Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before taking any decision based on the information below.
IN UNIT LINKED INSURANCE PLANS, THE INVESTMENTS RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

Income Tax Slabs & Rates

The Finance Minister introduced a new tax regime in Union Budget, 2020 wherein there is an option for individuals and HUF (Hindu Undivided Family) to pay taxes at lower rates without claiming deductions under various sections. The following Income Tax slab rates are notified in the new tax regime vs the old tax regime:

As per Old tax regime

Income tax slab Income tax rate
Up to ₹ 2,50,000 No tax
₹ 2,50,001 to ₹ 5,00,000 5% above ₹ 2,50,000
₹ 5,00,001 to ₹ 10,00,000 ₹ 12,500 + 20% above ₹ 5,00,000
Above ₹ 10,00,000 ₹ 1,12,500 + 30% above ₹ 10,00,000

As per New tax regime

Income tax slab Income tax rate
Up to ₹ 3,00,000 No tax
₹ 3,00,001 to ₹ 6,00,000 5% above ₹ 3,00,000
₹ 6,00,001 to ₹ 9,00,000 ₹ 15,000 + 10% above ₹ 6,00,000
₹ 9,00,001 to ₹ 12,00,000 ₹ 45,000 + 15% above ₹ 9,00,000
₹ 12,00,001 to ₹ 15,00,000 ₹ 90,000 + 20% above ₹ 12,00,000
Above ₹ 15,00,000 ₹ 1,50,000 + 30% above ₹ 15,00,000

New tax regime slab rates are not differentiated based on age group. However, under the old tax regime, the basic income threshold exempt from tax for senior citizens (aged 60 to 80 years) and super senior citizens (aged above 80 years) is ₹ 3 lakh and ₹ 5 lakh respectively.

Every person has to make his/her own calculation as per the old and new tax regimes and calculate which one is beneficial based on the type of investments made and returns earned on those investments.

Consider an example, a person aged 35 years has a total income of Rs. 11,00,000/- and invested under Section 80C of Rs. 1,50,000/- and under Section 80CCD of Rs. 50,000/-. He has claimed income tax deduction with medical and leave travel allowance of Rs. 50,000/- and HRA of Rs. 1,50,000/-. The tax payable under new and old tax regimes are as follows:

 
Particulars New regime Old regime
Gross Total Income(after standard deduction of ₹ 50,000 under the head “Salary”) ₹ 11,00,000 ₹ 11,00,000
Less: Deductions under Section 80C ₹ 0 ₹ 1,50,000
Less: Deduction under Section 80CCD(1B) ₹ 0 ₹ 50,000
Taxable Income ₹ 11,00,000 ₹ 9,00,000




✅ What is taxable* income in India?

Taxable income in India refers to the income of an individual or an organisation on which the government levies tax. It is calculated as after deducting the deductions eligible under the Income Tax Act, 1961 from the income earned by an individual or an organisation

✅ Is the due date for filing tax return same for all taxpayers?

No, the due date for filing an income tax return is not the same for all taxpayers. In case of Individuals & HUF, who are not required to get audited under the Income Tax Act, 1961 the due date for filing the return is July 31st and for others, it is October 31st.

✅ What is the time period considered for the purposes of income tax?

Income Tax is calculated on annual basis in India. It is calculated for the financial year starting from April 1 and ending on March 31.

✅ Do I need to file Income Tax Return (ITR) if my annual income is below ₹ 2.5 lakh?

The taxation process is dependent on a number of factors. Please get in touch with a personal tax advisor.

✅ Are there separate slab rates for males and females?

No. The slab rates for males and females are the same.

✅ Are there separate slab rates for different age groups?

Yes. There are separate slab rates for taxpayers aged below 60 years, between 60 to 80 years (senior citizens) and above 80 years (super senior citizens).

✅ Will my income be taxed if I am an agriculturist?

The agricultural income is exempt from the income tax. However, if an agriculturist has non-agricultural income, then it would be taxable.

COMP/DOC/Dec/2021/2712/7143

 

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This is only a provisional certificate and this does not communicate acceptance or commencement of risk under the proposal submitted by you. This document may be used as a proof for claiming deductions while filing your tax returns subject to provisions of relevant tax sections and acceptance of risk, i.e. on policy issuance by the company. For any confirmation/impact analysis customer is advised to refer the matter to his Tax consultant.

*Tax benefits under the policy are subject to conditions under Sections 80C, 80D, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services Tax and Cesses, if any, will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details.

Unlike traditional products, Unit Linked Insurance Products are subject to market risk, which affects the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or Fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.

Please note that the tax write-up above is for general understanding and reference. The reader will have to verify the facts, law and content with the prevailing tax statutes and seek appropriate professional advice before acting on the basis of the above information. Tax benefits/savings are subject to conditions of Sections 80C, 80CCC, 80CCE, 10(10A), 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. ICICI Prudential Life Insurance Company Limited expressly disclaims any liability to any person, if tax benefits stated above are denied to the customer.

Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details.

`Source: http://economictimes.indiatimes.com/wealth/tax/latest-income-tax-slabs/articleshow/56201289.cms

ADVT No - W/II/3266/2018-19

COMP/DOC/Feb/2020/62/3202

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