What is the Income Tax Slab Rate for AY 2020-21?

Taxpayers in India are categorised under three heads: resident individuals under 60 years of age, resident individuals between 60 and 80 years of age, and resident individuals above 80 years of age. The rate at which income tax is charged to an individual depends on the category under which he/she falls. Here are the income tax slabs for all three categories of taxpayers. 

Income Tax Slabs for AY 2020-21 or FY 2019-20 

Here is the income tax slab for resident individuals who are under 60 years of age:  

Taxable Income  Income Tax Rate 
Up to Rs.2.5 lakh   Nil  
Rs.2.5 lakh to Rs.5 lakh   5% of the total income minus Rs.2.5 lakh + cess at 4%  
Rs.5 lakh to Rs.10 lakh   Rs.12,500 + 20% of the total income minus Rs.5 lakh + cess at 4%  
Above Rs.10 lakh   Rs.1,12,500 +30% of the total income minus Rs.10 lakh + cess at 4%  

Here is the income tax slab for resident individuals who are between 60 and 80 years old   

Taxable Income  Income Tax Rate 
Up to Rs.2.5 lakh   Nil  
Rs.2.5 lakh to Rs.5 lakh   5% of the total income minus Rs.3 lakh + cess at 4%  
Rs.5 lakh to Rs.10 lakh   Rs.10,000 + 20% of the total income minus Rs.5 lakh + cess at 4%  
Above Rs.10 lakh   Rs.1,10,500 +30% of the total income minus Rs.10 lakh + cess at 4%  

Here is the income tax slab for resident individuals who are over 80 years of age  

Taxable Income  Income Tax Rate 
Up to Rs.5 lakh   Nil  
Rs.5 lakh to Rs.10 lakh   20% of the total income minus Rs.5 lakh + cess at 4%  
Above Rs.10 lakh   Rs.1 lakh +30% of the total income minus Rs.10 lakh + cess at 4%  

 Examples of Calculation of Income Tax 

Here are examples for each category of taxpayer and how their income tax will be calculated: 

Example 1: Calculation of income tax for an individual below 60 years of age 

Let’s say that Ajay, a 26-year-old marketing associate in a start-up draws an annual income of Rs.6 lakh p.a. Since he falls in the first category of taxpayers, this is what the calculation of his tax liability will look like:  

Taxable Income  Income Tax Rate  Taxable Amount 
Up to Rs.2.5 lakh   Nil   Nil 
Rs.2.5 lakh to Rs.5 lakh   5% of the total income minus Rs.2.5 lakh + cess at 4%   Rs.12,500 + Rs.500 (cess) 
Rs.5 lakh to Rs.10 lakh   Rs.12,500 + 20% of the total income minus Rs.5 lakh + cess at 4%   Rs.12,500 + Rs.20,000 + Rs.1,300 (cess) 
Above Rs.10 lakh   Rs.1,12,500 +30% of the total income minus Rs.10 lakh + cess at 4%   Nil 

Assuming that Ajay has not made any investments that qualify for tax deductions, the income tax charged to him for AY 2020-21 will be Rs.12,500 + Rs.20,000 + Rs.1,300 = Rs.33,800.  

Example 2: Calculation of income tax for an individual between 60 and 80 years of age 

Let’s say that Mrs. Devi, 62-year-old retired teacher who now takes tuitions for school children earns an annual income of Rs.6.2 lakh p.a. Since she falls in the second category of taxpayers, the calculation of her tax liability will be as follows:  

Taxable Income  Income Tax Rate  Taxable Amount 
Up to Rs.3 lakh   Nil   Nil 
Rs.3 lakh to Rs.5 lakh   5% of the total income minus Rs.3 lakh + cess at 4%   Rs.10,000 + Rs.400 (cess) 
Rs.5 lakh to Rs.10 lakh   Rs.10,000 + 20% of the total income minus Rs.5 lakh + cess at 4%   Rs.10,000 + Rs.24,000 + Rs.1,360 (cess) 
Above Rs.10 lakh   Rs.1,10,500 +30% of the total income minus Rs.10 lakh + cess at 4%    

 Assuming that Mrs. Devi has not made any investments that qualify for tax deduction, her tax liability for FY 2019-20, as seen above, is Rs.35,360  

Example 3: Calculation of income tax for an individual who is above 80 years of age 

Let’s say that Mr. Sharma, an 84-year-old retired journalist, earns an income of Rs.8 lakh p.a. by way of rent. Since he falls in the third category of taxpayers, the calculation of his tax liability is as follows:  

Taxable Income  Income Tax Rate  Taxable Amount 
Up to Rs.5 lakh   Nil   Nil 
Rs.5 lakh to Rs.10 lakh   20% of the total income minus Rs.5 lakh + cess at 4%   Rs.60,000 + Rs.2,400 (cess) 
Above Rs.10 lakh   Rs.1 lakh +30% of the total income minus Rs.10 lakh + cess at 4%   Nil 

In case Mr. Sharma has not made any investments that qualify for tax deductions, his taxable income for AY 2020-21 will be Rs.62,400

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