income-tax-slabs-rate-deductions

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

Income Tax Rate
0-5 Lakhs Nil
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 Allowance Conveyance
Relocation Allowance Children Education Allowance
Standard Education Interest on Housing Loan (Under Section 24)
House Rent Allowance Daily Employment Courses Expenses
Helper Allowance Professional 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 Lakhs 30%
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