Income Tax Slabs 2020-21(AY 2021-22)

Income Tax Slabs for individuals below 60 years of age under new tax regime – Applicable to FY 2020-21 (AY 2021-22)

• The tax calculated on the basis of such rates will be subject to health and education cess of 4%.
• Any individual opting to be taxed under the new tax regime from FY 2020-21 on wards will have to give up certain exemptions and deductions.
• Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.
  1. Leave Travel Allowance (LTA)
  2. House Rent Allowance (HRA)
  3. Conveyance
  4. Daily expenses in the course of employment
  5. Relocation allowance
  6. Helper allowance
  7. Children education allowance
  8. Other special allowances [Section 10(14)]
  9. Standard deduction
  10. Professional tax
  11. Interest on housing loan (Section 24)
  12. Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)
  13. Without exemption or deduction for any other perquisites or allowances
• Points to remember while opting for the new tax regime:
  1. Option to be exercised on or before the due date of filing return of income for AY 2021-22
  2. In case of a taxpayer having business income, the option once exercised can be withdrawn only once. Further, if the taxpayer withdraws the option, he will never be able to opt-in the option again.
  3. Income Tax Slabs for individuals below 60 years of age under new tax regime – Applicable to FY 2020-21 (AY 2021-22)