Income Tax Rates and Slabs in India: The age of the individual is the factor to divide the slab rates in the Income Tax table. The age groups are up to age 60, age 60 to 80 and above age 80.
Income Tax Old Regime and New Regime
In Union Budget 2020-21, the news tax slab rate regime is optional and a taxpayer can choose to pay tax in the old regime.
Simple Income Tax Calculation with example
For example, an employee received an annual salary of Rs. 7,60,000. If he did not save on any instruments, tax calculation will be as follows…
He will have to pay Rs. 56,680 on his total income as per the old regime.
He will have to pay Rs. 39,000 on his total income as per the new regime.
New Taxable Income with Tax slab rates
- Up to Rs. 2.5 lacs – No Tax
- Rs. 2.5 to Rs. 5 lacs – 5%
- Rs. 5 to Rs. 7.5 lakh – 10%
- Rs. 7.5 to Rs. 10 lakh – 15%
- Rs. 10 to Rs. 12.5 lakh – 20%
- Rs. 12.5 to Rs. 15 lakh – 25%
- Above Rs. 15 lakh – 30%
Existing Income Taxable Income with IT slab tax rates
- 0 to Rs. 2.5 Lacs – Exempt
- Rs. 2.5 to Rs. 5 Lacs – 5%
- Rs. 5 to Rs. 7.5 Lakh – 20%
- Rs. 7.5 to Rs. 10 Lakh – 20%
- Rs. 10 to Rs. 12.5 Lakh – 30%
- Rs. 12.5 to Rs. 15 Lakh – 30%
- Above Rs. 15 Lakh – 30%
Income Tax Exemption in Old and New Regime
| Taxable Income Slab (Rs.) | New Tax Rates | Existing tax rates |
| Up to Rs. 2,50,000 | Exempt | Exempt |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 10% | 20% |
| Rs. 7,50,001 to Rs. 10,00,000 | 15% | 20% |
| Rs. 10,00,001 to Rs. 12,50,000 | 20% | 30% |
| Rs. 12,50,001 to Rs. 15,00,000 | 25% | 30% |
| Above Rs. 15,00,000 | 30% | 30% |
Income Tax Ready Reckoner Table FY 2020-21
Income Tax Ready Reckoner Comparison Table between New and Old regime calculation of the Financial Year 2020-21 for Government Employees in India. The table shows the tax in the old and new regimes for individual annual income from 5 lakh to 12 lakh. [Click to view the table]
Latest Developments on Income Tax
[catlist id=110,3999 pagination=yes numberposts=500 link_titles=yes date=yes]