Income-Tax-Slabs

Income Tax Slabs – Assessment Year 2020-21

Income Tax Slabs – Assessment Year 2020-21

In India, the range of income amongst its citizens is diverse. Therefore, a single tax rate cannot be applicable to every taxpayer. For this purpose, taxpayers are identified in different groups based on their incomes. These groups are called as Tax Slabs. Each group is charged with tax at appropriate varying rates. Every year, Income Tax Rates are revised along with the Budget. The following are the Income Tax Slabs for various taxpayers for the Financial Year 2019-20/ Assessment Year 2020-21.

Note: A financial year starts from the 1st of April of a particular year and ends on the 31st of March of the following year. For example, the financial year 2019–20 would be from the 1st of April, 2019 to the 31st of March, 2020. The Assessment Year is the year following immediately after the financial year wherein the income of that financial year is assessed. Hence, in the Assessment Year 2020–21, the income tax for the period from the 1st of April, 2019 to the 31st of March, 2020 would be assessed.

Individual Tax Payers

There are three groups of individual taxpayers:

  • Group 1: Individuals below the age of 60 years. This would comprise of Resident Indians and Non-Resident Indians.
  • Group 2: Resident Senior Citizens who are 60 years and above but less than 80 years of age.
  • Group 3: Resident Super Senior Citizens who are above the age of 80  years.

Income Tax Slab for Individuals – FY 2019-20/ AY 2020-21

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 2,50,000NilNil
INR 2,50,001 to INR 5,00,0005% of total income exceeding INR 2.5 Lakhs4%
INR 5,00,001 to INR 10,00,000INR 12,500 + 20% of the total income exceeding INR 5 Lakhs4%
Above INR 10,00,000INR 1,12,500 + 30% of total income exceeding INR 10 Lakhs4%

Income Tax Slab for Senior Citizens

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 3,00,000NilNil
INR 3,00,001 to INR 5,00,0005%4%
INR 5,00,001 to INR 10,00,00020%4%
Above INR 10,00,00030%4%

Income Tax Slab for Super Senior Citizens

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 5,00,000NilNil
INR 5,00,001 to INR 10,00,00020%4%
Above INR 10,00,00030%4%

Surcharge for all Individual Groups

When an individual’s income exceeds INR 50 Lakhs but is less than INR 1 Crore, the surcharge applicable is at a rate of 10% of the income tax. When an individual’s income exceeds INR 1 Crore, a surcharge of 15% is applicable to the income tax.

NOTE: Rebate under Section 87A

The Interim Budget 2019 has offered provisions for a total tax rebate for individuals who have a net taxable income up to INR 5 Lakhs. This means that the maximum tax rebate provided under Section 87A has been increased from INR 2,500 to INR 12,500. However, individuals who have net taxable income up to INR 5 Lakhs may claim tax rebate under Section 87A and thus, effectively pay no tax at all.

Non-Resident Individuals

The following are the Income Tax Slabs and Rates for Non-Resident Indians (NRIs).

Income Tax Slab for Non-Resident Individuals (NRI) for FY 2019-20/ AY 2020-21

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 2,50,000NilNil
INR 2,50,001 to INR 5,00,0005% of total income exceeding INR 2.5 Lakhs4%
INR 5,00,001 to INR 10,00,000INR 12,500 + 20% of the total income exceeding INR 5 Lakhs4%
Above INR 10,00,000INR 1,12,500 + 30% of total income exceeding INR 10 Lakhs4%

Surcharge for Non-Resident Indians

When an NRI’s income exceeds INR 50 Lakhs but is less than INR 1 Crore, the surcharge applicable is at a rate of 10% of the income tax. When an individual’s income exceeds INR 1 Crore, a surcharge of 15% is applicable to the income tax.

NOTE: Rebate not applicable

It should be noted that Rebate under Section 87A as seen in Resident Individual Income Tax Slabs will not be applicable to Non-Resident Indians.

Hindu Undivided Family (HUF)

The following are the Income Tax Slabs and Rates for Hindu Undivided Families (HUFs).

Income Tax Slab for Hindu Undivided Family for FY 2019-20/ AY 2020-21

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 2,50,000NilNil
INR 2,50,001 to INR 5,00,0005% of total income exceeding INR 2.5 Lakhs4%
INR 5,00,001 to INR 10,00,000INR 12,500 + 20% of the total income exceeding INR 5 Lakhs4%
Above INR 10,00,000INR 1,12,500 + 30% of total income exceeding INR 10 Lakhs4%

Surcharge for Hindu Undivided Families

When a HUF’s income exceeds INR 50 Lakhs but is less than INR 1 Crore, the surcharge applicable is at a rate of 10% of the income tax. When a HUF’s income exceeds INR 1 Crore, a surcharge of 15% is applicable on income tax on the amount exceeding INR 1 Crore.

Partnership Firms and Limited Liability Partnerships

The following are the Income Tax Slabs and Rates for Partnership Firms and Limited Liability Partnerships.

