• Home
  • Registrations
    • GST Registration
    • GST Registration For Foreigners
    • MSME Registration
    • TAN Registration
    • Digital Signature
    • Import export Code
  • Business Setup
    • Proprietorship
    • Partnership
    • Limited Liability Partnership
    • Private Limited Company
    • Public Limited Company
    • One Person Company
  • Services
    • Accounting Services
    • GST Return
    • GST Services
    • Company or Firm Registration
    • Trademark, Logo Registration
    • Income Tax Return
  • Upload Documents
  • Blog
  • Contact Us

+91-9719586772
  info@sktaxlawfirm.com

New Income Tax Slabs for Financial Year (FY 2020-2021)

tax
Feb 7, 2020 Income Tax 1 Comment

New Income Tax Slabs for Financial Year (FY 2020-2021): The 2020 Interim Budget was offered on 1 Feb 2020 by the Honourable Finance Minister Nirmala Sitharaman. The biggest announcement in this budget is the rebate of Rs.12,500 which has been announced for taxpayers who have a taxable income of up to Rs.5 lakh.

Income Tax Slab Tax Rate
Up to Rs.2.5 lakh Nil
From Rs.2,50,001 to Rs.5,00,000 5% of the total income that is more than Rs.2.5 lakh + 4% cess
From Rs.5,00,001 to Rs.7,50,000 10% of the total income that is more than Rs.5 lakh + 4% cess
From Rs.7,50,001 to Rs.10,00,000 15% of the total income that is more than Rs.7.5 lakh + 4% cess
From Rs.10,00,001 to Rs.12,50,000 20% of the total income that is more than Rs.10 lakh + 4% cess
From Rs.12,50,001 to Rs.15,00,000 25% of the total income that is more than Rs.12.5 lakh + 4% cess
Income above Rs.15,00,001 30% of the total income that is more than Rs.15 lakh + 4% cess

Income tax slabs and rates for the FY 2019-20 and AY 2020-2021

There are 3 different classes of individual taxpayers and 1 for domestic companies.

  1. Individuals and Hindu Undivided Family (HUF) less than 60 years old
  2. Senior Citizens who are 60 years old or more, but less than 80 years old
  3. Senior Citizens who are 80 years old or more
  4. Domestic Companies
    Income Tax Slab for Individuals less than 60 years of age (For Male & Female both)
    Net Income Slab (Gross Taxable Income – deductions) Income Tax Rate Surcharge Health & Education Cess Rebate u/s 87A  (FY 2019-20)
    Upto 2,50,000 Nil Nil Nil Nil
    From 2,50,001- 5,00,000 0.05 Nil 4% For income upto Rs 5 lakhs Tax Rebate upto  Rs 12,500
    From 5,00,001-10,00,000 12,500 + 20% Nil 4% Nil
    From 10,00,001-50,00,000 1,12,500/- + 30% Nil 4% Nil
    From 50,00,001-1,00,00,000 13,12,500 + 30% 10% 4% Nil
    Above 1,00,00,000 but upto 2,00,00,000 28,12,500 + 30% 15% 4% Nil
    Above 2,00,00,000 but upto 5,00,00,000 58,12,500 + 30% 25% 4% Nil
    Above 5,00,00,000 1,48,12,500 + 30% 37% 4% Nil

    What are the changes in new Income tax slab rates for F.Y. 2019-20(A.Y. 2020-21)?

    1- Yes you have heard correct! No Income Tax would be levied on the income up to Rs. 5 Lakh as the limit of Rebate u/s 87A has been increased from Rs.3.5 Lakhs to Rs.5 Lakhs. Which means Tax liability is there but has been Exempted under section 87A which provides exemption on tax payment to a RESIDENT INDIVIDUAL.

    2- Standard deduction also increased from Rs 40 Thousand to Rs 50 Thousand for salaried class and pensioners.

    3- Those companies whose turnover does not exceed INR 400 crore is liable to 25% tax rate and above 400 crore turnover 30% tax.

    Q- What does Income Tax slabs mean ?

    Ans: Income tax is charged on the basis of the income of individuals  which is known as income tax slab.

     Q- Whether income tax slab applied after deduction or before deductions?

    Ans: Income Tax is levied on income after deduction.

    Q- Is income tax levied before reducing standard deduction from the income?

    Ans: No! It is calculated after Standard Deduction.

    If you need any help to file your Income Tax return, contact us on 9719586772 or drop an email on info@sktaxlawfirm.com. Our professional team will help you to calculate your TAX properly and will guide you how you can save your tax with proper deductions as per Government regulations. We at SK Law firm always provide experts Advice for your Income Tax Return (ITR). If you are looking Income Tax Agent or consultant, you are at right place. We provide a wide range of Services which can help you to improve your business and you can get all services under one roof.

tax

GST rate on consultancy services and its various slabsPrevious post
Who all are eligible for the GST registrationNext post

Leave your comment Cancel reply

One comment on “New Income Tax Slabs for Financial Year (FY 2020-2021)”

  1. Pingback:Online ITR Filing in Chennai, Income Tax Return in Chennai 9719586772

Inquire Now




 

 

Recent Posts

  • What is Dropshipping Business
  • What is the Trade License Registration
  • What is 80G Registration
  • What is 15 CA and 15 CB
  • How to Become Online Seller on Voonik

Categories

  • Accounting Services
  • Digital Signature
  • Firm or Company
  • GST
  • Income Tax
  • Other Services

Quick Links

  • Use Full Links
  • Our Blog
  • Sk Tax Law Firm
  • Contact Us
  • Terms & Conditions
  • Refund and Cancellation Policy
  • Privacy Policy

About Us

We provide a wide range of services, in taxation like Goods & Service Tax (GST), income tax services, company formation, company registration, Management Audits, Internal Audits, Statutory Audits, Taxation law firm in Delhi NCR, GST Return best business taxation lawyer in India, Accounting Services and other statutory compliances. Our team is well managed by an experienced team of certified professionals…..

Payment Options

Quick Contact

Call : +91-9719586772

E-mail : info@sktaxlawfirm.com

Follow Us

facebooktwittergoogle plus

©2017-20 - SK Tax Law Firm | Rated 4.9/5 4.9 Rating based on Google Plus reviews and rating.Click to find » SK Tax Law Firm

Call Now Button
WhatsApp WhatsApp us