Income Tax Slab |
Individuals Below The Age Of 60 Years – Income Tax Slabs |
Up to Rs 2.5 lakhs |
NIL |
Rs. 2.5 lakh -Rs. 5Lakhs |
5% |
Rs 5 .00 lakh – Rs 10 lakhs |
20% |
> Rs 10.00 lakh |
30% |
NOTE:
-
Tax exemption limit of Rs.2,50,000 Per Person, HUF is under 60 years of age
and NRIs for FY 2018-19
-
Another 4% Health and education fund will apply to tax revenue
listed as above.
-
Payment:
-
10% of income tax, when total income exceeds Rs.50 lakh up to Rs.1 crore.
-
15% of income tax, when total revenue is more than Rs.1 million.
c. Income tax slab rates for FY 2020-21 (AY 2021-22) – New tax regime & Old Tax regime
Income Tax
Slab |
Existing Regime Slab Rates for FY 20-21 (AY 21-22)
|
New Regime Slab Rates for FY 20-21 (AY 21-22) |
Resident Individuals & HUF < 60 years of age & NRIs
|
Resident Individuals & HUF > 60 to < 80 years |
Resident Individuals & HUF > 80 years |
Applicable for All Individuals & HUF |
Rs 0.0 – Rs 2.5 Lakhs |
NIL |
NIL |
NIL |
NIL |
Rs 2.5 – Rs 3.00 Lakhs |
5% (tax rebate u/s 87a is available)
|
NIL |
NIL |
5% (tax rebate u/s 87a is available)
|
Rs. 3.00- Rs 5.00 Lakhs |
5% (tax rebate u/s 87a is available) |
NIL |
Rs. 5.00 – Rs 7.5 Lakhs |
20% |
20% |
20% |
10% |
Rs 7.5 – Rs 10.00 Lakhs |
20% |
20% |
20% |
15% |
Rs 10.00 – Rs. 12.50 Lakhs |
30% |
30% |
30% |
20% |
Rs. 12.5 – Rs. 15.00 Lakhs |
30% |
30% |
30% |
25% |
> Rs. 15 Lakhs |
30% |
30% |
30% |
30% |
d. Conditions for opting New Tax regime.A taxpayer who chooses the permit rates on the New Tax system will have to give up certain exemptions and deductions available from the old tax system. In total there are 70 deductions and unrestricted exemptions, of which the most commonly used are listed below:
List of common Exemptions and deductions “ not allowed” under New Tax rate
regime
-
Leave Travel Allowance (LTA)
-
House Rent Allowance (HRA)
-
Conveyance allowance
-
Daily expenses in the course of employment
-
Relocation allowance
-
Helper allowance
-
Children education allowance
-
Other special allowances [Section 10(14)]
-
Standard deduction on
salary
-
Professional tax
-
Interest on housing loan (Section 24)
-
Deduction under Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section
80CCD(2))
List of deductions “allowed” under new Tax rate regime
-
Transport allowance for specially abled people
-
Conveyance allowance for expenditure incurred for travelling to work
-
Investment in Notified Pension Scheme under section 80CCD(2)
-
Deduction for employment of new employees under section 80JJAA
-
Depreciation u/s 32 of the Income-tax act except additional depreciation.
-
Any allowance for travelling for employment or on transfer
e. Example for Old Tax regime Vs New Tax regime & which is better? The new tax system can greatly benefit middle-class taxpayers with a taxable income of up to Rs 15 lakh. The old empire is the best option for high-income earners.
The new income tax system benefits low-income people. Since the new state provides seven pieces of low tax, anyone who pays taxes without seeking tax deduction can benefit by paying a lower amount of tax under the new tax regime. For example, check the amount of income before deductions up to Rs 12 lakh will have a higher tax debt under the old system if they have invested less than Rs 1.91 lakh. So, if you are investing less in tax savings programs, adopt a new system.
That being said, if you already have a financial plan to create wealth by investing in tax-saving tools; health insurance and Mediclaim; to pay for children's tuition; repayment of EMIs with education loan; home purchase with home loan; and so on, the old government is helping to withstand high taxes and lower tax exemptions.
