{"id":28673,"date":"2020-02-03T21:00:16","date_gmt":"2020-02-03T15:30:16","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=28673"},"modified":"2020-02-17T17:10:53","modified_gmt":"2020-02-17T11:40:53","slug":"income-tax-slabs-for-the-financial-year-2020-2021","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/income-tax-slabs-for-the-financial-year-2020-2021\/","title":{"rendered":"Income Tax Slabs: Tax Rates for the Financial year 2020-2021"},"content":{"rendered":"<p class=\"has-drop-cap\">The Union Government in Budget 2020 has proposed a new tax regime by slashing Income Tax Rates. Some changes have been made in the income tax slabs to decrease the total tax payable by the individuals. The Budget 2020 has offered the taxpayers <strong>an option to choose between the existing Income Tax regime which allowed income tax exemptions and deductions and a new tax regime with new income tax slabs and slashed income tax rates but no tax exemptions and deductions<\/strong>. According to the Finance Minister, the new tax regime offers lower tax rates and new tax slabs. It concurrently removes tax exemptions which will result in lower tax outgo for the individual taxpayer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>What is Income Tax Slabs?<\/strong><\/h2>\n\n\n\n<ul><li>In India, income tax is raised on individual taxpayers based on the slab system proposed by the Government.&nbsp;<\/li><li>Different tax rates are prescribed for various tax slabs, and such rates keep on increasing with the increase in income.<\/li><\/ul>\n\n\n\n<ul><li>Tax slabs are inclined to change during every budget.<\/li><li><strong>Further, if any Budget does not specify the change in the <a href=\"https:\/\/enterslice.com\/income-tax-return-filing\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"income tax slab (opens in a new tab)\">income tax slab<\/a>, the tax rate will remain the same as that of the previous year<\/strong>.<\/li><li>&nbsp;The basic tax exemption limit for a taxpayer depends on their age and residential status.<\/li><\/ul>\n\n\n\n<p>&nbsp;<strong><em>Individual taxpayers are specified in three categories according to their age<\/em><\/strong>:<\/p>\n\n\n\n<ol><li><strong>Individuals below the age of 60 years<\/strong> which includes residents as well as non-residents.<\/li><li><strong>Senior citizens (residents) who are above 60 years of age<\/strong> but below 80 years must be residents.<\/li><li>S<strong>uper senior citizens who are above the age of 80 years and must be residents<\/strong>.<\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>New Tax Slab Rates 2020- for the individuals opting for the new income tax regime<\/strong><\/h2>\n\n\n\n<p>The cess and surcharge on income tax payable in the new personal tax regime remain the same as in the existing tax regime.<br><strong><em><br><br><\/em><\/strong><\/p>\n\n\n\n<p><strong><em>These rates will apply to individual taxpayers who will give up all the exemptions and deductions prevailing under the <a href=\"https:\/\/www.incometaxindia.gov.in\/pages\/tax-laws-rules.aspx\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"income tax laws (opens in a new tab)\">income tax laws<\/a><\/em><\/strong><em>.<\/em><\/p>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><strong>Income Tax Slab<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Tax Rates<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Up to Rs.2,50,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Nil<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs.2,50,000 to Rs.5,00,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">5% of total income exceeding Rs.2,50,000<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs.5,00,000 to Rs.7,50,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">10% of total income exceeding Rs.5,00,000<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs.7,50,000 to 10,00,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">15% of total Income exceeding Rs.7,50,000<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs.10,00,000 to 12,50,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">20% of total income exceeding Rs.10,00,000<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs 12,00,000 to Rs. 15,00,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">&nbsp;25% of total income exceeding Rs 12,00,000<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Above 15,00,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">30% of the total income<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Income tax slabs and Income Tax rates for individuals below 60 years of age-Old Regime<\/strong><\/h2>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><strong>Taxable Income Slabs&nbsp;<\/strong><\/p>\n<\/td>\n<td>\n<p><strong>Income tax rates<\/strong><strong><br><br><\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Up to Rs 2,50,000<\/span><span style=\"font-weight: 400\"><br><\/span><span style=\"font-weight: 400\"><br><br><\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Nil<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs.2,50,000 to Rs.5,00,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">5% of (the total Income-Rs.2,50,000)+ 4% cess<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs 5,00,000 to Rs 10,00,000<\/span><span style=\"font-weight: 400\"><br><\/span><span style=\"font-weight: 400\"><br><br><\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">12,500+(20% of the total Income-Rs. 