Income Tax Slab Rates – FY 2020-21(AY 21-22)

Income Tax Slab Rates – FY 2020-21(AY 21-22)

Applicable for AY 21-22

 

After the announcement of Union Budget 2020, on 1st February 2020, the slab rates have drastically changed compared to FY 19-20. In India, income tax slab rates are dependent upon the age of the assessee as well as the residential status. Upto certain income there will be no tax applicable on individuals that are called the basic exemption limit. These basic exemption limits defer based on the age of the assessee. Different tax rates have been prescribed for different income slabs and it keeps on increasing with an increase in the income slab.

There is no change in the minimum threshold limits of Income Tax Exemptions from the last assessment year.

There is no change in the rate (4%) of health & education cess for all categories of Taxpayers.

The assessee will be given two options to select from

• Option 1 New tax regime with no deductions no exemptions
• Option 2 Old tax regime with  deductions and exemptions

 

INCOME TAX SLAB RATES FOR INDIVIDUAL ASSESSEE (Option 1 -NEW TAX REGIME with no deductions no exemptions)

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.

Note: For checking the age – Assessee should not be 60 years or more than 60 years old on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

Senior Citizen (Age – between 60 to 80 years)

Note: For checking the age – Assessee should be 60 years or more but not 80 years or above on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

Super Senior Citizen (Age – above 80 years)

Note: For checking the age – Assessee should be 80 years or above on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

 

INCOME TAX SLAB RATES FOR INDIVIDUAL ASSESSEE (Option 2 – OLD TAX REGIME with deductions & exemptions)

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.

Note: For checking the age – Assessee should not be 60 years or more than 60 years old on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

Senior Citizen (Age – between 60 to 80 years)

Note: For checking the age – Assessee should be 60 years or more but not 80 years or above on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

su_table]

Income Slabs	Tax rate
Upto Rs. 3 lakh	Nil
3 lakh to 5 lakh	5%
5 lakh to 10 lakh	20%
Above 10 lakh	30%

[/su_table]

Super Senior Citizen (Age – above 80 years)

Note: For checking the age – Assessee should be 80 years or above on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

 

Due dates of filing Income Tax Return

The due date for filing an Income tax return for FY 2020-21 for the individual assessee is 31st July 2021.

The due date for filing an Income tax return for FY 2020-21 for the individual assessee whose books of accounts are subject to audit u/s 44AB is 30th September 2021.

 

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The article is compiled by CA Ankita Khetan. If you have any queries concerning the above article. Please write to us either in the comments section below or email us on info.financepost@gmail.com.

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