Normal Income Tax Slabs/ Rates for Resident Individuals (FY 2020-21/ AY 2021-22)

New tax regime has been introduced by the Finance Act, 2020, however, the tax rates/ slabs, Education Cess, Surcharge, Basic Exemption Limit of Rs. 5 lacs, etc. applicable for FY 2019-20/ AY 2020-21 have remained the same for FY 2020-21/ AY 2021-22 under the existing tax regime anyways.

Normal Income Tax Slabs or  Rates applicable for Resident Individuals (including for Women Assessees) in respect of FY 2020-21/ AY 2021-22, as per the Finance Act, 2020, under the existing tax regime, are as under:

A. Resident Individual of Age 80 Years or more (Very/ Super Senior Citizens)

These income tax rates are applicable to very/ super senior citizen resident individuals of age 80 years or above.

Net Income Range/ SlabsIncome Tax Rates
Upto Rs. 5 LacsNil
Above Rs. 5 Lacs but upto Rs. 10 Lacs20%
Above Rs. 10 Lacs30% plus Rs. 1,00,000

B. Resident Individual of Age 60 Years or more but less than 80 years (Senior Citizens)

These income tax rates are applicable to senior citizen resident individuals of age above 60 years but below 80 years.

Net Income Range/ SlabsIncome Tax Rates
Upto Rs. 3 LacsNil
Above Rs. 3 Lacs but upto Rs. 5 Lacs5%
Above Rs. 5 Lacs but upto Rs. 10 Lacs20% plus Rs. 10,000
Above Rs. 10 Lacs30% plus Rs. 1,10,000

C. Resident Individuals of Age below 60 Years:

These income tax rates are applicable to resident individuals of age below 60 years. Besides, these rates are applicable for non-resident individuals (NRIs) of all age groups, HUFs, AOPs, BOIs and AJPs.

Net Income Range/ SlabsIncome Tax Rates
Upto Rs. 2.5 LacsNil
Above Rs. 2.5 Lacs but upto Rs. 5 Lacs5%
Above Rs. 5 Lacs but upto Rs. 10 Lacs20% plus Rs. 12,500
Above Rs. 10 Lacs30% plus Rs. 1,12,500

Note:

1. Income Tax Rates for resident individuals in each slab, as mentioned above, are inclusive of income tax liability upto previous slab(s). To arrive at total income tax liability, Health & Education Cess and Surcharge are to be applied, as under:

i) Health & Education Cess @ 4% in all cases; and

ii) Surcharge @ 10%/ 15%/ 25%/ 37% applicable in cases where total income exceeds Rs. 50 Lacs/ Rs. 1 crore/ Rs. 2 crore/ Rs/ 5 crore respectively, subject to provisions relating to marginal relief, if applicable.

2. Resident individuals having taxable income upto Rs. 5,00,000 can claim tax rebate of upto Rs. 12,500 u/s 87A of Income Tax Act, 1961, in respect of FY 2020-21/ Ay 2021-22.

3. In the case of non-corporate taxpayers under provisions of Alternate Minimum Tax (AMT), minimum tax payable shall be 18.5% (+HEC) of “adjusted total income” computed u/s 115JC except in the case of units located in an IFSC deriving income solely in convertible foreign exchange, which shall be subjected to AMT u/s 115JF at the rate of 9% only.

It may be noted that above rates are normal tax rates which are applicable to normal income of resident individuals depending on their age. However, in the case of special incomes like long term capital gains, winnings from lottery, etc., special rates of Income Tax are applicable.

Further, the tax rates applicable in the case of resident individuals of age upto 60 shall be applicable to the non-resident individuals, i.e. the tax rates remain the same irrespective of the age of the non-resident individual concerned.

Completion of Age of 60/ 80 for Senior/ Very Senior Citizen Status Benefit under Income Tax

Related Posts:

Income Tax Slabs/ Rates:Income Tax Cess, Surcharge & Rebate
Resident IndividualsEducation Cess Rates
NRIs/ HUFs/ AOP/ BOI/ AJPSurcharge Rates
Partnership Firms and LLPsMarginal Relief from Surcharge
Domestic CompaniesRebate u/s 87A for Individuals
Foreign Companies 
Co-operative Societies 
Local Authorities 

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