Your income from salary, business or other income like income from fixed/recurring deposits etc are taxed as per income tax slabs. Budget 2020 presented on February 1, 2020 has made some changes in the tax slab.
There would be two options:
There is NO separate tax slab for men and women. Earlier women used to have slight benefit over men in terms of lower taxes!
The tax slabs are determined on age of person. As of today there are 3 slab rates based on age:
The table below gives the tax slab rates:
New Simple Tax Slab without exemption:
Income Slab | Tax Rate |
Income up to Rs 2,50,000 | No Tax |
Income from Rs 2,50,000 – 5,00,000 | 5% |
Income from Rs 5,00,000 – 7,50,000 | 10% |
Income from Rs 7,50,000 – 10,00,000 | 15% |
Income from Rs 10,00,000 – 12,50,000 | 20% |
Income from Rs 12,50,000 – 15,00,000 | 25% |
Income more than Rs 15,00,000 | 30% |
Tax Slab with exemption:
Income Slab
Tax Rate
Income up to Rs 2,50,000
No Tax
Income from Rs 2,50,000 – 5,00,000
5%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
New Simple Tax Slab without exemption:
Income Slab | Tax Rate |
Income up to Rs 3,00,000 | No Tax |
Income from Rs 3,00,000 – 5,00,000 | 5% |
Income from Rs 5,00,000 – 7,50,000 | 10% |
Income from Rs 7,50,000 – 10,00,000 | 15% |
Income from Rs 10,00,000 – 12,50,000 | 20% |
Income from Rs 12,50,000 – 15,00,000 | 25% |
Income more than Rs 15,00,000 | 30% |
Tax Slab with exemption:
Income Slab
Tax Rate
Income up to Rs 3,00,000
No Tax
Income from Rs 3,00,000 – 5,00,000
5%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
New Simple Tax Slab without exemption:
Income Slab | Tax Rate |
Income up to Rs 5,00,000 | No Tax |
Income from Rs 5,00,000 – 7,50,000 | 10% |
Income from Rs 7,50,000 – 10,00,000 | 15% |
Income from Rs 10,00,000 – 12,50,000 | 20% |
Income from Rs 12,50,000 – 15,00,000 | 25% |
Income more than Rs 15,00,000 | 30% |
Tax Slab with exemption:
Income Slab
Tax Rate
Income up to Rs 5,00,000
No Tax
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Company Turnover | Tax Rate |
Less than 400 crore (enhanced in July budget) | 25% |
More than 400 crore | 30% |
Also Read: 25 Tax Free Incomes & Investments in India
A partnership firm (including LLP) income is taxable at 30%.
Some income related to capital gains are taxed at special rates as shown below:
Capital Gains
Tax Rate
Short term capital gains from assets (Other than shares & mutual funds)
At Income Tax Slab rates listed above
Long term capital gains from assets (Other than shares & mutual funds)
20% (+4% Health and Education Cess)
Short term capital gains on shares and equity mutual funds
15% (+4% Health and Education Cess)
Long term capital gains on shares and equity mutual funds
10% (+4% Health and Education Cess)
Short term capital gains on debt mutual funds
At Income Tax Slab rates listed above
Long term capital gains on debt mutual funds
At 20% (+4% Health and Education Cess) with indexation
The above rates are based on FM speech. We will update after the budget documents are out and we look at the fine print.
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