“We Loan4dreams.com provides Income Tax Return (ITR) filing services for all the salaried employees. It is a completely online process wherein salaried people don’t need to go anywhere, they just need to upload the required documents, and then our team of qualified CA’s will evaluate & file accurate ITR according to the information you provide at the earliest. Loans4dreams.com has provided a piece of comprehensive information about INCOME TAX RETURN SLAB 2020-21 FOR SALARIED EMPLOYEE.”
On 1st Feb 2020, Nirmala Sitharaman, the Finance Minister of India presented the Union Budget and introduced the new income tax slab. The New income tax regime was introduced for regular individuals, Senior citizens, Super Senior Citizens, and HUF, Wherein they can pay taxes at lower income tax slab rates. The income tax rates depend upon the annual income and age of the taxpayer.
By knowing the income tax slab, our subscribers like a private employee, corporate employee, government employee, state government employee, central government employee, etc will be able to calculate the total tax they need to pay to the government this financial year 2020-21
New Income Tax Slab for FY 2020-21 (AY 2021-22) for Salaried Employee:-
| Annual Income | New Tax Rate FY 2020-21 | Old Tax Rate FY 2019-20 |
| Upto Rs 2.5 Lacs | Exempted | Exempted |
| Rs 2.5 Lacs – Rs 5 Lacs | 5 % | 5 % |
| Rs 5 Lacs – Rs 7.5 Lacs | 10 % | 20 % |
| Rs 7.5 – Rs 10 Lacs | 15 % | 20 % |
| Rs 10 Lacs – Rs 12.5 Lacs | 20 % | 30 % |
| Rs 12.5 – Rs 15 Lacs | 25 % | 30 % |
| Above Rs 15 Lacs | 30 % | 30% |
Note 1:- Rebate U/S 87A – A resident individual (whose Net income doesn’t exceed Rs 5,00,000 can avail rebate under this section. It is deductible from income tax before calculating education cess. The Amount of the rebate is 100 % of income tax or Rs 12,500 whichever is less.
Note 2:- The option to pay tax at lower rates shall be available only if the total income of assesse is computed without claiming specified exemptions or deductions compared to last year tax slab i.e. FY 2019-20
New Income Tax Slab for Senior Citizens in 2020-21
Tax payers above 60 years of age & less than 80 years of age are considered as Senior Citizens as per the Income Tax Act 1961. There is no change introduced in the income tax rates for senior citizens as compared to previous year i.e. FY 2019-20
| Annual Income | New Tax Rate FY 2020-21 | Old Tax Rate FY 2019-20 |
| Upto to Rs 3 Lacs | Exempt | Exempt |
| Rs 3 Lacs – Rs 5 Lacs | 5 % | 5 % |
| Rs 5 Lacs – Rs 7.5 Lacs | 10 % | 20 % |
| Rs 7.5 Lacs – Rs 10 Lacs | 15 % | 20 % |
| Rs 10 Lacs – Rs 12.5 Lacs | 20 % | 20 % |
| Rs 12.5 Lacs – Rs 15 Lacs | 25 % | 30 % |
| Above 15 Lacs | 30 % | 30 % |
Note 1:- A resident individual (whose net income does not exceed Rs 5, 00,000 can avail rebate under section 87A. It is deductible from income tax before calculating education cess. The amount of rebate is 100 % of income tax or Rs 12,500 whichever is less.
Note 2:- The option to pay tax at lower rates shall be available only if the total income of assesse is computed without claiming specified exemptions or deductions compared to last year tax slab i.e. FY 2019-20