In order to fascinate, magnify, and provide better structure to individual taxpayers to pay their income tax up-to-mark without any worry and also create a seamless income tax pattern, the Union budget 2020 introduces a new personal income tax regime for individual taxpayers.
However, this new tax slab and different unproportionate rates come with a cost, but many of the individual taxpayers praised it as a good and better option compared to the old tax regime.
In India, an individual is levied to pay taxes on their income if they fall into income slab rates on the basis of a slab system.
So, today in this blog I will discuss income slabs and tax rates as per new modification along with comparison to the previous one.
INCOME SLAB AND TAX RATES FOR F.Y 2020-21/A.Y 2021-22
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Income Tax Rate & Slab for Individuals & HUF
1.1 Below the age of 60 years
| Taxable Income |
Tax Rate (Old Regime) |
Tax Rate (New Regime) |
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Above Rs. 15,00,000 | 30% | 30% |
1.2 Individual above the age of 60 years and less than 80 years
| Taxable Income |
Tax Rate (Old Regime) |
Tax Rate (New Regime) |
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 3,00,000 | Nil | 5% |
| Rs. 3,00,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Above Rs. 15,00,000 | 30% | 30% |
1.3 Individual above the age of 80 years i.e. super senior citizen
| Taxable Income |
Tax Rate (Old Regime) |
Tax Rate (New Regime) |
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | Nil | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Above Rs. 15,00,000 | 30% | 30% |
Income Tax Rates for AOP/BOI/Any other Artificial Juridical Person:
An organization having none single natural person but, anyhow, is authorized by law with duties and rights and is recognized as a legal person and having distinct recognition. This type of entity or can be said judicial person liable to pay taxes on the basis of new income tax regime
| Taxable Income | Tax Rate |
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
In addition Surcharge:
- 10% of Income tax if total income exceeds Rs.50 lakh
- 15% of Income tax if total income exceeds Rs.1 crore
- 25% of Income tax if total income exceeds Rs.2 crore
- 37% of Income tax if total income exceeds Rs.5 crore
Note: Education cess 4% of income tax plus surcharge is levied and applicable in all-falls of above categories.
Tax Slab Rate for Domestic Company:
Other than foreign companies, domestic companies are also liable to pay taxes as per the new taxable system.
| Basis | Tax Rate % |
| Turnover < Rs. 400 crore | 25% |
| If company opted section 115BA (Note 1) | 25% |
| If company opted for section 115BAA (Note 2) | 22% |
| If company opted for section 115BAB (Note 3) | 15% |
| Any other domestic company | 30% |
In addition:
- 7% of Income tax where total income exceeds Rs.1 crore
- 12% of Income tax where total income exceeds Rs.10 crore
- 10% of income tax where domestic company opted for note 2 and note 3
Also 4% education cess of income tax plus surcharges.
Read More: How to Save Income Tax on Fixed Deposit (FD)
Additional checklist income tax slab rates for:
- A partnership firm (including LLP) and local authority is taxable at 30% including 4% of education cess plus 12% surcharge of Income tax where total income exceeds Rs. 1 crore.
- A foreign company is taxable at 40% including 4% of Income tax plus 2% and 5% surcharge of income tax where total income exceeds Rs. 1 crore and Rs. 10 crore, respectively.
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