Income tax slab India: Individual taxpayers, HUFs, AOP and BOI for the AY 20-21

Income tax slab India: Individual taxpayers, HUFs, AOP and BOI for the AY 20-21

The Income tax slab is a set of predetermined rates based on which a taxpayer’s income is assessed. Every year amendments are made to the Income tax act by proposing a finance bill which directly decides the threshold limits for various tax rates. This year the honourable Finance Minister of India, Piyush Goyal has presented the interim budget on 1st February in Lok Sabha on which he stated various amendments in Income tax act 1961 through Finance Bill 2019.

Income tax slab rates are dependent on the following factors:    

•    Residential status of Assessee
•     Rate of tax
•     Income of Assessee
•     Income tax charge 
•     Threshold limit
•     Gross income

Applicability of Income tax slab

The income tax slab is applicable to:

•     Any resident income with a source of income  
•     A Hindu Undivided Family (HUF)
•     A company
•     A firm
•     An Association of person (AOP) or a Body of Individuals (BOI) 
•     Any local authority

Income tax slabs for individual taxpayers, HUFs, AOP and BOI (Less than 60 years old) for the AY 20-21

Income tax slab	Rate of tax	Health and education cess
Up to Rs 250000	Nil	Nil
Rs 250000 to Rs 500000	5% of total income exceeding Rs 250000	4%
Rs 500000 to Rs 1000000	Rs 12500+20% of total income exceeding Rs 500000	4%
Above Rs 1000000	Rs 112500+30% of total income exceeding Rs 1000000	4%

Income tax slabs for Senior Citizens (>=60 years but <80 years) for the AY 20-21

Income tax slab	Rate of tax	Health and education cess
Up to Rs 300000	Nil	Nil
Rs 300000 to Rs 500000	5% of total income exceeding Rs 300000	4%
Rs 500000 to Rs 1000000	Rs 10000+20% of total income exceeding 500000	4%
Above Rs 1000000	Rs 110000+30% of total income exceeding Rs 1000000	4%

Income tax slabs for very senior citizens(>=80 years) for the AY 20-21

Income tax slab	Rate of tax	Health and education cess
Up to Rs 500000	Nil	Nil
Rs 500000 to Rs 1000000	20% of total income exceeding Rs 500000	4%
Above Rs 1000000	Rs 100000+30% of total income exceeding Rs 1000000	4%

There has not been any change in the slab rates for the computation of tax of individuals and HUFs for the AY 2020-21.