Income tax slab rates are the rates defined under Income tax act and are mentioned in the Finance Act every year and based on which tax is paid by all the assessee’s every year.
The Income tax slab rates for different types of Assessee’s for FY 2020-21 i.e. year ending 31.03.2021 is as under:
Income Tax Slab Rate for resident Individual (i.e. men/women) below 60 Years of Age:
| Income Tax Slab | Income Tax Slab Rate |
| Income upto ₹ 2,50,000 | Nil |
| Income between ₹ 2,50,001 – ₹ 500,000 | 5% of Income exceeding ₹ 2,50,000 |
| Income between ₹ 500,001 – ₹ 10,00,000 | 20% of Income exceeding ₹ 5,00,000 |
| Income above ₹ 10,00,000 | 30% of Income exceeding ₹ 10,00,000 |
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.
15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.
25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.
37% of tax where total income exceeds Rs. 5 crore.
Health & Education cess: 4% of tax plus surcharge
Rebate u/s 87A is available for Rs. 12,500 if total income below Rs. 5,00,000/-.
This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A.
From the above mentioned financial year new optional slab rates have been announced by Income tax department under section 115BAC of the Income tax act wherein the individual will have to let go various exemptions and benefits. To read more about section 115BAC CLICK ME.
| Income tax slab | Income tax slab rate |
| Upto 2.5 lakh | Nil |
| From 2,50,001 to 5,00,000 | 5% of Income exceeding ₹ 2,50,000 |
| From Rs 5,00,001 to Rs 7,50,000 | 10% of Income exceeding ₹ 5,00,000 |
| From Rs 7,50,001 to Rs 10,00,000 | 15% of Income exceeding ₹ 7,50,000 |
| From Rs 10,00,001 to Rs 12,50,000 | 20% of Income exceeding ₹ 10,00,000 |
| From Rs 12,50,001 to Rs 15,00,000 | 25% of Income exceeding ₹ 12,50,000 |
| Above Rs 15,00,000 | 30% of Income exceeding ₹ 15,00,000 |
All the other conditions of surcharge and special tax rates remains the same.
Income Tax Slab Rate for Resident Senior Citizens (Age 60 years or more but less than 80 years)
| Income Tax Slab | Income Tax Slab Rate |
| Income upto ₹ 3,00,000 | Nil |
| Income between ₹ 3,00,001 – ₹ 500,000 | 5% of Income exceeding ₹ 3,00,000 |
| Income between ₹ 500,001 – ₹ 10,00,000 | 20% of Income exceeding ₹ 5,00,000 |
| Income above ₹ 10,00,000 | 30% of Income exceeding ₹ 10,00,000 |
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.
15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.
25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.
37% of tax where total income exceeds Rs. 5 crore.
Health & Education cess: 4% of tax plus surcharge
Rebate u/s 87A is available for Rs. 12,500 if total income below Rs. 5,00,000/-.
This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A
Income Tax Slab Rate for Resident Super Senior Citizens (Age 80 years or more)
| Income Tax Slab | Income Tax Slab Rate |
| Income upto ₹ 5,00,000 | Nil |
| Income between ₹ 500,001 – ₹ 10,00,000 | 20% of Income exceeding ₹ 5,00,000 |
| Income above ₹ 10,00,000 | 30% of Income exceeding ₹ 10,00,000 |
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.
15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.
25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.
37% of tax where total income exceeds Rs. 5 crore.
Health & Education cess: 4% of tax plus surcharge
This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A
Income Tax Slab Rate Hindu Undivided Families (HUF), Association of person, Body of individuals, Artificial Judicial Person, Non Resident Individual of any age:
| Income Tax Slab | Income Tax Slab Rate |
| Income upto ₹ 2,50,000 | Nil |
| Income between ₹ 2,50,001 – ₹ 500,000 | 5% of Income exceeding ₹ 2,50,000 |
| Income between ₹ 500,001 – ₹ 10,00,000 | 20% of Income exceeding ₹ 5,00,000 |
| Income above ₹ 10,00,000 | 30% of Income exceeding ₹ 10,00,000 |
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh.
15% of tax where total income exceeds Rs. 1 crore but does not exceed 2 crore.
25% of tax where total income exceeds Rs. 2 crore but does not exceed 5 crore.
37% of tax where total income exceeds Rs. 5 crore.
Health & Education cess: 4% of tax plus surcharge
All these persons are not eligible for Rebate u/s 87A as it’s available to only resident individuals.
This slab rate doesn’t applies to capital gain income or winning from lottery/ horse racing/ game etc except short term capital gain other than those covered under 111A
Income tax rate for Partnership Firms/ LLP:
Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%.
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
Health & Education cess: 4% of tax plus surcharge
Income tax rate for Local Authorities:
Local Authorities are to be taxed at the rate of 30%.
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
Health & Education cess: 4% of tax plus surcharge.
Income tax rate for Domestic Companies:
Domestic Companies are to be taxed at the rate of 30%. However, tax rate will be 25% if turnover or gross receipt of the company For F.Y. 2017-18 does not exceed Rs. 400 crores.
Plus:
Surcharge: 7% of tax where total income exceeds Rs. 1 Crore
12% of tax where total income exceeds Rs. 10 Crore
Health & Education cess: 4% of tax plus surcharge
Further for domestic companies there is one more option to opt for 22% tax rate under Section 115BAA wherein they need to let go various benefits and pay a compulsory surcharge of 10% and 4% cess which brings their effective tax rate to 25.168%.
There is one more tax rate for newly formed companies engaged in manufacturing under section 115BAB.
Income Tax Slab Rate of Co-operative Societies
| Income Tax Slab | Income Tax Slab Rate |
| Up to Rs.10,000 | 10% of Income |
| Rs.10,000 to Rs 20,000 | 20% of Income exceeding Rs. 10,000 |
| Over Rs. 20,000 | 30% of Income exceeding Rs. 20,000 |
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 Crore
Health & Education cess: 4% of tax plus surcharge
However, from this financial year co-operative societies will have an option to pay flat tax rate of 22% under section 115BAD which could be a great relief from their current highest tax rate of 30%.
Income tax slab rates for Companies other than Domestic Companies i.e. Foreign companies:
Foreign Companies are to be taxed at the rate of 40%.
Plus:
Surcharge: 2% of tax where total income exceeds Rs. 1 Crore
5% of tax where total income exceeds Rs. 10 Crore
Health & Education cess: 4% of tax plus surcharge.
The above mentioned income tax rates will be used when you file your income tax return for AY 2021-22 or FY 2020-21.
You can book phone consultation/ assistance online with expert as mentioned below:
To book ITR filing with experts CLICK ME.
To book phone consultation with experts for Income tax CLICK ME.
To book consultation for Faceless Assessment with experts CLICK ME.
To book phone consultation with experts for GST CLICK ME.
Comments 1