How to calculate income tax for AY 2020-21 | FY 2019-20

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Income Tax slab for AY 2020-21 In India, income is calculated on the basis of different parameters like in case of individual assessee income is calculated on the basis of his age group and for other personal income is calculated as per their status under Income Tax Act.

Here in this post, we are discussing the Income Tax slab for AY 2020-21 | FY 2019-20 of individual, HUF, Partnership firm, Local Authority, Co-operative society, and Foreign/domestic company.

Income Tax slab for AY 2020-21 | FY 2019-20 – Individual and HUF

Here is the Income Tax slab for AY 2020-21 of Individual and HUF.

Tax slab for an individual and HUF

Income Tax slab Income Tax rate for individual (Age below 60 years) & HUF
upto Rs. 250000 NIL- No Tax
Rs. 250000 to Rs. 500000 5 % of total income exceeding Rs. 250000
Rs. 500001 to Rs. 1000000 Rs. 12500 + 20% of total income exceeding Rs. 500000
Above Rs. 1000000 Rs. 112500 + 30% of total income exceeding Rs. 1000000

Note 1:- An additional 4% health & education cess will be applicable to the tax amount calculates as above.

Note 2:- A tax rebate under section 87A is allowed to individual taxpayers for a maximum amount of Rs. 12500 if his total income is up to Rs. 500000 for FY 2019-20.

Note 3:- Surcharge is additional on the amount of Income tax

Also Read- Documents Required for ITR Filing- Income Tax Return Filing

Tax slab for Senior Citizen

Income Tax slab Income Tax rate for Senior Citizen
upto Rs. 300000 NIL- No Tax
Rs. 300000 to Rs. 500000 5 % of total income exceeding Rs. 300000
Rs. 500001 to Rs. 1000000 Rs. 10000 + 20% of total income exceeding Rs. 500000
Above Rs. 1000000 Rs. 110000 + 30% of total income exceeding Rs. 1000000

Note 1:- An additional 4% health & education cess will be applicable to the tax amount calculates as above.

Note 2:- A tax rebate under section 87A is allowed to individual taxpayers (Age 60 or 60+ but below 80 years) for a maximum amount of Rs. 10000 if the total income is up to Rs. 500000 for FY 2019-20.

Note 3:- Surcharge is additional on the amount of Income tax

Complete Guide

Tax slab for a Super Senior Citizen

Income Tax slab Income Tax rate for Super Senior Citizen
upto Rs. 500000 NIL- No Tax
Rs. 500001 to Rs. 1000000 20% of total income exceeding Rs. 500000
Above Rs. 1000000 Rs. 100000 + 30% of total income exceeding Rs. 1000000

Note 1:- An additional 4% health & education cess will be applicable to the tax amount calculates as above.

Note 2:- Surcharge is additional on the amount of Income tax

Must Read- How to Verify ITR- Know the 6 Ways to Verify your Income Tax Return

Surcharge applicable to the individual covered above

Income Limit Surcharge rate on amount of Income Tax
Net income exceed Rs. 50 Lakhs but does not exceed Rs. 1 Crore 10%
Net Income exceeds Rs. 1 Crore but does not exceed Rs. 2 Crore 15%
Net Income exceed Rs. 2 Crore but does not exceed Rs. 5 Crore 25%
Net Income exceed Rs. 5 Crore 37%

Income Tax slab for AY 2020-21 | FY 2019-20 – Partnership Firm

Here is the Income Tax slab for AY 2020-21 of Partnership Firm.

For Partnership firm Income tax rate is flat 30%.

Health and Education cess:- It will be 4 % of Income Tax + Surcharge

Surcharge:- It will be 12 % of Tax if net income exceed Rs. 1 crore. (Surcharge will be subject to marginal relief)

Also Read- Know about the types of ITR forms and know which ITR form should you file ?

Income Tax slab rates for Local Authority AY 2020-21 | FY 2019-20

Here is the Income Tax slab for AY 2020-21 of Local Authority.

For Local Authority Income tax rate is flat 30%

Health and Education cess:- It will be 4 % of Income Tax + Surcharge

Surcharge:- It will be 12 % of Tax, if net income exceed Rs. 1 crore. (Surcharge will be subject to marginal relief)

Income Tax slab rates for Co-operative society AY 2020-21 | FY 2019-20

Here is the Income Tax slab for AY 2020-21 of Co-Operative Society.

Taxable Income Tax Rate
Up to Rs. 10000 10%
Rs. 10000 to Rs. 20000 20%
Above Rs. 20000 30%

Health and Education cess:- It will be 4 % of Income Tax + Surcharge

Surcharge:- It will be 12 % of Tax, if net income exceed Rs. 1 crore. (Surcharge will be subject to marginal relief)

Income Tax slab rates for Companies AY 2020-21 | FY 2019-20

Tax slab for Domestic Company AY 2020-21

Particulars Tax Rates
where companies total turnover or gross receipts during the previous year does not exceed Rs. 400 crore 25%
Where company opt for section 115BA 25%/22%
Where company opt for section 115BAB 15%
All other domestic company 30%

Health and Education cess:- It will be 4 % of Income Tax + Surcharge

Surcharge:- It will be 7 % of Tax, if net income exceed Rs. 1 crore but below Rs. 10 crore and if income exceed Rs. 10 crore, surcharge will be 12%. (Surcharge will be subject to marginal relief)

Tax slab for Foreign Company AY 2020-21

Particulars Tax Rates
Royalty received from government or an Indian concern or fees for rendering technical services where such agreement has, in either case, been approved by the central government 50%
Any other income 40%

Health and Education cess:- It will be 4 % of Income Tax + Surcharge

Surcharge:- It will be 2 % Tax if net income exceed Rs. 1 crore but below Rs. 10 crore and if income exceed Rs. 10 crore, surcharge will be 5%. (Surcharge will be subject to marginal relief)

Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

Feedback/Suggestion- Hope you all find it useful, please give your valuable feedback & let us know if there is an error. Thanks in Advance

Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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