The Finance Minister has tabled today, the Union General Budget 2020-21 in the Parliament. Below are the latest Income Tax Slab Rates for FY 2020-21 or AY 2021-22. (FY is Financial Year and AY is Assessment Year)
Latest Income Tax Slab Rates FY 2020-21
Effective from FY 2020-21, the individual tax assessee will have an option to go for new Tax Slab Rates by forgoing the existing Income Tax Deductions and Exemptions, like HRA, Section 80C, Home loan tax benefits etc.,
So, to avail the below new tax slab, which is optional, taxpayers will have to let go of income tax exemptions.
- Income below Rs 2.5 lakh will continue to remain tax-exempt.
- Income between Rs 2.5 to Rs 5 lakh will be taxed at 5% but will continue to get Section 87a rebate, hence no tax liability.
- Under the new regime, taxpayers will pay 10%, 15%, 20% and 25% for incomes between Rs 5 to Rs 7.5 lakh, Rs 7.5 to Rs 10 lakh, Rs 10 to Rs 12.5 lakh and Rs 12.5 to Rs 15 lakh, respectively.
Income Tax Rates FY 2020-21 (if tax deductions / exemptions are to be claimed)
An individual tax assessee has to now calculate his/her tax liability with and without tax deductions and then can opt for a tax slab rate that is more beneficial to him/her.
It’s appears the various web site that the Nill Tax up to Rs. 5 Lakh. But it is revealed the deduction U/s 87A Max Rs. 12,500/-
Just simple the Tax Calculation for the Financial Year 2020-21 and Assessment Year 2021-2022 as per the Finance Budget 2020. The Tax Slab can be read up to Rs. 2.5 Lakh is Nill and From Rs. 2.5 Lakh to 5 lakh @ 5% . Hence the Tax will be 5,00,000/- Fewer Rs. 2,50,000/- = Rs. 2,50,000/- Tax effect on the rest amount i.e. Rs. 2,50,000/- @ 5% will be Rs. 12,500/- and Less Under Section 87A Rs. 12,500,/- So the Tax showed as Nil up to Rs. 5 Lakh.
it is clear that 5% Tax is not abolished by the Budget 2020, It stands years Tax Slab up to Rs. 5 Lakh.
Download And Prepare At a Time 50 Employees Automated Income Tax Form 16 Part B With Form 12 BA (Modified Format) [This Excel Utility Prepare At a time 50 Employees Form 16 Part B with Form 12 BA in New Format for A.Y. 2020-21]
The main feature of this Excel Utility:-
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- All the Amended Income Tax Section have in this utility as per Budget 2019
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