5,00,000)+4% cess<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs 10,00,000 and Above<\/span><span style=\"font-weight: 400\"><br><br><\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">1,10,000 + 20% of the total income +4% cess<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Income tax slabs and Income Tax rates for super senior citizens (Age 80 years and above)-Old Regime<\/strong><\/h2>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<h2><strong>Taxable income slabs<\/strong><\/h2>\n<\/td>\n<td>\n<p><strong>Income tax rates and cess<\/strong><span style=\"font-weight: 400\"><br><\/span><span style=\"font-weight: 400\"><br><br><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Up to Rs. 5,00,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Nil<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs.5,00,000 to Rs.10,00,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">20% of the (total income- Rs.5,00,000)+4% cess<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">Rs.10,00,000 and above<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">1,00,000 +30% (of the total income &ndash;Rs.10,00,000)+4% cess<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>&#65279;Certain contributions to be taxed as perquisite<\/strong><\/h2>\n\n\n\n<p>Contributions exceeding an <strong>amount of Rs. 7, 50,000 made by an employer<\/strong> to an employee&rsquo;s account in a <strong>recognized provident fund, National Pension Scheme and superannuation fund<\/strong> will be <strong>taxed perquisite<\/strong> in the hands of the employees. The annual increase to such contributions exceeding Rs. 7,50,000 will also be a taxed perquisite.<br><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Income tax calendar for the year 2020<\/strong><\/h2>\n\n\n\n<p><strong><em>In below are mentioned the major tax-related dates in all the months of 2020<\/em><\/strong>.<\/p>\n\n\n\n<table class=\"table table-bordered\">\n<tbody>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">January 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Quarterly Statement of TCS to be deposited for the quarter ending 31 December 2019<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">January 30<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Issue of Quarterly TCS Certificate in respect of the tax collected for the quarter ending 31 December 2019<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">January 31<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Quarterly statement of TDS deposited for the quarter ending 31 December 2019<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">February 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Issue of Quarterly TDS Certificate for payments other than salaries for the quarter ending 31 December 2019<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">March 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Fourth Installment of Advance Tax for the Financial year 2019-2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">March 31<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Last date of filing belated or revised ITR for the year 2018-2019<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">May 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Quarterly filing of the statement of TCS deposited for the quarter ending 31 March 2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">May 31<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Quarterly filing of the TDS deposits made for the quarter ending 31 March 2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">June 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">First Installment of Advance Tax for Financial year 2020-20121<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">June 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Date of issuing of Form 16 to the employees by the employer<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">July 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Quarterly TCS statement filing for the quarter ending June 30, 2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">July 30<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Issue of quarterly certificate for the quarter ending June 30, 2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">July&nbsp; 31<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Filing of quarterly statement of TDS for the quarter ending June 30, 2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">July&nbsp; 31<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">ITR filing deadline for individuals, HUFs, and other assessees whose book of accounts are not required to be audited<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">August 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Issue of quarterly TDS certificates for incomes other than salaries<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">September 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Payment of the second instalment of Advance Tax for the year 2020-21<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">September 30<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">ITR filing by those taxpayers whose account books need to be audited<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">October 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Filing of quarterly statement of TCS for the quarter ending on September 30, 2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">October 31<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Filing