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Latest Income Tax Slab Rates For Super Senior Citizens FY 2020-21 [AY 2021-22]

Super Senior citizen

Income Tax Slab Rates For Super Senior Citizens

There is a big change in new budget 2020 for senior class.Let us discuss the latest income tax slab rates for super senior citizens FY 2020-21.

Income rates has been reduced and slab rates have been separated into 7 parts.Upto 15 lakhs amount these changes are made.

Big change

Budget 2020 has proposed a big change in terms of New Tax Regime.

That means if you want to calculate your tax under new Income tax rates for FY 2020-21,you can not claim any deductions out of 70 deductions.

And also you will have the option to calculate your tax as per old tax rates (Old Tax Regime FY 2019-20),in case you are not satisfied with new tax slab rates FY 2020-21 .

But there are very few deduction which are still claimable.

Check them out the deductions which are still available to be claimed.

 

Budget 2020 changes

The following are the changes that you will see in new budget 2020.

  • 70 deductions,exemptions are withdrawn.
  • Standard deduction of ₹ 50,000 is not available.
  • Income tax. Rebate of ₹ 12,500 is available.
  • New slab rates are same for all tax payers including salaried employees,senior citizens and super senior citizens.

New tax slab rates for super senior citizens (Age >= 80 years)

Total Income
In FY 2020-21
New Tax regime
For Super Sen.Citizens
Age(>=80)
Total Income
In FY 2019-20
Old Tax Regime
For Sen.Citizens
Age(>=80)
0-250,000Nil0-5,00,000Nil
250,001-5,00,0005%
5,00,001-7,50,00010%5,00,001-7,50,00020%
7,50,001-10,00,00015%7,50,001-10,00,00030%
10,00,001-12,50,00020%10,00,001-12,50,00030%
12,50,001-15,00,00025%12,50,001-15,00,00030%
Above 15,00,00030%Above 15,00,00030%

Calculate Income tax Under New Tax Regime

Suppose your gross pension for FY 2020-21 is 8 lakhs.

No standard deduction of ₹ 50,000 and saving from 80C to 80U are applicable.

Thus your taxable income remains ₹  8 lakhs.

So in case of taxable income being greater than 5 lakhs,there will be no tax rebate under section 87A.

Hence as per tax slab rates for senior citizens FY 2020-21:

0-250,000 = nil tax.

250,001-500,000 = @5% of 250,000= ₹ 12,500.

500,001-750,000 = 10% of 250,000 = ₹ 25,000.

750,001-8,00,000 = 15% of 50,000 =₹ 7500

So your total tax is ₹ 45000.

Now health and education cess  4% of  ₹ 45,000 = 1800.

Hence your total tax liability is ₹ 46,800

Tax calculation for Super senior citizens under old tax regime

Suppose your gross pension for FY 2020-21  is 8 lakhs.

Deduct standard deduction of ₹ 50,000 and saving from 80C to 80U ( suppose it to be ₹ 150,000).

Also read : Latest income tax slab rates for govt employees FY 2020-21

Thus your taxable income becomes ₹ 6 lakhs.

So in case of taxable income being greater than 5 lakhs,there will be no tax rebate under section 87A.

Hence as per tax slab rates for super senior citizens FY 2019-20 :

0-500,000 = nil tax.

500,001-600,000 = 20% of 100,000 = ₹ 20,000.

So your total tax is ₹ 20,000.

Now health and education cess  4% of  ₹ 20,000 = 800.

Hence your total tax liability is ₹ 20,800.

Which tax regime is better

Under new tax regime,you have the option of choosing either old tax regime or new tax regime.

If you are dissatisfied with new tax rates,you can opt for old tax rates of FY 2019-20.

From the above two examples,it is crystal clear that there is a loss of ₹ 26,800,if you calculate your tax according to new tax rates.

So you should follow the old tax regime.

Also read : Income Tax Slab Rates For Senior Citizens FY 2020-21

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

Click Here to Leave a Comment Below 1 comments
Kuldeep Singh - May 12, 2020

Great article

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