Income Tax slab for the AY 2020-21 | Income up to Rs.5,00,000 has no income tax | income tax slab 2020 21

Income tax in India following slab rates are applicable for A.Y. 2020-21 and F.Y. 2019-20.

Income tax is calculated on the basis of the slab rate which defines under the Finance Act of the relevant year. the income tax rates are issued by our Finance minister in the budget of every year. Following slab rates are applicable for F.Y. 2019-20 and A.Y. 2020-21.

Below mentioned figures arrived after deducting your investment which is exempt from income tax under section 80C to 80U.

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Slab rate for the individual and HUF ( Age less than 60 years )

1. If the income of an individual and HUF is less then Rs.2,50,000 tax is not payable.
2. Income between Rs.2,50,000 to Rs.5,00,000 - Tax payable is Rs.12,500. (2,50,000 * 5% = 12,500)
3. Income between Rs.5,00,000 to Rs.10,00,000 - Tax payable is Rs.1,00,000 (5,00,000 * 20% = 1,00,000)
4. Income above Rs.10,00,000 - Taxable at 30%.
5. Health and Education cess is also applicable at the rate of 4% of Tax payable.

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Slab rate for the individual and HUF ( Age 60 years and above )

1. If the income of an individual and HUF (Above 60 years and above) is less then Rs.3,00,000 tax is not payable.
2. Income between Rs.3,00,000 to Rs.5,00,000 - Tax payable is Rs.10,000. (2,00,000 * 5% = 10,000)
3. Income between Rs.5,00,000 to Rs.10,00,000 - Tax payable is Rs.1,00,000 (5,00,000 * 20% = 1,00,000) 
4. Income above Rs.10,00,000 - Taxable at 30%
5. Health and Education cess are also applicable at the rate of 4% of Tax payable.

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Slab rate for the individual and HUF ( Age 80 years and above )

1. If the income of an individual and HUF (Above 80 years and above) is less then Rs.5,00,000 tax is not payable.
2. Income between Rs.5,00,000 to Rs.10,00,000 - Tax payable is Rs.1,00,000 ( 5,00,000 * 20% = 1,00,000 )
3. Income above Rs.10,00,000 - Taxable at 30%.
4. Health and Education cess are also applicable at the rate of 4% of Tax payable.

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Income up to Rs.5 lakh has no tax payable.

Now if you think that in the interim budget 2019 the government has announced that up to Rs.5,00,000 there is no income tax but wait, its all the matter of rebate that you can claim under section 87A.
let's take a look at the criteria behind the income up to Rs.5,00,000 no tax payable.

First of all, you need to know that what is section 87A

1. under section 87A, provides tax relief to the individual whose total income is Rs.5,00,000 or less . Section 87A only applicable to that individual whose total income is Rs.5 lakh or less.
2. in the earlier year rebate was Rs.2,500 or income tax payable whichever is lower.
3. Now in the interim budget 2019, the finance minister has increased the rebate to Rs.12,500 or income tax payable whichever is higher.
4. After deducting rebate, we can say that income up to Rs.5,00,000 no income tax liability arises.
5. for better understanding go through the below examples.

For example.

Rebate is not Applicable. 

Rebate is Applicable.

Rebate is Applicable.

• The maximum rebate is Rs.12,500.

Now we can say that individuals whose total income Rs.5,00,000 or less they need not pay any tax.

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income up to rs.5 lakh No tax 

New income tax slab rate for F.Y. 2019-20 A.Y. 2020-21