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Income Tax Slabs and Rates
for AY 2020-21 (FY 2019-20) and AY 2021-22 (FY 2020-21)

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Income Tax Calculator - Firm, Company, ...

The Income Tax Slabs / Rates in India are different for different categories and status of tax payers. The Income Tax Slabs / Rates for Individuals, Senior Citizen and Very Senior Citizens, HUFs, AOP, BOI and Co-operatives are progressive in nature, where a lower tax rate is imposed on low-income earners compared to those with higher income, making it based on the taxpayer's ability to pay. That means it takes a larger percentage from high-income earners than it does from low-income earners. Individuals, HUFs, AOP, BOI and Co-operatives are taxed as per different slab rates ( varies from Nil to 30% ). However, Firms and Companies are taxed on fixed rate basis, except for certain specified incomes.

When income increases a specified limit(s), Surcharge on Income Tax is charged at specified Surcharge rate on Income Tax. The specified limit(s) for charging Surcharge and Surcharge rates are different for different categories of tax payers.

Cess (Health and Education / Education) is charged at specified rate on (Income Tax + Surcharge).


You may select and view Income Tax Slabs / Income Tax Rates, Education / Health & Education Cess rates, Surcharge rates and information about Marginal Relief on Surcharge for Assessment Years 2020-21 and 2021-22 for all category of tax payers (i.e. Individual Resident aged below 60 years, Senior Citizen, Very Senior Citizen, NRI or HUF or AOP or BOI or AJP, Firm, Local Authority, Co-operative, Domestic Company and Other Company).

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Income Tax Slabs and Rates : AY 2021-22

From Assessment Year 2021-22, Individuals and HUFs (including Resident Individual below 60 years of age, Senior Citizen, Very Senior Citizen, Non-resident Individual, Hindu Undivided Family (HUF), Association of Persons (AOP), Body of Indidividuals (BOI) and Artifical Judicial Person (AJP) ) will have option for computation of income and income tax liability as per provisions of Section 115BAC (new section proposed to be introduced).

If an Individual / HUF opts for Section 115BAC, no exemption or deduction under the provisions of clause (5) or clause (13A) or prescribed under clause (14) (other than those as may be prescribed for this purpose) or clause (17) or clause (32), of section 10 or section 10AA or section 16 or clause (b) of section 24 (in respect of the property referred to in sub-section (2) of section 23) or clause (iia) of sub-section (1) of section 32 or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii), of sub-section (1) or sub-section (2AA), of section 35 or section 35AD or section 35CCC or clause (iia) of section 57 or under any of the provisions of Chapter VI-A other than the provisions of sub-section (2) of section 80CCD or section 80JJAA from income will be available and his / her income tax liability for AY 2021-22 will be calculated as under:

For more details on Section 115BAC, please refer to the Finance Act No. 12 of 2020

All Individuals and HUFs (Incl. Resident aged below 60 years, Sr. Citizen and Very Sr. Citizen)
Applicable for AY 2021-22 if Opting Sec. 115BAC

Income SlabIncome Tax
Upto ₹ 2,50,000/-NIL
Above ₹ 2,50,000/- to ₹ 5,00,000/-5% of (taxable income - 2,50,000). If taxable income is upto Rs. 5 lacs, the tax liability is NIL on account of Tax Relief u/s 87A.
Above ₹ 5,00,000/- to ₹ 7,50,000/-₹ 12,500/- + 10% of (total income - 5,00,000)
Above ₹ 7,50,000/- to ₹ 10,00,000/-₹ 37,500/- + 15% of (total income - 7,50,000).
Above ₹ 10,00,000/- to ₹ 12,50,000/-₹ 75,000/- + 20% of (total income - 10,00,000).
Above ₹ 12,50,000/- to ₹ 15,00,000/-₹ 125,000/- + 25% of (total income - 12,50,000).
Above ₹ 15,00,000/-₹ 187,500/- + 30% of (total income - 15,00,000).
Surcharge ( subject to Marginal Relief ) 10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.
25% of Income Tax, in case taxable income is above ₹ 2 crore.
37% of Income Tax, in case taxable income is above ₹ 5 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Individual resident aged below 60 years (Individual resident born on or after 1st April 1961)
Applicable for AY 2020-21 and for AY 2021-22 if Not Opting Sec. 115BAC

