Mon. Jul 22nd, 2019

Income tax slabs for Financial Year 2019 – 2020

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Income tax slabs

Income Tax slabs for Financial Year 2019-20

Income tax is the direct tax which is paid by an individual against the income that he or she draws during a given period of time. The income tax slabs include the income range and rates at which the direct tax is charged on the income earned.

The interim Budget for financial year 2019-20 was announced recently on 1 February 2019 by the acting Finance Minister Piyush Goyal. Although there were some important announcements, it should be noted that no changes were made in the tax slabs. Thus, the tax slabs announced in Budget 2018 will be effective for 2019-20 as well. However, the Minister has announced a full rebate under Section 87A of the Income Tax Act for individuals who draw an income of up to Rs.5 lakh. He has also announced an increase of Rs.10,000 in the standard deduction. Thus, the effective standard deduction for the financial year 2019-20 will be Rs.50,000. He has also notified that individuals with an annual gross income of Rs.6.5 lakh will be eligible for complete tax exemption, provided they have investments such as insurance, provident funds, and other specified savings schemes. For more information about Income Tax Slabs for Financial Year 2019-20 Visit banbanbazaar.com.

Income tax slabs for Financial Year 2019 – 2020 and Assessment Year 2020 – 2021

The age of a taxpayer and the income drawn by him or her are two of the most important factors that are taken into consideration for setting up the income tax slabs. On the basis of these factors, there are three different types of individual taxpayers and one for domestic companies. They are as follows:

  • Individuals and Hindu Undivided Families (HUFs) who are less than 60 years old
  • Senior Citizens, i.e. the individuals whose age is 60 years old or more, but does not exceed 80 years old
  • Senior Citizens, i.e. the individuals whose age is 80 years old or more
  • Domestic Companies

On the basis of these above-mentioned categories, the tables listed below contain the income tax rates and slabs that are applicable for the assessment of tax liability of an assessee.

Income Tax slabs applicable for financial year 2019-20:

1) Individuals and Hindu Undivided Family (HUF) less than 60 years old – Part (I):

Annual Income Tax Rates Health and Education Cess
Up to Rs.2.5 lakh Nil Nil
Rs.2,50,001-Rs.5 lakh 5% 4% of Income Tax
Rs.5,00,001-Rs.10 lakh 20% 4% of Income Tax
Above Rs.10 lakh 30% 4% of Income Tax

Surcharge:

1) If the total income is Rs.50 lakh or more but does not exceed Rs.1 crore, the surcharge is calculated at the rate of 10% of the income tax.

2) If the total income exceeds the mark of Rs.1 crore, the surcharge is calculated at the rate of 15% of the income tax.

Exemption Limit: The income tax exemption limit is up to Rs.2.5 lakh for individuals and Hindu Undivided Family (HUF) except for those who are covered under Part (II) or Part (III) for the Financial Year 2019-2020.

2) Senior Citizens who are 60 years old or higher, but less than 80 years old – Part (II):

Annual Income Tax Rates Health and Education Cess
Up to Rs.3 lakh Nil Nil
Rs.3,00,001-Rs.5 lakh 5% 4% of Income Tax
Rs.5,00,001-Rs.10 lakh 20% 4% of Income Tax
Above Rs.10 lakh 30% 4% of Income Tax

Surcharge:

1) If the total income is Rs.50 lakh or more but does not exceed Rs.1 crore, the surcharge is calculated at the rate of 10% of the income tax.

2) If the total income exceeds the mark of Rs.1 crore, the surcharge is calculated at the rate of 15% of the income tax.

Exemption Limit: The income tax exemption limit is up to Rs.3 lakh for individuals and Hindu Undivided Family (HUF) except for those who are covered under Part (I) or Part (III) for the Financial Year 2019-2020.

3) Senior Citizens who are 80 years old or more – Part (III):

Annual Income Tax Rates Health and Education Cess
Up to Rs.5 lakh Nil Nil
Rs.5,00,001-Rs.10 lakh 20% 4% of Income Tax
Above Rs.10 lakh 30% 4% of Income Tax

Surcharge:

1) If the total income is Rs.50 lakh or more but does not exceed Rs.1 crore, the surcharge is calculated at the rate of 10% of the income tax.

2) If the total income exceeds the mark of Rs.1 crore, the surcharge is calculated at the rate of 15% of the income tax.

Exemption Limit: The income tax exemption limit is up to Rs.5 lakh for individuals and Hindu Undivided Family (HUF) except for those who are covered under Part (I) or Part (II) for the Financial Year 2019-2020.

4) Domestic Companies – Part (IV):

Turnover Particulars Tax Rate
If the gross turnover in the previous year does not exceed Rs.250 crore 25%
If the gross turnover in the previous year exceeds the mark of Rs.250 crore 30%

Additional rates which are applicable:

Cess: 4% of the corporate tax

Surcharge:

1) If the taxable income is more than Rs.1 crore but does not exceed Rs.10 crore, the surcharge will be applicable at the rate of 7%.

2) If the taxable income is more than Rs.10 crore, the surcharge will be applicable at the rate of 12%.

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