of quarterly statement of TDS deposited for the quarter ending on September 30, 2020<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">November 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">TDS Certificate to be issued for all incomes other than salaries<\/span><\/p>\n<p><span style=\"font-weight: 400\">&nbsp;<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">November 30<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">ITR filing for the taxpayer with audited books and International Transactions<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><span style=\"font-weight: 400\">December 15<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">Third Advance Tax instalment for the financial year 2020-21<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>Which tax regime old or new will be beneficial that will result in a lower tax rate for each individual is likely to depend on his or her income, composition and investments are done. Each individual taxpayer has to do his income calculations to figure out which tax regime will be more beneficial for them. So it is wise of you to consult an expert for guidance. Contact our experts in Enterslice to help you in Filing Income Tax and make it clear as to which regime will be best for you.&nbsp;<\/p>\n\n\n\n<p><strong><em>Our Recommendation: <\/em><\/strong><a rel=\"noreferrer noopener\" aria-label=\"Union Budget 2020-21: Key Highlights (opens in a new tab)\" href=\"https:\/\/enterslice.com\/learning\/union-budget-2020-21-live-from-parliament\/\" target=\"_blank\"><strong><em>Union Budget 2020-21: Key Highlights<\/em><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Government in Budget 2020 has proposed a new tax regime by slashing Income Tax Rates. Some changes have been made in the income tax slabs to decrease the total tax payable by the individuals. The Budget 2020 has offered the taxpayers an option to choose between the existing Income Tax regime which allowed [&hellip;]<\/p>\n","protected":false},"author":27,"featured_media":28676,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1473,1,2435],"tags":[],"acf":{"service_id":"78"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v14.6.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Income Tax Slabs: Tax Rate in India for the Financial year 2020-2021<\/title>\n<meta name=\"description\" content=\"Taxpayers now has an option to choose between the existing Income Tax regime which allowed income tax exemptions and deductions with new income tax slabs.\" \/>\n<meta name=\"robots\" content=\"index, follow\" \/>\n<meta name=\"googlebot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta name=\"bingbot\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterslice.com\/learning\/income-tax-slabs-for-the-financial-year-2020-2021\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Income Tax Slabs: Tax Rate in India for the Financial year 2020-2021\" \/>\n<meta property=\"og:description\" content=\"Taxpayers now has an option to choose between the existing Income Tax regime which allowed income tax exemptions and deductions with new income tax slabs.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterslice.com\/learning\/income-tax-slabs-for-the-financial-year-2020-2021\/\" \/>\n<meta property=\"og:site_name\" content=\"Enterslice\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/enterslice\" \/>\n<meta property=\"article:published_time\" content=\"2020-02-03T15:30:16+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-02-17T11:40:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Income-Tax-Slabs-Tax-Rate-in-India-for-Financial-year-2020-2021.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"670\" \/>\n\t<meta property=\"og:image:height\" content=\"352\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:creator\" content=\"@enterslice\" \/>\n<meta name=\"twitter:site\" content=\"@enterslice\" \/>\n<!-- \/ Yoast SEO plugin. -->","authorName":"Deepti Shikha","authorImageUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/01\/Deepti-Shikha.jpg","authorDescription":"Deepti is a Law graduate with an avid interest in reading and very proficient in summarizing legal cases. She has enough experience in handling legal affairs of the company. In the initial days of her career, she has worked as a legal researcher and has 3+ years of experience.","postViews":490,"readingTime":4,"nextPost":{"id":28685,"slug":"impact-of-budget-on-nbfc"},"prevPost":{"id":28636,"slug":"an-overview-of-tds-on-professional-fees-fees-for-technical-services-royalty-section-194j"},"featuredMediaUrl":"https:\/\/enterslice.com\/learning\/wp-content\/uploads\/2020\/02\/Income-Tax-Slabs-Tax-Rate-in-India-for-Financial-year-2020-2021.jpg","postTerms":"Income Tax","_links":{"self":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/28673"}],"collection":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/users\/27"}],"replies":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/comments?post=28673"}],"version-history":[{"count":0,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/posts\/28673\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media\/28676"}],"wp:attachment":[{"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/media?parent=28673"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/categories?post=28673"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterslice.com\/learning\/wp-json\/wp\/v2\/tags?post=28673"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}