Year
Income Above 5 Crore
Existing Proposed
Total Income 6,00,00,000 6,00,00,000
Deduction Claimed -10,00,000 -10,00,000
New Taxable Income 5,90,00,000 5,90,00,000
Tax on this 1,75,12,500 1,75,12,500
Surcharge 26,26,875 64,79,625
Cess 8,05,575 9,59,685
Total Tax 2.09 Crore 2.49 Crore
Higher By 40 Lakh Per Year
3.33 Lakh Per Year