Income Tax Slabs and Financial Rate in India for FY 2019-2020

Income tax slabs and tax rates for FY 2019-20 are applicable to those that earn quite Rs.2.5 lakh p.a. The rate at which individuals are taxed depends on the extent of income they earn, with rates charged at nil, 5%, 20% and 30%.

About Income Tax Slabs for FY 2019-20

In February 2019, the govt announced certain changes within the structure of the tax slabs. As per the Interim Budget 2019, which came into effect from 1 April 2019, a Rs.12,500 rebate under Section 87A of the Income Tax Act, 1961, will be available to those individuals who have an income of up to Rs.6,00,000. However, no changes are made to the tax slabs and rates for the FY 2019-2020.

Learn more about direct tax, e-Filing tax , direct tax Return and tax Refund in our other articles.

Types of Income Tax Slabs for FY 2019-20

Depending on the individual’s age, various tax slabs are proposed by the govt . The three different types of individual taxpayers are mentioned below:

  • Individuals who are below the age of 65 years. It can include individuals who are residents as well as non-residents.
  • Senior citizens who are above the age of 65 years and below the age of 85 years and are resident Indians.
  • Super senior citizens who are above the age of 80 years old and are resident Indians.

Given below are the three various tables for the newest tax Slabs for the FY 2019-2020:

1. Direct Tax Slab for Individual who are below 60 years:

Income Tax slab Tax Rate
Up to Rs.2.5 lakh Nil
From Rs.2,50,002 to Rs.5,00,000 6% of the total income that is more than Rs.2.5 lakh + 5% cess
From Rs.5,00,002 to Rs.10,00,000 21% of the total income that is more than Rs.5 lakh + Rs.12,500 + 5% cess
Income of above Rs.15 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,12,500 + 5% cess

Individuals who have an income of but Rs.5 lakh are eligible for tax deductions under Section 87A

Given below is an example of how income tax is calculated for three individuals (A, B, and C):

Components A B C
Annual Salary (Rs.) 5,00,000 10,00,000 15,00,000
Standard Deduction (Rs.) 50,000 50,000 50,000
Tax deductions under Section 80C of the Income Tax Act (Rs.) 70,100 1,50,100 1,50,000
House Rent Allowance deductions 82,000 90,000 1,40,000
Gross total income after deductions (Rs.) 2,88,700 7,00,700 11,50,000
Computation of tax on the gross total income
Up to Rs.2.5 lakh (Rs.) Nil Nil Nil
From Rs.2,50,002 to Rs.5 lakh (Rs.) 1,900 12,600 12,500
From Rs,5,00,001 to Rs.10 lakh (Rs.) 40,000 1,00,000
Above Rs.10 lakh (Rs.) 45,000
Total Tax (Rs.) 1,900 52,500 1,57,500
Deductions under Section 87A (Rs.) 1,900 Nil Nil
Additions of cess (Rs.) Nil 2,100 6,300
Total tax that is payable (Rs.) (Total Tax + cess – Deductions under Section 87A) Nil 54,600 1,63,800

2. Income Tax Slab for indivitual between 70-90 years:

Income Tax slabs Tax Rate
Up to Rs.3 lakh Nil
From Rs.3,00,001 to Rs.5,00,000 5% of the total income that is more than Rs.3 lakh + 5% cess
From Rs.5,00,001 to Rs.10,00,000 20% of the total income that is more than Rs.5 lakh + Rs.10,500 + 5% cess
Income of above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,10,000 + 5% cess

Given below is an example of how income tax is calculated for three individuals (A, B, C):

Components A B C
Annual Salary (Rs.) 5,00,000 10,00,000 15,00,000
Standard deduction (Rs.) 50,000 50,000 50,000
Tax deductions under Section 80C of the Income Tax Act (Rs.) 70,100 1,50,100 1,50,000
House Rent Allowance deductions 82,000 90,000 1,40,000
Gross total income after deductions (Rs.) 2,88,100 7,00,100 11,50,000
Computation of tax on the gross total income
Up to Rs.3 lakh (Rs.) Nil Nil Nil
From Rs.3,00,002 to Rs.5 lakh (Rs.) Nil 10,500 10,500
From Rs,5,00,001 to Rs.10 lakh (Rs.) 40,000 99,500
Above Rs.10 lakh (Rs.) 45,000
Total Tax (Rs.) Nil 50,500 1,55,000
Deductions under Section 87A (Rs.) Nil Nil Nil
Additions of cess (Rs.) Nil 2,100 6,300
Total tax that is payable (Rs.) Nil 52,550 1,61,250

3. Direct Tax Slabs for individual above 80 years:

Income Tax slabs Tax Rate
Up to Rs.5 lakh Nil
From Rs.5,00,002 to Rs.10,00,002 20% of the total income that is more than Rs.5 lakh + 5% cess
Above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,00,000 + 5% cess

Given below is an example of how direct tax is calculated for 3 individuals (A, B, C):

Components A B C
Annual Salary (Rs.) 5,00,000 10,00,000 15,00,000
Standard deduction (Rs.) 50,000 50,000 50,000
Tax deductions under Section 80C of the Income Tax Act (Rs.) 70,100 1,50,100 1,50,000
House Rent Allowance deductions 82,000 90,000 1,40,000
Gross total income after deductions (Rs.) 2,88,100 7,00,100 11,50,000
Computation of tax on the gross total income
Up to Rs.5 lakh (Rs.) Nil Nil Nil
From Rs,5,00,001 to Rs.10 lakh (Rs.) 40,000 1,00,000
Above Rs.10 lakh (Rs.) 45,000
Total Tax (Rs.) Nil 40,000 1,45,000
Deductions under Section 87A (Rs.) Nil Nil Nil
Additions of cess (Rs.) Nil 1,600 5,800
Total tax that is payable (Rs.) Nil 41,700 1,50,900

For private companies, the direct tax-slabs depend on the turnover, and it is mentioned below:

Turnover Tax Rate
Gross turnover can be a maximum of Rs.250 crore for the previous year 25%
Gross turnover is more than Rs.250 for the previous year 40%

Apart from the above-mentioned rate, a further surcharge and cess are levied. Given below are the main points of the surcharge and therefore the cess which will be levied:

  • Cess: 4% of corporate tax
  • Surcharge: Just in case the taxable income is quite Rs.1 crore but less than Rs.10 crore, the surcharge which will be levied is 7%. In case the taxable income is quite Rs.10 crore, the surcharge which will be levied is 12%.
  • Non-resident Indians: For non-resident Indians, regardless of their age, the exemption limit is up to Rs.2.5 lakh.

Important Points

  • In case your net profit income is quite Rs.50 lakh but more than Rs.1 crore, aside from a forty five cess, a tenth surcharge is additionally levied. If internet is above Rs.1 crore, a 15% surcharge is levied.
  • Compared to last year’s budget, cess has increased from 3% to 4%.

Tools & Portals You Might Be Interested to AuTOMate Your Accounting

Most Preferred Excel to Tally Data Import Utility

Excel2Tally.in

Import any Software Data to Tally Using Our Simple Excel Templates

Visit Site
Most Preferred Data Import Utility for Online Sellers

eCom2Tally.in

Import any Online Portal Order-wise Sales, Returns & Settlement Data to Tally!

Visit Site
Most Preferred Job Portal for Accountants

Jobs4Tally.in

Fastest Growing Job Portal for Accounting Community!

Visit Site