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FY 2020-21

Budget 2020-21

Income Tax slabs under new tax regime for all individuals for FY 2020-21 (AY 2021-22)

Income Tax SlabTax Rate
Up to Rs 2.5 lakhNIL
Rs 2.5 lakh to Rs 5 lakh5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh10%
Rs 7.5 lakh to Rs 10 lakh15%
Rs 10 lakh to Rs 12.5 lakh20%
Rs 12.5 lakh to Rs 15 lakh25%
Rs 15 lakh and above30%
  • No tax for individuals with income less than ₹ 2,50,000
  • 0%-5% tax with income ₹ 2.5 lacs to 5 lacs for different age groups
  • Investments upto ₹ 1.5 lacs under Sec 80C can save ₹ 46,800 in taxes.

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2020-21) as per Old RegimeIncome (Rs)
Gross Salary8,00,000
Less: Standard deduction For Salary Person (50,000)7,50,000
Less: Deduction under section 80C1,50,000
Total Taxable income6,00,000
Income-tax (@ 5% from Rs 2.5 to 5 lakh)12,500
Income-tax (@ 20% from Rs 5 to 10 lakh)20,000
Total Tax32,500
Health & Education Cess (4%)1,300
Tax Payable as per Old Regime33,800
Source of income (FY 2020-21) as per New RegimeIncome (Rs)
Gross Salary8,00,000
No Exemptions / DeductionsZero
Total Taxable income8,00,000
Income-tax (@ 5% from Rs 2.5 to 5.00 lakh)12,500
Income-tax (@ 10% from Rs 5.00 to 7.50 lakh)25,000
Income-tax (@ 15% from Rs 7.50 to 10.00 lakh)7,500
Total Tax45,000
Health & Education Cess (4%)1,800
Tax Payable as per New Regime46,800

Tax Benefit as per Old Regime is Rs.13000