Individual -Salaried

Salaries persons and other individuals

Income Tax slabs

From FY 2020-21 every individual need to choose between following regime of taxation

Old Regime

Income Tax Slab	Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ₹2,50,000*	Nil
₹2,50,001 to ₹5,00,000	5% of total income exceeding ₹2,50,000
₹5,00,001 to ₹10,00,000	₹12,500 + 20% of total income exceeding ₹5,00,000

*In case of senior citizen income upto Rs 3,00,000 is exempt and balance remain same

A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:

– Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19

– Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20

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.

In short after claiming all types of deduction permissible under income tax act if your total income is less than Rs 5,00,000 you don’t have to pay any tax.

New regime

Income Tax Slab	Tax Rate
Up to Rs 2.5 lakh	Nil
Rs 2.5 lakh to Rs 5 lakh	5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh	10%
Rs 7.5 lakh to Rs 10 lakh	15%
Rs 10 lakh to Rs 12.5 lakh	20%
Rs 12.5 lakh to Rs 15 lakh	25%
Rs 15 lakh and above	30%

Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.

Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.

Leave Travel Allowance (LTA)
House Rent Allowance (HRA)
Daily expenses in the course of employment
Conveyance
Relocation allowance
Helper allowance

Children education allowance
Other special allowances [Section 10(14)]
Standard deduction
Professional tax
Interest on housing loan (Section 24)
Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)

Points to remember while opting for the new tax regime:

Option to be exercised on or before the due date of filing return of income for AY 2021-22

In case a taxpayer has a business, income and exercised the option, he/she can withdraw from the option only once. A business taxpayer withdrawing from the optional tax regime has to follow the regular income tax slabs.

Do not worry, we will help you to lower your tax burden in all possible means.

Surcharge applicability

Income limit	Surcharge Rate on the amount of income tax
Net income exceeds Rs 50 lakh but doesn’t exceed Rs 1 crore	10%
Net income above Rs 1 crore but doesn’t exceed Rs 2 crore	15%
Net income exceeds Rs 2 crore but doesn’t exceed Rs 5 crore	25%
Net income exceeds Rs 5 crore	37%