New Income Tax Slab Rate for Financial Year 2020-21

New Income Tax Slab Rate for FY 2020-21– Union Finance Minister has proposed new income tax slabs and lower rates on Income Tax slabs up to Rs 15 Lakhs.

Catch is – These income tax rates are optional and are available to those who are willing to forego some exemptions and some deductions.

The new income tax rates will be significantly reduced for those who forego reliefs, exemptions.

The government will forego ₹40,000 crore per annum in revenue from new income tax rates for individuals.

Download – Income Tax Calculator FY 2018-19, AY 2019-2020 – Excel Download

New income tax slabs

0 – 2.5 lakh – exempted

₹2.5 lakh – ₹5 lakh – 5%

₹5 lakh – ₹7.5 lakh – 10% (20% earlier)

₹7.5 lakh – ₹10 lakh – 15% (20% earlier)

₹10 lakh to ₹12.5 lakh – 20% (30% earlier)

₹12.5 lakh – ₹15 lakh – 25% (30% earlier)

No change in tax rates above ₹15 lakh

These new income tax related proposals will come into effect from the assessment year 2021-22 or financial year 2020-21. Assessment year is the year that immediately follows the financial year.

Tags : Income Tax