According to the above and considering the new income tax system, if taxpayers want to choose the tax rates in the contract, they can review both of these laws. Therefore, it is advisable to do a comparative evaluation and analysis under both principles and to choose the one that is most beneficial as it may differ from person to person.
Let's take the example of comparing the Old & New Tax Checker system with an income of Rs 10 Lakh.
Mr. Ravi has a salary of Rs 10 lakh. The total investment / s 80C is Rs 1.7 lakh under ELSS, PF, LIC premium and the main mortgage loan installment. In addition he pays for medical insurance for himself and his wife for Rs 28000. If he chooses the old tax plan, then he can apply for the above deduction, however if he wishes to go to the new tax system otherwise this deduction will not be available. He has paid a mortgage interest of Rs 75000 on FY 20-21. Let's take a look at tax evasion in both of these laws
Particulars |
Old Tax Regime (Rs) |
New Tax Regime (Rs) |
Gross Income |
1,000,000 |
1,000,000 |
Deductions: |
|
|
u/Sec: 80C |
150,000 |
– |
u/Sec: 80D |
25,000 |
– |
u/Sec: 24(b) |
75,000 |
– |
Taxable Income |
750,000 |
1,000,000 |
Tax Slab (OLD) |
|
|
0 to 2.5 Lakh |
– |
– |
2.5 to 5 Lakh @ 5% |
12,500 |
– |
5 Lakh to 10 Lakh @ 20% |
50,000 |
– |
> 10 Lakh @ 30% |
– |
– |
Tax Slab (NEW) |
|
|
0 to 5 Lakh |
– |
– |
2.5 to 5 Lakh @ 5% |
– |
12,500 |
5 to 7.5 Lakh @ 10% |
– |
25,000 |
7.5 Lakh to 10 Lakh @ 15% |
– |
37,500 |
10 Lakh to 12.5 Lakh @ 20% |
– |
– |
12.5 Lakh to 15 Lakh @ 25% |
– |
– |
> 15 Lakh @ 30% |
– |
– |
Income Tax |
62,500 |
75,000 |
Cess @ 4% |
2,500 |
3,000 |
Total Tax Outgo |
65,000 |
78,000 |
As the example above, if the total revenue exceeds Rs 10 lakh or also the deductions / S 80C, 80D, and 24 (b) of the Income Tax Act are available, then the old state benefits greatly from a tax planning perspective. Although for people in the low-income group, earning an amount of Rs 5 lakh; the new tax slab system may be beneficial.
f. Time of Selection of option of ols vs new regime?
Nature of Income |
Time of Selection of option of old vs new regime |
Income from Salary or any other head of income attracting
TDS |
An employee can choose to opt for a new tax plan and expand his or her employer
early FY 2020-21. Employees can change the selection option
annual tax plan
But if a new tax slab system is selected earlier this year, it will not be so
changed at any time during the year for TDS purposes, however the option may be
changed at the time of submission of income tax return.
|
Income from Business & Profession |
In case of Business or profession income , the option to choose
between the tax regimes is available only once for a particular business. |
g. New Tax regime Slab rates for domestic companies – FY 2020-21.
Particulars |
Existing / Old regime Tax rates |
New Regime Tax rates |
Company opts for section 115BAB (not covered in section 115BA and 115BAA) &
is registered on or after October 1, 2019 and has commenced manufacturing on or
before 31st March, 2023.
|
– |
15% |
Company opts for Section 115BAA , wherein the total income of a company has been
calculated without claiming specified deductions, incentives, exemptions and
additional depreciation
|
– |
22% |
Company opts for section 115BA registered on or after March 1, 2016 and engaged
in manufacture of any article or thing and does not claim deduction as specified
in the section clause.
|
– |
25% |
Turnover or gross receipt of the company is less than Rs. 400 crore in the
previous year 2018-19
|
25% |
25% |
Any other domestic company
|
30% |
30% |
Please refer to the new phases to evaluate the performance of additional authorized tax rates.
