Income Tax Rates: AY 2020-21 (FY 2019-20) – Vote on Account

Personal Income Tax Rates

Income Tax Rates applicable for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI) in India is as under:

Assessment Year 2020-21, Relevant to Financial Year 2019-20

For Individuals below 60 years age (including Woman Assessees):

Income
Tax Rate
Upto 250,000
Nil
250,000 to 500,000
5% of the amount exceeding 250,000
500,000 to 1,000,000
Rs.12,500 + 20% of the amount exceeding 500,000
1,000,000 & above
Rs.112,500 + 30% of the amount exceeding 1,000,000

For Individuals aged 60 years and above but below 80 years (Senior Citizen):

Income
Tax Rate
Upto 300,000
Nil
300,000 to 500,000
5% of the amount exceeding 300,000
500,000 to 1,000,000
Rs.10,000 + 20% of the amount exceeding 500,000
1,000,000 & above
Rs.110,000 + 30% of the amount exceeding 1,000,000

For Individuals aged 80 years and above (Very Senior Citizen):

Income
Tax Rate
Upto 500,000
Nil
500,000 to 1,000,000
20% of the amount exceeding 500,000
1,000,000 & above
Rs.100,000 + 30% of the amount exceeding 1,000,000

Surcharge on Income Tax:

  • 10% of Income Tax, where total income exceeds Rs.50 lakhs upto Rs.1 crore.
  • 15% of the Income Tax, where total taxable income exceeds Rs.1 crore.
  • Surcharge amount of 10% or 15% as applicable, shall not exceed the amount of income that exceeds Rs. 50 lakhs or Rs. 1 crore, as applicable.

Health and Education Cess: 4% of Income Tax plus Surcharge

Tax Credit: Section 87A provides for rebate from tax liability. Deduction of upto Rs. 12,500 is allowed from Income Tax payable for a person whose income doesn’t exceed Rs. 500,000. If the total tax payable is less than Rs. 12,500; deduction under Section 87A is restricted to total Income Tax payable.

Budget 2019: Change in Personal Income Tax Rates

No change in Income Tax slabs and Income Tax rates. However rebate under section 87A has been enhanced from Rs. 2,500 to Rs. 12,500 for person having income upto Rs. 500,000


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