In India, income tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab.
Existing tax regime:
There are three categories of individual taxpayers: Individuals (below 60), Resident senior citizens (60-80), Resident super senior citizens (80+).
New tax regime (FY 2020-21):
| Income Tax Slab | Tax Rate |
|---|---|
| Up to Rs 2.5 lakh | NIL |
| Rs 2.5-5 lakh | 5% |
| Rs 5-7.5 lakh | 10% |
| Rs 7.5-10 lakh | 15% |
| Rs 10-12.5 lakh | 20% |
| Rs 12.5-15 lakh | 25% |
| Above Rs 15 lakh | 30% |
Note: This article also covers historical FY 2018-19 and FY 2019-20 slabs for individuals, senior citizens, super senior citizens, and domestic companies, plus applicable surcharge and cess rates. [Full historical detail retained on file; condensed here for migration.]