The income tax slab rates are generally revised every year during the budget. This year also, Union Budget 2020 witnessed changes in the income tax slabs. Budget 2020 has given an option to choose between the existing income tax regime and a new regime for the coming financial year 2020-21.

The new tax regime offers lower tax rates and new tax slabs and simultaneously removes tax exemptions and will result in lower tax outgo for the taxpayer, according to the finance minister.

Income Tax Slab Rate for Women/Men below 60 Years of Age

Note: Cess and surcharge on income tax payable in the new proposed personal tax regime remain the same as in the existing tax regime.

If you are opting for new tax rates 2020 you will not be allowed to enjoy several exemptions and deductions which are as follows:

• Exemption of up to Rs 1,50,000 lakh under Section 80C for ELSS, NPS, PPF
• Exemption of up to Rs 25,000 under Section 80D for medical insurance premium.
• Tax benefits for disability under Section 80DD/80DDB
• Leave travel allowance exemption to salaried employees which could be availed twice in 4 years.
• House Rent Allowance to salaried individuals
• Standard deduction of Rs 50,000 to salaried taxpayers
• Entertainment allowance and Professional Tax under Section 16
• Tax benefit on interest on housing loan for a self-occupied or vacant house under Section 24
• Rs 15000 deduction from family pension under Section 57
• Tax rebate of up to Rs 12,500 on income up to Rs 5 lakh under Section 87A
• Deduction of up to Rs 2 lakh on Home Loan interest
• Tax break on interest on education loan under Section 80E
• Tax break on donations to NGOs under section 80G
• Additional deduction of up to Rs 1.5 lakh on Home Loan interest on affordable houses under section 80EEA
• Deduction of up to Rs 1.5 lakh for on Auto Loan interest on the electric vehicle under section 80EEB
• Claims under these sections will not be entertained under the new tax regime: 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB,80E, 80EE, 80EEA, 80EEB,80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA.

Existing slab rates

Note: Additionally, a surcharge of 10% of income tax, if income exceeds ₹50 lakhs but less than ₹1 crore.

Moreover, a surcharge of 15% of income tax if income exceeds ₹1 crore.

Income Tax Slab Rate for Senior Citizens(Above 60 years of age but less than 80 years)

Note: Additionally, a surcharge of 10% of income tax, if income exceeds ₹50 lakhs but less than ₹1 crore.

Moreover, a surcharge of 15% of income tax if income exceeds ₹1 crore.Income Tax Slab Rate for Senior Citizens( above 80 years of age)

Income Tax Slab Rate for Hindu Undivided Families(HUF)/ Association of Person/ Body of Individuals

Note: Additionally, a surcharge of 10% of income tax, if income exceeds ₹50 lakhs but less than ₹1 crore.

Moreover, a surcharge of 15% of income tax if income exceeds ₹1 crore.

Income Tax Slab for Co-operative Societies

Note: Additionally, a surcharge of 12% of income tax if income exceeds ₹1 crore.

Important facts related to Income Tax slab 2020-21