Get to Know About Latest Income Tax Slabs & Rates

By Akshay Sharma March 24, 2020 Finance

The Income Tax return is a document that is used by individuals to declare their gross taxable income on a particular financial year. They have to declare their income from different sources and pay taxes according to the income tax slab they qualify for. This form also helps individuals to claim tax exemption and calculate their overall tax liability.

Individuals have to file their income tax return according to the below-mentioned Income Tax slab –

New income tax slab for FY 2020-21 for citizens under 60 years of age

Up to Rs.2.5 lakh – no tax payment
2.5 lakh to Rs.5 lakh – 5%
5 lakh to Rs.7.5 lakh – 10%
7.5 lakh to Rs.10 lakh – 15%
10 lakh to Rs.12.5 lakh – 20%
12.5 lakh to Rs.15 lakh – 25%
Above Rs.15 lakh – 30%

The previous slab which is optional from 2020-21 citizens under 60 years of age

Up to Rs.2.5 lakh – no tax
2.5 lakh to Rs.5 lakh – 5%
5 lakh to Rs.7.5 lakh – 20%
7.5 lakh to Rs.10 lakh – 20%
10 lakh to Rs.12.5 lakh – 30%
12.5 lakh to Rs.15 lakh – 30%
Above Rs.15 lakh – 30%

New income tax slab for senior citizen (above 60 years, less than 80 years) from FY 2020-21

Up to Rs.3 lakh – no tax
3 lakh to Rs.5 lakh – 5%
5 lakh to Rs.10 lakh – 20%
Above Rs.10 lakh – 30%

New income tax slab for super senior citizens (above 80 years of age)

Up to Rs5 lakh – no tax
5 lakh to Rs.10 lakh – 20%
Above Rs.10 lakh – 30%

Individuals can perform their filing of income tax return online by following the below-mentioned process –

Login to the official website of the Income Tax department and complete the registration by using PAN which will serve as the ID and date of birth, name and other fundamental details.
After login goes to ‘Income Tax return’ under e-File’ tab and then chooses the assessment year to generate details of an individual’s IT returns.
The next step is selecting the method of IT filing. One can opt for an e-filling of income tax by clicking on the quick e-file option. On the other hand, one can download the requisite form and then fill it up offline and then re-upload it.
Individuals have to select the requisite form applicable to them from the list of ITR1, ITR2, ITR3, etc.
After filling up the form offline, individuals have to upload it through the ‘submit return’ section. Individuals who are filling it online have to submit their forms within the portal.
Upon submitting the ITR, an acknowledgement number will be generated. It is known as ITR V. this number will be sent automatically to the concerned individual’s registered email ID.
Income tax filing is incomplete without verification of this number. One can verify this online through email, Aadhaar OTP, net banking, etc. or by emailing this signed ITR V to the processing centre in Bengaluru.

Individuals can avail exemptions on their income tax for various investments such as home loans. Here they can avail home loan tax benefits under Section 80C, 24(b) and 80EEA of the IT Act.

Section 80C: Under this section, borrowers can avail tax benefit on the principal amount, registration charges, and stamp duties. Additionally, individuals can enjoy tax benefits on a joint home loan.
Section 24(b): Borrowers can avail tax benefits on the interest paid on home loans under this section.
Section 80EEA: First-time homeowners can avail additional tax benefits under this section.

Filing Income Tax return on time according to the specific income tax slabs is vital. The government has made it mandatory for citizens over the annual income of Rs.2.5 lakh to file income tax return.