Income tax slab rates for FY 2019-20
Select your Age
Group:
Income Tax Slab |
Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs |
Up to ₹2,50,000* |
Nil |
₹2,50,001 to ₹5,00,000 |
5% |
₹5,00,001 to ₹10,00,000 |
20% |
Above ₹10,00,000 |
30% |
NOTE:
-
Income tax exemption limit is up to Rs.2,50,000 for Individuals , HUF below 60 years
aged and NRIs for FY 2018-19
-
An additional 4% Health & education cess will be applicable on the tax amount
calculated as above
-
Surcharge:
– 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
– 15% of income tax, where the total income exceeds Rs.1 crore.
Invest Now & Save Upto ₹ 46,800 on Taxes
Income Tax Slab Rates for FY 2018-19
Select your Age
Group:
Income tax slab for Individual aged below 60 years & HUF
Income Tax Slab |
Tax Rates for Individual & HUF Below the Age Of 60
Years |
Income up to Rs 2,50,000* |
No tax |
Income from Rs 2,50,000 – Rs 5,00,000 |
5% |
Income from Rs 5,00,000 – 10,00,000 |
20% |
Income more than Rs 10,00,000 |
30% |
NOTE:
-
An additional 4% Health & education cess will be applicable on the tax amount
calculated as above
-
Surcharge applicability:
– 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
– 15% of income tax, where the total income exceeds Rs.1 crore.
Invest Now & Save Upto ₹ 46,800 on Taxes
Income Tax Slab Rates for FY 2017-18
How to Calculate Income Tax from Income Tax Slabs?
Rohit has a taxable income of Rs 8,00,000. This income is calculated by adding income from all sources such as income, rental income, and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his FY taxpayers 2018-119 (AY 2019-2019).
Income Tax Slabs |
Tax Rate |
Tax Calculation |
*Income up to Rs 2,50,000 |
No tax |
|
Income from Rs 2,50,000 – Rs 5,00,000 |
5% (Rs 5,00,000 – Rs 2,50,000) |
Rs 12,500 |
Income from Rs 5,00,000 – 10,00,000 |
20% (Rs 8,00,000 – Rs 5,00,000) |
Rs 60,000 |
Income more than Rs 10,00,000 |
30% |
nil |
Tax |
|
Rs 72,500 |
Cess |
4% of Rs 72,500 |
Rs 2,900 |
Total tax in FY 2017-18 (AY 2018-19) |
|
Rs 75,400 |
Frequently asked questions
No, the new Income Tax regime can be selected and introduced by the finance department to facilitate tax compliance. The taxpayer has the option of choosing a new Tax state or continuing with the old tax regime. If you are an employee, the option should be selected at the beginning of the year and can be changed next year. However, in the case of business or professionalism, the option is available only once in AY 20-21. We will advise you to check your tax exits looking at both states and choose the one that will help you the most.
No, the new tax regime does not allow for many reductions and exemptions allowed for the old / existing tax level. The deduction of s 80C cannot be demanded from the taxpayer selects the tax clearance rates according to the new state.
FY 20-21 allows a taxpayer to pay tax by choosing any of the two tax states, the Old Tax Empire or the New Tax. The new tax regime gives a person the freedom to continue with the old tax regime if he wants to. When choosing a new tax regime, the taxpayer will be required to waive certain reductions and exemptions granted to the old tax regime that will be obtained if the old tax regime is elected to continue. one under Section 80CCD (2). This means that the employer's contribution to the National Pension Scheme is deducted from the annual salary. Under the old and new states, you can deduct Rs 2,50,000 from your gross salary to your income tax as the basic exemption applies to both states.
Taxes are collected by the Government through three methods: a) voluntary payment by taxpayers to various designated banks. For example, Advance Tax and Self-Assessment Taxes paid by taxpayers, b) Source Taxes [TDS] on the recipient's salary, and c) Taxes collected from the source [TCS].
Income tax is levied on an individual's annual income. The year under the Income Tax Act is a period that commences on 1 April and ends on 31 March of the next calendar year. The Income Tax Act divides the year as- (i) The previous year, and (ii) the Year of the Inspection.
The tax payable by companies on their income is called corporate tax, and the same payment on challan is called Income-tax on Companies (Corporation tax) -0020. Non-corporate tax is called Income-tax, and if the same is paid to the challan it will be called Income-tax (excluding Company) -0021
No, the due date for all the taxpayers is not the same. For individual taxpayers the due date is 31st July of the assessment year. However due to Covid, the due date for filing ITR for FY 19-20 has been extended to 31st Dec for individual / HUF , non -audit cases whereas it is 31st Jan for audit cases.