Income SlabIncome Tax
Upto ₹ 2,50,000/-NIL
Above ₹ 2,50,000/- to ₹ 5,00,000/-5% of (taxable income - 2,50,000). If taxable income is upto Rs. 5 lacs, the tax liability is NIL on account of Tax Relief u/s 87A.
Above ₹ 10,00,000/-₹ 112,500/- + 30% of (taxable income - 10,00,000).
Surcharge ( subject to Marginal Relief ) 10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.
25% of Income Tax, in case taxable income is above ₹ 2 crore.
37% of Income Tax, in case taxable income is above ₹ 5 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Senior Citizen (Individual resident born on or after 1st April 1941 but before 1st April 1961)
Applicable for AY 2020-21 and for AY 2021-22 if Not Opting Sec. 115BAC

Income SlabIncome Tax
Upto ₹ 3,00,000/-NIL
Above ₹ 3,00,000/- to ₹ 5,00,000/-5% of (taxable income - 3,00,000). If taxable income is upto Rs. 5 lacs, the tax liability is NIL on account of Tax Relief u/s 87A.
Above ₹ 5,00,000/- to ₹ 10,00,000/-₹ 10,000/- + 20% of (taxable income - 5,00,000).
Above ₹ 10,00,000/-₹ 110,000/- + 30% of (taxable income - 10,00,000)
Surcharge ( subject to Marginal Relief ) 10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.
25% of Income Tax, in case taxable income is above ₹ 2 crore.
37% of Income Tax, in case taxable income is above ₹ 5 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Very Senior Citizen (Individual resident born before 1st April 1941)
Applicable for AY 2020-21 and for AY 2021-22 if Not Opting Sec. 115BAC

Income SlabIncome Tax
Upto ₹ 5,00,000/-NIL
Above ₹ 5,00,000/- to ₹ 10,00,000/-20% of (taxable income - 5,00,000).
Above ₹ 10,00,000/-₹ 100,000/- + 30% of (taxable income - 10,00,000)
Surcharge ( subject to Marginal Relief ) 10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.
25% of Income Tax, in case taxable income is above ₹ 2 crore.
37% of Income Tax, in case taxable income is above ₹ 5 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Any NRI or HUF or AOP or BOI or AJP
Applicable for AY 2020-21 and for AY 2021-22 if Not Opting Sec. 115BAC

Income SlabIncome Tax
Upto ₹ 2,50,000/-NIL
Above ₹ 2,50,000/- to ₹ 5,00,000/-5% of (taxable income - 2,50,000).
Above ₹ 5,00,000/- to ₹ 10,00,000/-₹ 12,500/- + 20% of (taxable income - 5,00,000).
Above ₹ 10,00,000/-₹ 112,500/- + 30% (taxable income - 10,00,000)
Surcharge ( subject to Marginal Relief ) 10% of Income Tax, in case taxable income is above ₹ 50 lacs.
15% of Income Tax, in case taxable income is above ₹ 1 crore.
25% of Income Tax, in case taxable income is above ₹ 2 crore.
37% of Income Tax, in case taxable income is above ₹ 5 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Co-operative Society
Applicable for AY 2020-21 and for AY 2021-22 if Not Opting Sec. 115BAD

Income SlabIncome Tax
Upto ₹ 10,000/-10% of the income.
Above ₹ 10,000/- to ₹ 20,000/-₹ 1,000/- + 20% of (taxable income - 10,000)
Above ₹ 20,000/-₹ 3,000/- + 30% of (taxable income - 20,000)
Surcharge ( subject to Marginal Relief )12% of Income Tax, in case taxable income is above ₹ 1 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Co-operative Society
Applicable for AY 2021-22 if Opting Sec. 115BAD

Income Tax22% of total income.
Surcharge10% of Income Tax
Health & Education Cess4% of (Income Tax + Surcharge).

Firm - Applicable for AY 2020-21 and AY 2021-22

Income Tax30% of taxable income.
Surcharge ( subject to Marginal Relief )12% of Income Tax, in case taxable income is above ₹ 1 crore
Health & Education Cess4% of (Income Tax + Surcharge).

Local Authority - Applicable for AY 2020-21 and AY 2021-22

Income Tax30% of taxable income.
Surcharge ( subject to Marginal Relief )12% of Income Tax, in case taxable income is above ₹ 1 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Domestic Company - Not opting Section 115BAA / 115BAB (Turnover in previous year upto ₹ 400 crores)
- Applicable for AY 2020-21 and AY 2021-22

Income Tax25% of taxable income.
Surcharge ( subject to Marginal Relief )7% of income tax, in case taxable income is above ₹ 1 crore
12% of income tax, in case taxable income is above ₹ 10 crores.
Health & Education Cess4% of (Income Tax + Surcharge).

