Income Tax Slab Rates for FY 2020-2021 & AY 2021-2022

Income Tax in India is imposed and collected by the Government of india. Tax can be categorised into two parts- Direct Tax and indirect Tax. Indian Income Tax levies tax on individual taxpayers on the basis of a slab system. Slab rates are different for different categories of taxpayers. The Income Tax Act has divided individual taxpayers into three categories. The description of categories are as follows:

• Individuals (aged less than 60 years) including residents and non-residents
• Resident Senior Citizens (aged between 60 to 80 years)
• Resident Super Senior Citizens (aged more than 80 years)

Income Tax Slabs for Individuals in FY 2020-2021

Income Tax Slabs for Senior Citizens in FY 2020-2021

Income Tax Slab for Super Senior Citizens in FY 2020-2021

Exemptions and Deductions available under the New Income Tax Regime:

1. Transport allowances are allowed as deduction in case of a specially abled person while computation of Income Tax.
2. Conveyance allowance received by the employer to meet the conveyance expenditure incurred as a part of the employment.
3. Any compensation received to meet the expenditure incurred on travel, tour or transfer.
4. Daily allowance to meet the regular charges or expenditure incurred.

Exemptions and Deductions not claimable under New Income Tax Regime:

1. The Standard deduction, Professional tax and entertainment allowance on salaries
2. Leave Travel allowance (LTA)
3. House Rent Allowance (HRA)
4. Children education allowance
5. Helper Allowance
6. Minor Children income allowance
7. Other special allowances [Section 10(14)]
8. Interest on Housing on the self occupied property or vacant property (Section 24)
9. Deduction from family pension income
10. Chapter VI-A deduction (80C, 80D, 80E and so on) (except Section 80CCD(2) and 80JJA)
11. Without exemption or deduction for any other perquisites or allowances.