Income Tax Slab As Per Old Tax Regime

In India, tax laws divide taxpayers into different groups as per their taxable income and levy income tax at different rates. These groups are called Income Tax Slabs. This type of taxation enables progressive and fair tax systems in the country. Such Income Tax Slabs tend to undergo a change during every budget. These slab rates are different for different categories of taxpayers. Hereunder this post, we will discuss Income Tax Slab As Per Old Tax Regime.

Income tax Slabs

In the budget 2020, Finance Minister Nirmala Sitharaman introduced the new income tax rates for individual and HUF taxpayers in India. under the new regime, the taxpayer has an option to choose either a new regime or stay in the old regime.

New Regime (Section 115BAC)- Here taxpayers can choose to pay tax at lower rates as per the new regime on the condition that they forgo certain permissible exemptions and deductions available under Income Tax, or

Old Regime (Existing Rate of Tax)- To continue to pay taxes under the existing tax rates. The assessee can avail of rebates and exemptions by staying in the old regime and paying tax at a higher rate.

Latest Income Tax Slab As Per Old Tax Regime

Here we will discuss only Income Tax Slab as per Old Tax Regime for Individual and HUF assessee only.

Individual (Age below 60 years) and HUF Assessee Only

Income Tax slabIncome Tax rate for individual (Age below 60 years) & HUF
upto Rs. 2,50,000NIL- No Tax
Rs. 2,50,000 to Rs. 5,00,0005 % of total income exceeding Rs. 2,50,000
Rs. 5,00,001 to Rs. 10,00,000Rs. 12,500 + 20% of total income exceeding Rs. 5,00,000
Above Rs. 10,00,000Rs. 1,12,500 + 30% of total income exceeding Rs. 10,00,000

Also Read- Current Income Tax Slabs Rate As per New and Old Tax Regime and all other assessee

Income Tax Slab as per Old Tax Regime for Senior Citizen (Age 60 years to 80 years)

Income Tax slabRates
upto Rs. 3,00,000NIL- No Tax
Rs. 3,00,000 to Rs. 5,00,0005 % of total income exceeding Rs. 3,00,000
Rs. 5,00,001 to Rs. 10,00,000Rs. 10,000 + 20% of total income exceeding Rs. 5,00,000
Above Rs. 10,00,000Rs. 1,10,000 + 30% of total income exceeding Rs. 10,00,000

Income Tax Slab as per Old Tax Regime for Super Senior Citizen (Age above 80 years of age)

Income Tax slabRates
upto Rs. 5,00,000NIL- No Tax
Rs. 5,00,001 to Rs. 10,00,00020% of total income exceeding Rs. 5,00,000
Above Rs. 10,00,000Rs. 1,00,000 + 30% of total income exceeding Rs. 10,00,000

The following points are also applicable for Income Tax Slab as per Old Tax Regime

Note 1:- An additional 4% health & education cess will be applicable to the tax amount calculates as above.

Note 2:- A tax rebate under section 87A is allowed to individual taxpayers (Age below 60 years) for a maximum amount of Rs. 12,500 if the total income is up to Rs. 5,00,000. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less.

Note 3:- A tax rebate under section 87A is allowed to individual taxpayers (Age 60 or 60 + but below 80 years) for a maximum amount of Rs. 10,000 if the total income is up to Rs. 5,00,000. The amount of rebate shall be 100% of the Income Tax or Rs. 10,000 whichever is less.

Note 4:- The surcharge over the tax calculated will be charged (subject to marginal relief) as per the below table-

Income LimitSurcharge rate on amount of Income Tax
Net income exceed Rs. 50 Lakhs but does not exceed Rs. 1 Crore10%
Net Income exceed Rs. 1 Crore but does not exceed Rs. 2 Crore15%
Net Income exceed Rs. 2 Crore but does not exceed Rs. 5 Crore25%
Net Income exceed Rs. 5 Crore37%

Exemption and Deduction in Income Tax Slab as per Old Tax Regime

Deductions mean removing certain investments and expenditures, the taxpayers make and then calculating the gross total income. Exemptions mean the taxpayer is free from the tax burden on certain incomes.

The new tax regime does not allow the taxpayers to avail themselves of certain deductions and exemptions whereas the old tax regime provides that the taxpayers can claim deductions and exemptions which are available to them. Under the old tax regime, there are 100+ exemptions and deductions but taxpayers do not benefit from all of them. Most of them complicate the direct tax system.

