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Income Tax Rates for Financial Year 2019-20
(Assessment Year 2020-21)


Tax Rates for individuals for the Assessment Year 2021-22 (financial year 2020-21)


Before applying the tax rates to calculate tax liability, one must check that deduction u/s 80C for tax saving investments upto Rs. 150000, interest on house loan benefit upto Rs. 200000(on property), Rs. 50000 additional deduction for investments in NPS u/s 80CCD and deduction of savings bank interest u/s 80TTA upto Rs. 10000 must be considered.

Budget 2019 has taken good care of small taxpayers by offering no tax till income of Rs. 500000. So those having income upto Rs. 5,00,000 need not pay any tax.

Income Tax Rates applicable for the financial year 2019-20 (Assessment Year 2020-21) to different age groups of resident individuals:

  • For Individuals both male and female(other than senior citizens and super senior citizens):


Total Income

Tax Rate
upto Rs. 2,50,000/- Nil
above Rs. 2,50,000/- upto Rs. 5,00,000/- 5% of income above Rs. 2,50,000/-
above Rs. 5,00,000/- upto Rs. 10,00,000/- Rs. 12,500/- + 20% of income above Rs. 5,00,000/-
above Rs. 10,00,000/- Rs. 1,12,500/- + 30% of income above Rs. 10,00,000/-

*Budget 2019 has increased the Tax rebate u/s 87A of 100% tax upto max Rs. 12500/- available only to people with income upto Rs. 5,00,000/-
*10% surcharge will be applicable if income is in the range of Rs. 50 lacs to 1 crore
*15% surcharge will be applicable for incomes above Rs. 1 crore.
*4% Health & Education Cess will also be applicable on total tax & surcharge (if any) calculated


   
  • For Senior Citizens ( individuals above the age of 60 years but less then 80 years of age):

Total Income 
Tax Rate

upto Rs. 3,00,000/- Nil
above Rs. 3,00,000/- but upto Rs. 5,00,000/- 5% of income above Rs. 3,00,000/-
above Rs. 5,00,000/- but upto Rs. 10,00,000/- Rs. 10,000/- + 20% of income above Rs. 5,00,000/-
above Rs. 10,00,000/- Rs. 1,10,000/- + 30% of income above Rs. 10,00,000/-

*Budget 2019 has increased the Tax rebate u/s 87A of 100% tax upto max Rs. 12500/- available only to people with income upto Rs. 5,00,000/-
*10% surcharge will be applicable if income is in the range of Rs. 50 lacs to 1 crore
*15% surcharge will be applicable for incomes above Rs. 1 crore.
*4% Health & Education Cess will also be applicable on total tax & surcharge (if any) calculated


  • For Super Senior Citizens (individuals above the age of 80 years):


Total Income

Tax Rate
upto Rs. 5,00,000/- Nil
above Rs. 5,00,000/- but upto Rs. 10,00,000/- 20% of income above Rs. 5,00,000/-
above Rs. 10,00,000/- Rs. 1,00,000/- + 30% of income above Rs. 10,00,000/-

*10% surcharge will be applicable if income is in the range of Rs. 50 lacs to 1 crore
*15% surcharge will be applicable for incomes above Rs. 1 crore.
*4% Health & Education Cess will also be applicable on total tax & surcharge (if any) calculated



Tax Rates for individuals for the Assessment Year 2021-22 (financial year 2020-21)

Which Tax Regime to Choose?? New Vs. Old Tax Regime applicable from AY 2021-22

Understand the terms Financial Year and Assessment Year

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