Income Tax Slab Rates for FY 2020-21

CA Sanya Kapoor | Last updated: 08 June 2020

Save Share

Quick Summary

This article outlines the income tax slab rates applicable in the UK for the Financial Year 2020-21 (Assessment Year 2021-22). It details different tax brackets for individuals below 60, senior citizens aged 60-79, and super senior citizens aged 80 and above. The rates vary depending on whether deductions and exemptions are claimed.

Latest Income Tax Slab Rates for F.Y 2020-2021 i.e A.Y 2021-22

If you are claiming deductions & Exemptions

Income Slab

Individuals (Aged below 60 Years)

UK Income Tax Slabs FY 2020-21: Rates and Guide

Upto Rs. 2,50,000			Nil
Rs. 2,50,000 to Rs.5,00,000			5%
Rs.5,00,000 to Rs.10,00,000			20%
Rs.10,00,001 and above			30%

Senior Citizens (Aged 60 Yrs and above but below 80 Yrs)

Upto Rs. 3,00,000		Nil
Rs.3,00,001 to Rs. 5,00,000		5%
Rs.5,00,000 to Rs.10,00,000		20%
Rs.10,00,001 and above		30%

Super Senior Citizens (Aged 80 yrs and Above)

Upto Rs. 5,00,000			Nil
Rs.5,00,000 to Rs.10,00,000			20%
Rs.10,00,001 and above			30%

If You are NOT Claiming Deductions & Exemptions

Senior Citizens (Aged 60 Yrs and above but below 80 Yrs)

Upto Rs. 2,50,000	Nil
Rs.2,50,000 to Rs. 5,00,000		5% (with Tax Rebate u/s 87A)
Rs.5,00,000 to Rs.7,50,000	10%
Rs.7,50,001 to Rs. 10,00,000	15%
Rs.10,00,000 to Rs. 12,50,000	20%
Rs.12,50,001 to Rs. 15,00,000	25%
Rs.15,00,000 and above	30%

Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.

Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.

1. Leave Travel allowance (LTA)

2. House Rent allowance (HRA)

3. Conveyance

4. Daily expenses in the course of employment

5. Relocation allowance

6. Helper allowance

7. Children education allowance

8. Other special allowances [Section 10(14)]

9. Standard deduction

10. Professional tax

11. Interest on housing loan (Section 24)

12. Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)

Additional Note :

1) Surcharge : 10% of income Tax where total income Exceeds Rs.50,00,0000 /-

2) 15% of income Tax where total Income Exceeds Rs. 1,00,00,000 /-

3) Health and education Cess - 4% of Income Tax & Surcharge

4) Rebate 87A : If the Net Total Income of the Resident Individual is upto Rs.500,000/- Rebate u/s 87A is allowed Maximum upto 12,500/- or the amount of tax whichever is lower.

5) Cess will be added after deducting Rebate u/s 87A.

FAQ :

For individuals under 60 claiming deductions in FY 2020-21, the tax slabs are: Nil up to Rs. 2,50,000; 5% on income from Rs. 2,50,000 to Rs. 5,00,000; 20% on income from Rs. 5,00,000 to Rs. 10,00,000; and 30% on income above Rs. 10,00,000.

Senior citizens (60-79 years) not claiming deductions in FY 2020-21 have the following rates: Nil up to Rs. 2,50,000; 5% on income from Rs. 2,50,000 to Rs. 5,00,000 (with rebate u/s 87A); 10% on income from Rs. 5,00,000 to Rs. 7,50,000; 15% on income from Rs. 7,50,001 to Rs. 10,00,000; 20% on income from Rs. 10,00,001 to Rs. 12,50,000; 25% on income from Rs. 12,50,001 to Rs. 15,00,000; and 30% on income above Rs. 15,00,000.

Super senior citizens (aged 80 years and above) have a tax-free income threshold of up to Rs. 5,00,000 for FY 2020-21.

When opting for the new tax regime in FY 2020-21, common deductions and exemptions that must be given up include Leave Travel Allowance (LTA), House Rent Allowance (HRA), standard deduction, professional tax, and most Chapter VI-A deductions (like 80C, 80D).

A health and education cess of 4% is applied to the total income tax and surcharge for FY 2020-21.

14154 Views 9 Likes Comment Share Income Tax Report

About the Author

CA Sanya Kapoor

CA IN JOB

I am a Chartered Accountant, qualified in 2019 with 4 exemptions .I have experience in the field of Statutoty Audits, Bank audit, TDS, Income Tax matters, GST and other legal Compliances. Proficient in MS-Excel and Tally. I have indepth knowledge in GST and Income Tax. I am an active blogger and my blogs relate to Inco ... Read more

View Articles

Comments :