Section 87A is a statutory grant that allows for a tax rebate under the Income Tax Act of 1961. The clause introduced by the Finance Act of 2013 provides for tax exemptions for persons earning below a certain limit. Section 87 A provides that anyone living in India and whose income does not exceed Rs 5,00,000 is entitled to claim a rebate. The full tax rebate is therefore available to people with less than Rs 5 Lac of taxable income. This discount only applies to individuals and not to companies, etc. And we are calculating before adding the health and education expenditure of 4%.
Yes, IT slab prices can be changed by government. If there are changes in IT slab levels in the financial year then they are presented in that year's Budget and presented to Parliament.
Yes. There are separate slab rates for individual taxpayers aged below 60 years, between 60 to 80 years (senior citizens) and above 80 years (super senior citizens). Also tax rate for partnership firms and LLPs, Companies, Local authorities and Co-operative societies etc are different.
The taxation process is dependent on a number of factors. It is advisable to get in touch with a personal tax advisor.
To submit your income tax return online, log on to either the income tax e-filing portal or you can also e-file through
Myitronline . For e-filing through the income tax portal, log on to https://www.incometaxindiaefiling.gov.in/home and
download the excel/Java utilities from the “download > ITR return preparation software” tab on the main screen. You can
extract the ZIP files and fill the required information in these utilities and upload it after logging in with PAN,
password and the captcha. Please remember to verify the return before submitting or within 120 of filing ITR. ITR filing
is incomplete without verification. You can also directly fill the details in the auto-populated ITR form through
“prepare and submit online”. Please click here to read the step-by-step guide on how to e-file ITR on the income tax
e-filing portal. Also, you can simplify your e-filing and do it in under 7 minutes with Myitronline . To submit your income tax return online, log on to either the income tax e-filing portal or you can also e-file through
Myitronline . For e-filing through the income tax portal, log on to https://www.incometaxindiaefiling.gov.in/home and
download the excel/Java utilities from the “download > ITR return preparation software” tab on the main screen. You can
extract the ZIP files and fill the required information in these utilities and upload it after logging in with PAN,
password and the captcha. Please remember to verify the return before submitting or within 120 of filing ITR. ITR filing
is incomplete without verification. You can also directly fill the details in the auto-populated ITR form through
“prepare and submit online”. Please click here to read the step-by-step guide on how to e-file ITR on the income tax
e-filing portal. Also, you can simplify your e-filing and do it in under 7 minutes with Myitronline .click here toknow how
how.
The income tax law has set a basic limit for people to the extent that taxpayers are not required to pay taxes. Such a limit varies according to the different categories of taxpayers. A person under the age of 60 is not required to pay tax up to the income limit of Rs 2.5 Lakh. People over the age of 60 but under the age of 80 are not required to pay a tax of up to Rs 3 lakh of income. People over the age of 80 are not required to pay a tax of up to Rs 5 lakh of income.
Surcharge is a tax on tax. Hence surcharge is calculated on the tax payable and not on the income earned. For example, if you have an income of Rs 1000 with 30% tax of Rs. 300, if the income is subject to surcharge then 10% surcharge would be levied on tax of Rs. 300 i.e Rs 30. Surcharge is levied at different rates i.e 10% is levied is total income is > 50 lakh, 15% is levied if total income is more than 1 crore, 25% of income if total income is > 2 crore and 37% if total income is more than 5 crore.
A person over the age of 60 is considered a senior citizen and a person over the age of 80 is considered a senior citizen for income tax purposes. Older people and senior citizens have been granted exempt tax restrictions and certain benefits by the Income Tax Act to provide assistance.
To make an income tax payment online, please log in to nsdl.com. Please select the appropriate challan for example ‘challenge and / ITNS 280’ to pay in the event of a self-assessment tax and choose to proceed. A window will open, select a tax as tax (excluding companies), select a payment type, select a payment method, and enter details such as PAN, AY, address, etc. Once you have processed, a window will open that requires you to make a payment using a bank net or bank card. Once the payment has been completed, the opposing filing will be shown as proof of payment. Please save this counterfoil for future use.
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