Income Tax is levied on the income earned by all the individuals, HUF, partnership firms, LLPs, and corporate as per the Income Tax Act of India. In the case of individuals, tax is levied as per the slab system if their income is above the minimum threshold limit. Here in this article, we will know about the current Income Tax Slab for individual assessee.
Meaning of Income Tax Slabs
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.
Latest Income Tax Slab For Individual
As we discussed above that, the Indian Income Tax Act levies the tax on individual taxpayers on the basis of a slab system. This type of taxation enables a progressive and fair system in the country. These slab rates are different for different categories of taxpayers. Indian income tax slab classify three categories of” individual” taxpayers such as-
1. Individual aged less than of 60 years including resident and non resident assessee.
2. Resident senior citizens 60 to 80 years of age.
3. Resident super senior citizens aged more than 80 years.
As per the budget 2020, 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. It is to be noted that the tax rate in the new tax regime is the same for all categories of individuals and HUF. Hence no increased basic exemption limit benefit will be available to senior and super senior citizens.
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.
Here you find the chart of income tax slab for AY 2021-22 for Individual assessee as per both new and old regimes.
New Regime- Latest Income Tax Slab For Individual For AY 2021-22
Here is the applicable latest income tax slab for individual assessee for assessment year 2021-22 as per the New Tax Regime-
| Income Tax slab | Income Tax Rate for All individuals and HUF- New Scheme |
|---|---|
| upto 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 1- 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 AY 2021-22. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (New Regime)
Old Regime- Latest Income Tax Slab For Individual For AY 2021-22
Here is the applicable latest income tax slab for individual assessee for assessment year 2021-22 as per the Old Tax Regime-
| Income Tax Slab For Individual | Income Tax Rates For Individual (Age below 60 years) |
|---|---|
| upto Rs. 2,50,000 | NIL- No Tax |
| Rs. 2,50,000 to Rs. 5,00,000 | 5 % of total income exceeding Rs. 2,50,000 |
| Rs. 5,00,001 to Rs. 10,00,000 | Rs. 12,500 + 20% of total income exceeding Rs. 5,00,000 |
| Above Rs. 10,00,000 | Rs. 1,12,500 + 30% of total income exceeding Rs. 10,00,000 |
Income Tax rates for Senior Citizen (Age 60 years to 80 years)
| Income Tax Slab For Individual | Income Tax Rates For Individual – Senior Citizen |
|---|---|
| upto Rs. 3,00,000 | NIL- No Tax |
| Rs. 3,00,000 to Rs. 5,00,000 | 5 % of total income exceeding Rs. 3,00,000 |
| Rs. 5,00,001 to Rs. 10,00,000 | Rs. 10,000 + 20% of total income exceeding Rs. 5,00,000 |
| Above Rs. 10,00,000 | Rs. 1,10,000 + 30% of total income exceeding Rs. 10,00,000 |
Must Read- Old vs New: Choose between Old Tax Regime and New Tax Regime of the Income Tax Act
Income Tax rates for Super Senior Citizen (Age above 80 years of age)
| Income Tax Slab For Individual | Income Tax Rates For Individual – Super Senior Citizen |
|---|---|
| upto Rs. 5,00,000 | NIL- No Tax |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% of total income exceeding Rs. 5,00,000 |
| Above Rs. 10,00,000 | Rs. 1,00,000 + 30% of total income exceeding Rs. 10,00,000 |
The following points are also applicable-
Note 1:- An additional 4% health & education cess will be applicable to the tax amount calculates as above. (Both Regime)
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 for AY 2021-22. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (Old Regime)
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 for AY 2021-22. The amount of rebate shall be 100% of the Income Tax or Rs. 10,000 whichever is less. (Old Regime)
Note 4:- The surcharge over the tax calculated will be charged (subject to marginal relief) as per the below table- (Both Regime)
| Income Limit | Surcharge rate on amount of Income Tax |
|---|---|
| Net income exceed Rs. 50 Lakhs but does not exceed Rs. 1 Crore | 10% |
| Net Income exceed Rs. 1 Crore but does not exceed Rs. 2 Crore | 15% |
| Net Income exceed Rs. 2 Crore but does not exceed Rs. 5 Crore | 25% |
| Net Income exceed Rs. 5 Crore | 37% |
How to choose between the new tax regime and the old tax regime
Salaried Person- For this purpose, a salaried person is free to opt-in or opt-out every year. He is only required to intimate his employer about his choice and the employer has to deduct TDS according to the employee choice.
Non-Salaried Person- A non-salaried person, has to make his choice at the time of filing his return. They are not required to intimate anyone during the year. However, a non-salaried taxpayer has no option to change his choice every year. It means once a non-salaried person opt-out of the new tax regime, they can not opt-in again for the new tax regime in the future.
***For tax planning purposes, a taxpayer needs to make a comparison between old and new tax regimes according to his estimated income of that financial year. Once the taxpayer chooses the right tax regime, the investment TDS or advance tax payable calculation are made accordingly.
Frequently Asked Questions- FAQs
What is the tax slab for 2020-21?
As per the new tax regime for FY 2020-21 following income tax slab is applicable for all individuals and HUF assessees-
🎯 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:- Income Tax Slab For Individual provides for rebate under section 87A to all 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. (New Regime)
What is the tax slab in India 2020-21?
As per the new tax regime for FY 2020-21 following income tax slab is applicable for all individuals and HUF assessees-
🎯 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:- Income Tax Slab For Individual provides for rebate under section 87A to all 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. (New Regime)
What is the tax slab for 2019 2020?
Income Tax Slab For Individual For 2019-20 (Age below 60 years) and HUF
🎯 upto Rs. 2,50,000 ▶️ NIL (No Tax)
🎯 Rs. 2,50,000 to Rs. 5,00,000 ▶️ 5 % of total income exceeding Rs. 2,50,000
🎯 Rs. 5,00,001 to Rs. 10,00,000 ▶️ Rs. 12,500 + 20% of total income exceeding Rs. 5,00,000
🎯 Above Rs. 10,00,000 ▶️ Rs. 1,12,500 + 30% of total income exceeding Rs. 10,00,000
What is the New Income Tax Slab For 2021-22?
As per the new tax regime for FY 2021-22 following income tax slab is applicable for individual and HUF assessee-
🎯 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 2021-22. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (New Regime)
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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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