Income Tax Slab

The calculation of income tax in India is done based on applying different tax rates to different annual income groups, which are called slabs. For calculating income tax, first of all, actual annual taxable income is calculated as per the provisions of various sections in the Income Tax Act, providing for different income inclusions and exclusions for the same. In the Financial Budget 2019-20, the government has introduced a tax rebate of up to Rs. 12,500 for all individual taxpayers with annual income upto Rs. 5 lakhs.

Current Tax Slab (for tax-payers aged less than 60 years)

Income range per annum Tax Rate FY 2019-20, AY 2020-21 Tax Rate FY 2018-19, AY 2019-20
Up to Rs. 2.5 lakhs No Tax No Tax
Above Rs. 2.5 lakhs to Rs. 5 lakhs 5% + 4% cess 5% + 4% cess
Above Rs. 5 lakhs to Rs. 10 lakhs 20% + 4% cess 20% + 4% cess
Above Rs. 10 lakhs to Rs. 50 lakhs 30% + 4% cess 30% + 4% cess
Above Rs. 50 lakhs to Rs. 1 crore 30% + 10% surcharge + 4% cess 30% + 10% surcharge + 4% cess
Above Rs. 1 crore 30% +15% surcharge + 4% cess 30% +15% surcharge + 4% cess
Rebate under section 87(A) 100% tax rebate subject to maximum of Rs. 2,500 available to resident individual whose total income does not exceed Rs. 3.5 lakhs 100% tax rebate subject to maximum of Rs. 2,500 available to resident individual whose total income does not exceed Rs. 3.5 lakhs

Tax Slab for Senior Citizens (age more than 60 years but less than 80 years FY 2019-20)

Income range per annum Tax Rate FY 2019-20, AY 2020-21 Tax Rate FY 2018-19, AY 2019-20
Up to Rs. 3 lakhs No Tax No Tax
Above Rs. 3 lakh to Rs. 5 lakhs 5% + 4% cess 5% + 4% cess
Above Rs. 5 lakhs to Rs. 10 lakhs 20% + 4% cess 20% + 4% cess
Above Rs. 10 lakhs to Rs. 50 lakhs 30% + 4% cess 30% + 4% cess
Above Rs. 50 lakhs to Rs. 1 crore 30% + 10% surcharge + 4% cess 30% + 10% surcharge + 4% cess
Above Rs. 1 crore 30% +15% surcharge + 4% cess 30% +15% surcharge + 4% cess
Rebate under section 87(A) 100% tax rebate subject to maximum of Rs. 2,500 available to resident individual whose total income does not exceed Rs. 3.5 lakhs 100% tax rebate subject to maximum of Rs. 2,500 available to resident individual whose total income does not exceed Rs. 3.5 lakhs

Tax slabs for Senior Citizens (age more than 80 years FY 2019-20)

Income range per annum Tax Rate FY 2019-20, AY 2020-21 Tax Rate FY 2018-19, AY 2019-20
Up to Rs. 2.5 lakhs per annum No Tax No Tax
Up to Rs. 5 lakhs per annum No Tax No Tax
Above Rs. 5 lakhs to Rs. 10 lakhs 20% + 4% cess 20% + 4% cess
Above Rs. 10 lakhs to Rs. 50 lakhs 30% + 4% cess 30% + 4% cess
Above Rs. 50 lakhs to Rs. 1 crore 30% + 10% surcharge + 4% cess 30% + 10% surcharge + 4% cess
Above Rs. 1 crore 30% +15% surcharge + 4% cess 30% +15% surcharge + 4% cess

For tax rates on capital gains, refer to MyLoanCare Capital Gains tax Slabs Blog

Exempted income

Check if some of your income may be exempted from income tax. Read MyLoanCare exempted income guide.

Tax slabs for Firms and Domestic Companies FY 2019-20

Tax Head Firms Domestic Companies
Income Tax for turnover upto Rs. 400 crores 30% 25%
Income Tax for turnover above Rs. 400 crores 30% 30%
Surcharge as % of income tax 12% of tax in case the total income exceeds Rs. 1 crore
  • 7% of tax in case income is more than Rs. 1 crore but less than Rs. 10 crore.
  • 10% of tax in case income is more than Rs. 10 crore.
Cess as % of tax and surcharge 3% of tax plus surcharge 3% of tax plus surcharge

The above table highlights the latest tax slabs for the firms and domestic companies. The tax treatment in both the cases differs from the tax treatment of individuals and HUFs.

FAQs

What is the income tax rate for 2019?

The latest income tax slab for 2019 is as follows:

Income Slab Tax for individual below 60 years of age
Upto Rs. 2,50,000 NIL
Rs. 2,50,001 to 5,00,000 5%
Rs. 5.00,001 to 10,00,0000 20%
Above Rs. 10,00,000 30%
What is the senior citizen income tax Slab for 2019?

The income tax slab rates applicable to senior citizens for 2019 are:

Income Slab Tax Rate FY 2019-20, AY 2020-21
Upto Rs. 3,00,000 No Tax
Rs. 3,00,001 to 5,00,000 5%
Rs. 5,00,001 to 10,00,000 20%
Above Rs. 10 lakhs 30%
Rebate under section 87(A) 100% tax rebate subject to maximum of Rs. 2,500 available to resident individual whose total income does not exceed Rs. 3.5 lakhs
What is the income limit for income tax as per new slab 2019-20?

The income limit as per new slab 2019-20 to which no income tax is levied is Rs. 2.5 lakhs for individual below 60 years and Rs. 3 lakhs for senior citizens.

Our News - Jan 2020
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