Income Tax Rates for Financial Years 2020-21 ( Assessment years 2021-22)
(i)(Resident or Non-Resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
Net Income Tax RangeIncome Tax Rate
Upto Rs. 2,50,000 Nil.
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,00020%
Above Rs. 10,00,00030%
(ii)Senior Citizens age 60 yrs to less than 80 yrs
Upto Rs. 3,00,000 Nil.
Rs. 3,00,001 to Rs. 5,00,0005%
Rs. 5,00,001 to Rs.10,00,00020%
Above Rs. 10,00,000 30%
(ii)Senior Citizens age 80 yrs and above.
Upto Rs. 5,00,000 Nil.
Rs. 5,00,001 to Rs. 10,00,00020%
Above Rs. 10,00,000 30%

Add: a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-
Rate of Surcharge
Financial Years 2020-21 ( Assessment years 2021-22)
Range of Income
Rs. 50 Lakhs to Rs. 1 Crore Rs. 1 Crore to Rs. 2 Crores Rs. 2 Crores to Rs. 5 Crores Rs. 5 crores to Rs. 10 Crores Exceeding Rs. 10 Crores
10%15%25%37%37%

Note:
The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

However, marginal relief is available from surcharge in following manner-


b. Health and Education Cess :
Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Note: 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 per cent of income-tax or Rs. 12,500, whichever is less.

1. Special tax Rate for Individual and HUFs

Note : The option to pay tax at lower rates shall be available only if the total income of assessee is computed without claiming specified exemptions or deductions:

The Finance Act, 2020, has provided an option to Individuals and HUF for payment of taxes
at the following reduced rates from Assessment Year 2021-22 and onwards:


Total Income (Rs) Rate
Up to 2,50,000 Nil
From 2,50,001 to 5,00,000 5%
From 5,00,001 to 7,50,000 10%
From 7,50,001 to 10,00,000 15%
From 10,00,001 to 12,50,000 20%
From 12,50,001 to 15,00,000 25%
Above 15,00,000 30%

Add: a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-
Rate of Surcharge
Financial Years 2020-21 ( Assessment years 2021-22)
Range of Income
Rs. 50 Lakhs to Rs. 1 Crore Rs. 1 Crore to Rs. 2 Crores Rs. 2 Crores to Rs. 5 Crores Rs. 5 crores to Rs. 10 Crores Exceeding Rs. 10 Crores
10%15%25%37%37%

Note:
The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

However, marginal relief is available from surcharge in following manner-


b. Health and Education Cess :
Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Note: 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 per cent 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 assessee is computed without claiming specified exemptions or deductions:
[As amended by Finance Act 2020 ]