income-tax-slabs-rate-deductions

By | February 21, 2020

The budget for the year 2020-21 has been announced by Smt Nirmala Sitharaman. He has presented this budget in the Parliament on 31 January 2020. Never made such a budget before. In this, a new tax rate has been prescribed for taxpayers.

Income tax slab for ay 2020-21

  • No tax will be paid on income of Rs 5 lakh or more.
  • A person with an income between 5 lakh and 7.5 will have to pay 10% tax, which was 20% earlier.
  • A person with income between 6.5 lakh to 10 lakh will have to pay 15% tax, which was 30% earlier
  • A person with income between 10 lakh to 12.5 lakh will have to pay 20% tax, which was 30% earlier.
  • 12. A person with income up to 25% tax has to be paid which was 30% earlier
  • For a person with an income of 15 lakh or more, only 30% tax had to be paid, which is still the same.

The tax rate is fixed according to this table

IncomeTax Rate
0-5 LakhsNil
5-7.5 Lakhs 10 %
7.5-10 Lakhs 15 %
10-12.5 Lakhs 20 %
12.5-15 Lakhs 25 %
Above 15 Lakhs 30 %

Taxpayers will have to pay taxes according to the new tax rate. In this, taxpayers will have to leave some exemptions and deductions.-

Travel AllowanceConveyance
Relocation Allowance Children Education Allowance
Standard EducationInterest on Housing Loan (Under Section 24)
House Rent Allowance Daily Employment Courses Expenses
Helper AllowanceProfessional Taxes
Other Special Allowances [Section 10(14)]Chapter VI-A Deduction (80C, 80D, 80E) [Except Section 80CCD(2) & 80 JJA]

Some key points for taxpayers to remember when choosing a new tax payment process-

  • Once the option of tax system has been selected, it will not be able to be re-sucked (in case of business income).
  • If the tax takes the data back option, then once it is selected, it will not be able to change it.
  • This option is the option before the due date to be filled before the date 20-2021.

income tax rates 2020

Income tax rates have been discussed in three parts according to which taxpayers will have to pay tax. Three parts of the taxpayers viz-

  1. Individuals (Below the age of 60 years)
  2. Senior citizen (60-80 year old)
  3. Super Senior Citizens (Above the age of 80)
Individuals-
Income Tax Rate for Individuals (Below The Age of 60 Years)
0-2.5 Lakhs Nil
2.5-5 Lakhs 5%
5-10 Lakhs 20%
Above 10 Lakhs30%
Senior citizen-
Income Senior citizen (60-80 year old)
0-3 Lakhs Nil
3-5 Lakhs 5%
5-10 Lakhs 20%
Above 10 Lakhs 30%
Super Senior Citizens-
Income Super Senior Citizens (Above the age of 80)
0-5 Lakhs Nil
5-10 Lakhs 20%
Above 10 Lakhs 30%

Income tax deductions for ay 2020-21

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