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17 Sep 2020

Income Tax calculator

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For any country, taxes collected primarily from its citizens (taxpayers and corporations) are a major source of income, which is essential for a country to function seamlessly. Taxes are made mandatory in many countries and put into development use, which in turn proves to be a benefit for its citizens.

What are taxes?

Taxes are fees levied on individuals (taxpayers) and corporations residing in a country by the governing body of a country, utilized for the purpose of developing a country’s infrastructure and economy. Public expenditures on infrastructure like government schools, colleges, hospitals, roads, military, etc are funded by the taxes collected from the taxpayers.

Taxes are conventionally collected directly (like income tax) and indirectly (such as sales tax paid at the time of purchase of goods or services). Countries like India levy taxes on individuals and corporations on an annual income slab basis.
Taxes are levied on income, capital gains, payroll, wealth, property, inheritance, goods and services, etc.

Revised tax slabs for 2020

Revised Tax slabs for individuals under the age of 60
Annual IncomeIncome Tax Rate as of
FY 2020-21
Rs. 0 to Rs. 250,000NIL
Rs. 250,001 to Rs. 500,0005%
Rs. 500,001 to Rs. 750,000Rs. 12,500 + 10% (total income exceeding
Rs. 500,000)
Rs. 750,000 to Rs. 1,000,000Rs. 37,500 + 15% (total income exceeding
Rs. 750,000)
Rs. 1,000,000 to Rs. 1,250,000Rs. 75,000 + 20% (total income exceeding
Rs. 1,000,000)
Rs. 1,250,000 to Rs. 1,500,000Rs. 125,000 + 25% (total income exceeding
Rs. 1,250,000)
Above Rs. 1,500,000Rs. 187,500 + 30% (total income exceeding
Rs. 1,500,000)

Note: The above slab rates are exclusive of a 4% cess charge.

In the case of High Networth Individuals, the new slab rates are as follows-

Revised Tax slabs for High Networth individuals
Annual IncomeIncome Tax Rate as of
FY 2020-21
Income > Rs. 50 Lakhs and < Rs. 1 crore10%
Income > Rs. 1 crore and < Rs. 2 crores15%
Income > Rs. 2 crores and < Rs. 5 crores25%
Income > Rs. 5 crores37%


The revised income tax slabs for senior citizens aged between 60 years and 80 years are as follows-

Revised Income Tax Slabs for senior citizens between the age of 60 and 80 years
Annual IncomeIncome Tax Rate as of
FY 2020-21
Up to Rs. 300,000NIL
Rs. 300,001 to Rs. 500,0005%
Rs. 500,001 to 1,000,000Rs. 10,000 + 20% (total income exceeding Rs. 500,000)
Above Rs. 1,000,000Rs. 110,000 + 30% (total income exceeding Rs. 1,000,000)
> Rs. 5,000,000 to < Rs. 1 crore10% surcharge
Above Rs. 10,000,00015% surcharge


Note- 4% cess is applicable on income tax and surcharge. Individuals having an annual income of < Rs. 500,000 are eligible for a full tax rebate u/s 87A of the income tax act.

Revised Income Tax slabs for super senior citizens over the age of 80 years are as follows-

Revised Income Tax Slabs for super senior citizens above the age 80 years
Annual IncomeIncome Tax Rate as of
FY 2020-21
Up to Rs. 500,000NIL
Rs. 500,001 to 1,000,00020%
Above Rs. 1,000,000Rs. 100,000 + 30% (total income exceeding Rs. 1,000,000)
> Rs. 5,000,000 to < Rs. 1 crore10% surcharge
Above Rs. 10,000,00015% surcharge


You can also calculate your income tax on our income tax calculator here.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.