Domestic Company - Not opting Section 115BAA / 115BAB (Turnover in previous year above ₹ 400 crores)
Applicable for AY 2020-21 and AY 2021-22

Income Tax30% of taxable income.
Surcharge ( subject to Marginal Relief )7% of income tax, in case taxable income is above ₹ 1 crore.
12% of income tax, in case taxable income is above ₹ 10 crores.
Health & Education Cess4% of (Income Tax + Surcharge).

Domestic Company - Opting Section 115BAA
Applicable for AY 2020-21 and AY 2021-22

Income Tax22% of taxable income.
Surcharge 10% of income tax
Health & Education Cess4% of (Income Tax + Surcharge).

Domestic Company - Opting Section 115BAB
Applicable for AY 2020-21 and AY 2021-22

Income Tax15% of taxable income.
Surcharge 10% of income tax
Health & Education Cess4% of (Income Tax + Surcharge).

Company other than a Domestic Company
Applicable for AY 2020-21 and AY 2021-22

IncomeIncome Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government50%
Any other income40%
Surcharge ( subject to Marginal Relief )2% of income tax, in case taxable income is above ₹ 1 crore.
5% of income tax, in case taxable income is above ₹ 10 crores
Health & Education Cess4% of (Income Tax + Surcharge).

Marginal Relief on Surcharge

In case taxable income exceeds ₹ 50 lacs / ₹ 1 crore Surcharge is payable on income tax at applicable rates. If increase in 'Income Tax + Surcharge' is more than the increase income over ₹ 50 lacs / ₹ 1 crore, the 'Surcharge' is reduced by such amount so that the 'Income Tax + Surcharge' become equal to increase in 'Total Taxable Income' over Rs. 50 lacs / 1 Crore respectively. The amount so reduced from 'Surchage' is 'Marginal Relief on Surcharge'.

 Example 1

 In case of an individual resident (< 60 years) / HUF / NRI (Not opting Section 115BAC) having taxable income of ₹ 50,01,000/-

1Income Tax on income of ₹ 50,01,000/-13,12,800
2Surcharge on income of ₹ 50,01,000/-1,31,280
3Income Tax + Surcharge on income of ₹ 50,01,000/- (1 + 2)14,44,080
4Income Tax on income of ₹ 50 lacs13,12,500
5Surcharge on income of ₹ 50 lacs0
6Income Tax + Surcharge on income of ₹ 50 lacs (4 + 5)13,12,500
7Increase income over ₹ 50 lacs1000
8Income Tax + Surcharge on income of ₹ 50 lacs + Increase income over ₹ 50 lacs13,13,500
9Income Tax and Surcharge payable on income of ₹ 50,01,000/- (Lower of 3 and 8 )13,13,500
10Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]1,30,580

 Example 2

 In case of an individual resident (< 60 years) / HUF / NRI (Not opting Section 115BAC) having taxable income of ₹ 60 lacs

1Income Tax on income of of ₹ 60 lacs16,12,500
2Surcharge on income of of ₹ 60 lacs1,61,250
3Income Tax + Surcharge on income of of ₹ 60 lacs (1 + 1)17,73,750
4Income Tax on income of ₹ 50 lacs13,12,500
5Surcharge on income of ₹ 50 lacs0
6Income Tax + Surcharge on income of ₹ 50 lacs (4 + 5)13,12,500
7Increase income over ₹ 50 lacs10,00,000
8Income Tax + Surcharge on income of ₹ 50 lacs + Increase income over ₹ 50 lacs23,13,500
9Income Tax and Surcharge payable on income of of ₹ 60 lacs ( Lower of 3 and 8 )17,73,750
10Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]0

 Example 3

 In case of an individual resident (< 60 years) / HUF / NRI (Not opting Section 115BAC) having taxable income of ₹ 1,00,01,000/-

1Income Tax on income of ₹ 1,00,01,000/-28,12,800
2Surcharge on income of ₹ 1,00,01,000/-4,21,920
3Income Tax + Surcharge on income of ₹ 1,00,01,000/- (1 + 2)32,34,720
4Income Tax on income of ₹ 1 crore28,12,500
5Surcharge on income of ₹ 1 crore2,81,500
6Income Tax + Surcharge on income of ₹ 1 crore (4 + 5)30,93,750
7Increase income over ₹ 1 crore1000
8Income Tax + Surcharge on income of ₹ 1 crore + Increase income over ₹ 1 crore30,94,750
9Income Tax and Surcharge payable on income of ₹ 1,00,01,000/- (Lower of 3 and 8 )30,94,750
10Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]1,39,970
Updated : Feb 01, 2020