Here are some important deductions and exemptions that are available in the old tax regime of income tax are given here-

Leave Travel Allowance
House Rent Allowance
Professional tax paid by a maximum of Rs. 2,500
Standard Deduction of Rs. 50,000 that was available for salaried individual
Section 80TTA/80TTB- Interest From Saving Account Deposits
Entertainment allowance deductions and professional tax for government employee
The option to carry forward or unabsorbed depreciation of earlier years
Option of additional depreciation under section 32 (ii) (a) of the Income Tax Act
Tax relief on interest paid on home loan for self-occupied or vacant property u/s 24
Deduction of Rs. 15,000 allowed from family pension under clause (iia) Section 57
Tax-saving investment deductions under Chapter VI-A (80C,80D, 80E,80CCC, 80CCD, 80D, 80DD, 80DDB,, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc) (Except, deduction under Section 80CCD(2)—employers contribution to NPS, and Section 80JJA) and so on. These popular tax saving investment options include ELSS, NPS, PPF, tax break on insurance premium among others.
Income Tax Slab as per Old Tax Regime

A total of 50 exemptions are retained in the new tax regime that is allowable in old and new tax regimes as well. Some important exemptions are here-

Income From Life Insurance
Agriculture Income
Standard Deduction on Rent
Retrenchment Compensation
Gratuity received from employer up to a maximum amount of Rs. 20 Lakh
Leave encashment on retirement
Interest and maturity amount of PPF of Sukanya Smriddhi Yojna
VRS proceeds up to Rs. 5 Lakh
Death cum retirement benefits
Money received for scholarships for education, etc.

Frequently Asked Questions- FAQs

  1. What is the new tax regime of 2020?

    Under union budget 2020, The Finance Minister introduced the “New Income Tax Slab” which is also called the “New Tax Regime”. As per the new tax regime, there is an option for individuals and HUF to pay tax at lower rates without claiming deductions under various sections.

    The New Income Tax Slab (New Tax Regime) was introduced vide section 115BAC, which is applicable to individual and HUF assessee only and allows them to pay tax at lower rates. Under the New Tax Regime, the taxpayer has an option to choose either of the following:

    1) To pay tax at lower rates as per the New Income Tax Slab (New regime) on the condition that they forego certain permissible exemptions and deductions available under Income Tax.
    2) To continue to pay taxes under the existing tax rates. The assessee can avail of rebates and exemption by staying in the Old regime and paying tax at the existing higher rate.

  2. What is the difference between the old and new tax regimes?

    The New Tax Regime was introduced vide section 115BAC, which is applicable to individual and HUF assessee only and allows them to pay tax at lower rates. Under the New Tax Regime, the taxpayer has an option to choose either of the following:

    1) To pay tax at lower rates as per the new regime on the condition that they forego certain permissible exemptions and deductions available under Income Tax.
    2) To continue to pay taxes under the existing tax rates. The assessee can avail of rebates and exemption by staying in the old regime and paying tax at the existing higher rate.

    As we discussed, the new tax regime is applicable only to Individual and HUF assessee, so here is the Difference between Old and New Tax Regime only for individual and HUF.

  3. How do you calculate tax on the new regime?

    The calculation of income tax under the new tax regime can be done using the following income tax slab rates applicable to individual taxpayers-

    🎯 up to Rs. 2,50,000 NIL ▶️ No Tax

    🎯 Rs. 2,50,001 to Rs. 5,00,000 ▶️ 5 % (Tax Rebate u/s 87a is available)

    🎯 Rs. 5,00,001 to Rs. 7,50,000 ▶️ 10%

    🎯 Rs. 7,50,001 to Rs. 10,00,000 ▶️ 15%

    🎯 Rs. 10,00,001 to Rs. 12,50,000 ▶️ 20%

    🎯 Rs. 12,50,001 to Rs. 15,00,000 ▶️ 25%

    🎯 Above Rs. 15,00,000 ▶️ 30%

    Note- The taxpayer opting for concessional rates in the New Tax Regime will have to forgo certain exemptions and deductions available in the existing old tax regime.

    Note 2:- A tax rebate under section 87A is allowed to individual taxpayers for a maximum amount of Rs. 12,500 if the total income is up to Rs. 5,00,000 for FY 2020-21. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less.

  4. What are the exemptions in the old tax regime?

    Leave Travel Allowance

    House Rent Allowance

    Professional tax paid by a maximum of Rs. 2,500

    Standard Deduction of Rs. 50,000 that was available for salaried individual

    Section 80TTA/80TTB- Interest From Saving Account Deposits

    Entertainment allowance deductions and professional tax for government employee

    The option to carry forward or unabsorbed depreciation of earlier years

    Option of additional depreciation under section 32 (ii) (a) of the Income Tax Act

    Tax relief on interest paid on home loan for self-occupied or vacant property u/s 24

    Deduction of Rs. 15,000 allowed from family pension under clause (iia) Section 57
    Tax-saving investment deductions under Chapter VI-A (80C,80D, 80E,80CCC, 80CCD, 80D, 80DD, 80DDB,, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc) (Except, deduction under Section 80CCD(2)—employers contribution to NPS, and Section 80JJA) and so on. These popular tax saving investment options include ELSS, NPS, PPF, tax break on insurance premium among others.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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