Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Income tax slabs AY 2020-21

PSP psp (57 Points)

24 October 2019

request you sir
please provide A Y 2020-21income tax slabs rate for individual

Reply
Follow
Share

3 Replies

Kapadia Pravin (17249 Points)
Replied 24 October 2019

The Main relief to individual taxpayers is Rebate u/s 87A of Income Tax Act which increased the limit of rebate from Rs. 2,500 to Rs. 12,500 w.e.f. F.Y. 2019-20 for individual on total income upto Rs. 5 Lakh Per Annum. (AY 2020-2021)

Slabs have remained unchanged for FY 2019-20 and AY 2020-21 for all citizens (including Senior Citizens).

Standard Deduction for salaried taxpayers has been increased from Rs. 40,000 to Rs. 50,000.

Education Cess on Income Tax has remained same at 4%.

2 Like

Antrika Sinha (student) (315 Points)
Replied 24 October 2019

Income Tax Slab Rate for AY 2020-21 for Individuals:

1.1 Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:

Net income range	Income-Tax rate
Up to Rs. 2,50,000	Nil
Rs. 2,50,000- Rs. 5,00,000	5%
Rs. 5,00,000- Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

1.2 Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:

Net income range	Income-Tax rate
Up to Rs. 3,00,000	Nil
Rs. 3,00,000 – Rs. 5,00,000	5%
Rs. 5,00,000- Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

1.3 Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:

Net income range	Income-Tax rate
Up to Rs. 5,00,000	Nil
Rs. 5,00,000- Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Plus: -

Surcharge: - 10% of income tax where total income exceeds Rs. 50,00,000.

15% of income tax where total income exceeds Rs. 1,00,00,000.

Health and Education cess: - 4% of income tax and surcharge.

Note: - A resident individual is entitled for rebate under section 87A if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.

2 Like

happyvalley blooms (58 Points)
Replied 24 October 2019

Originally posted by : Kapadia Pravin
	The Main relief to individual taxpayers is Rebate u/s 87A of Income Tax Act which increased the limit of rebate from Rs. 2,500 to Rs. 12,500 w.e.f. F.Y. 2019-20 for individual on total income upto Rs. 5 Lakh Per Annum. (AY 2020-2021)Slabs have remained unchanged for FY 2019-20 and AY 2020-21 for all citizens (including Senior Citizens). Standard Deduction for salaried taxpayers has been increased from Rs. 40,000 to Rs. 50,000. Education Cess on Income Tax has remained same at 4%.

1) For a senior citizen with an income of say Rs 549000, sec 80TTB Rs 50000 rebate on bank FD interest can be applied?{ to bring down income below 5 lakhs to be eligible for 87A rebate of no tax till 5 lakhs}(Note : FD interest income is the major source of total income& is above 50k to be eligible)

2) If a senior citizen income is say around Rs 6,60,000 & full investment in 80C deduction (in 5yrs tax deposit or 5yrs SCSS deposit) of Rs 1.5 lakhs) + applying 80ttb deduction of 50k in interest income brings the income to say 510000, then 87A rebate is not eligible?

what I mean Does the net income has to fall below 500000 to be eligible for 87A rebate?

2 Like