Income Tax Slab for Partnership Firms and Limited Liability Partnerships for FY 2019-20/ AY 2020-21

Entity

Income Tax Rate

Health and Education Cess

Partnership Firms and Limited Liability PartnershipsTaxable at a flat rate of 30%4%

Surcharge for Partnership Firms and Limited Liability Partnerships

When the income of a Partnership Firm and Limited Liability Partnership exceeds INR 1 Crore, a surcharge of 12% is applicable on income tax on the amount exceeding INR 1 Crore.

Indian Companies

The following are the Income Tax Slabs and Rates for Indian Companies.

Income Tax Slab for Indian Companies for FY 2019-20/ AY 2020-21

Turnover

Income Tax Rate

Health and Education Cess

Up to INR 250 Crores in terms of Gross Turnover for the previous year25%4%
Exceeds INR 250 Crores in terms of Gross Turnover for the previous year30%4%

Surcharge for Indian Company

When the total income of an Indian Company exceeds INR 1 Crore but is less than INR 10 Crore, the surcharge applicable is at a rate of 7% of the income tax. When the total income of an Indian Company exceeds INR 10 Crore, the surcharge applicable is at a rate of 12% of the income tax.

Foreign Companies

The following are the Income Tax Slabs and Rates for Foreign Companies.

Income Tax Slab for Foreign Companies for FY 2019-20/ AY 2020-21

Entity

Income Tax Rate

Health and Education Cess

Foreign CompaniesTaxable at a flat rate of 40%4%

Surcharge for Foreign Company

When the total income of a Foreign Company exceeds INR 1 Crore but is less than INR 10 Crore, the surcharge applicable is at a rate of 2% of the income tax. When the total income of a Foreign Company exceeds INR 10 Crore, the surcharge applicable is at a rate of 5% of the income tax.

Local Authorities

The following are the Income Tax Slabs and Rates for Local Authorities.

Income Tax Slab for Local Authorities for FY 2019-20/ AY 2020-21

Entity

Income Tax Rate

Health and Education Cess

Local AuthoritiesTaxable at a flat rate of 30%4%

Surcharge for Local Authorities

When the income of Local Authorities exceeds INR 1 Crore, a surcharge of 12% is applicable to the income tax.

Cooperative Societies

The following are the Income Tax Slabs and Rates for Cooperative Societies.

Income Tax Slab for Cooperative Societies for FY 2019-20/ AY 2020-21

Income Tax Slabs

Income Tax Rate

Health and Education Cess

Up to INR 10,00010%4%
INR 10,001 to INR 20,00020%4%
Above INR 20,00030%4%

Surcharge for Cooperative Societies

When the income of Cooperative Societies exceeds INR 1 Crore, a surcharge of 12% is applicable to the income tax.

Association of Person (AOP)

The following are the Income Tax Slabs and Rates for Association of Person(AOP).

Income Tax Slab for Association of Person(AOP) for FY 2019-20/ AY 2020-21

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 2,50,000NilNil
INR 2,50,001 to INR 5,00,0005%4%
INR 5,00,001 to INR 10,00,00020%4%
Above INR 10,00,00030%4%

Surcharge for Association of Person (AOP)

When the income of Association of Persons (AOP) exceeds INR 50 Lakhs but is less than INR 1 Crore, the surcharge applicable is at a rate of 10% of the income tax. When the income of AOP exceeds INR 1 Crore, a surcharge of 15% is applicable to the income tax.

Artificial Judicial Person (AJP)

The following are the Income Tax Slabs and Rates for Artificial Judicial Person (AJP).

Income Tax Slab for Artificial Judicial Person (AJP) for FY 2019-20/ AY 2020-21

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 2,50,000NilNil
INR 2,50,001 to INR 5,00,0005%4%
INR 5,00,001 to INR 10,00,00020%4%
Above INR 10,00,00030%4%

Surcharge for Artificial Judicial Person (AJP)

When the income of an Artificial Judicial Person (AJP) exceeds INR 50 Lakhs but is less than INR 1 Crore, the surcharge applicable is at a rate of 10% of the income tax. When the income of an AJP exceeds INR 1 Crore, a surcharge of 15% is applicable to the income tax.

Body of Individuals (BOI)

The following are the Income Tax Slabs and Rates for Body of Individuals (BOI).

Income Tax Slab for Body of Individuals (BOI) for FY 2019-20/ AY 2020-21

Income Tax SlabsIncome Tax RateHealth and Education Cess
Up to INR 2,50,000NilNil
INR 2,50,001 to INR 5,00,0005%4%
INR 5,00,001 to INR 10,00,00020%4%
Above INR 10,00,00030%4%

Surcharge for Body of Individuals (BOI)

When a Body of Individual’s income exceeds INR 50 Lakhs but is less than INR 1 Crore, the surcharge applicable is at a rate of 10% of the income tax. When the BOI’s income exceeds INR 1 Crore, a surcharge of 15% is applicable to the income tax.

Latest Update on 26th June 2019

As per the latest notification from the Income Tax Department, taxpayers are advised to take a note of the following points:

  • Already saved draft data will not be available in case of Online ITR 1 & 4
  • In case of Offline utilities, XML has to be re-generated using the latest Income Tax Return Preparation Software

Post by Chris John

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