Income Tax Slab Rates in India for Financial Year 2019-20

Income Tax Slabs Tax rates for Individual and HUF below 60 

For an income up to 2,50,000

Nil

For an income above 2,50,000 and up to 5,00,000

5% of the income in excess of 2,50,000

For an income above 5,00,000 and up to 10,00,000

12,500 + 20% of the income in excess of 5,00,000

For an income above 10,00,000

1,12,500 + 30% of the income in excess of 10,00,000

  • Individuals earning an annual income of up to 2,50,000 do not have to pay any income tax.
  • For individuals having an annual income of 2,50,001 up to 5,00,000, the income tax payable is 0% to 5% of the income in excess (for different age groups).
  • Individuals having an annual income of 5,00,001 to 10,00,000, the tax payable is 12,500 plus 20% of the income in excess of 5,00,000.
  • Those who are earning an annual income of above 10,00,000, have to pay a tax of 1,12,500 plus 30% of the income in excess of 10,00,000.

Note: With a host of benefits introduced in the Union Budget 2019 for electric vehicle owners, India has joined governments in Europe and China that have backed the development of the nascent electric vehicle industry by offering extensive financial incentives. The finance minister in the latest budget has announced a tax rebate of up to 1.5 Lakh on the interest amount paid on loans to purchase electric vehicles.

What is the Income Tax?

For an income from either a business or by way of salary, a tax is collected by the Government. The tax collected on such income is the Income Tax. Income tax is a progressive tax since it varies with the income generated. If the income is higher, the tax levied will be high and if it is low then the tax levied will be low. The law requires the taxpayers to file Income Tax Returns every year to assess their obligations towards tax. This is a regular source of income for the Government. These funds are utilised towards government obligations, public services, and for various developmental projects.

What are the Income Tax Rates and Slabs?

A slab system is applied in India to collect tax from individuals who are taxpayers. The tax rates applicable will vary with each slab. If the income slab increases, then these tax rates also increase.

These slabs are amended during each budget.

Since the 2018 Union Budget has not declared any changes, the slabs for this year remain the same as that of the last year.

Individual taxpayers come under 3 different categories:

  • Resident and Non-Resident Indians (NRIs) who are below 60 years of age
  • Resident Senior Citizens who belong to the age group between 60 years to 80 years
  • Resident Super Senior Citizens who are aged above 80 years

General Outlines for Income Tax Rates and Slabs for Assessment Year 2019-20

The general outlines for income tax slab rates and slabs for Assessment Year (AY) 2019-20 are:

  • For a total income up to 2,50,000 tax is not applicable
  • For a total income above 2,50,000 and up to 5,00,000, the tax rate is between 0-5% depending on the age-group.
  • For a total income of more than 5,00,000 and up to 10,00,000 the tax rate applicable is 20%
  • For a total income of more than 10,00,000 the tax rate applicable is 30%

An amount of 1.50 Lakhs invested under 80CC can get a tax rebate up to 46,800.

Income Tax Slabs and Rates for AY 2019-20

The slabs applicable for Individuals who are below 60 years and HUF for the AY 2019-20

The applicable slabs for Hindu Undivided Family (HUF) and Individuals who below 60 years for the AY 2019-20 are as mentioned below:

Income Tax Slab Tax rates for Individual and HUF taxpayers who are below 60 years of age

For an income up to 2,50,000

Nil

For an income above 2,50,000 and up to 5,00,000

5% of the income in excess of 2,50,000

For an income above 5,00,000 and up to 10,00,000

12,500 + 20% of the income in excess of 5,00,000

For an income above 10,00,000

1,12,500 + 30% of the income in excess of 10,00,000

  • Health and Education Cess is applicable at 4% on the tax amount arrived at, as per the calculation above.
  • If the total income is more than 50 Lakhs and up to 1 Crore surcharge is applicable at 10% of the income tax so arrived.
  • If the total income is more than 1 Crore, a surcharge is applicable at 15% of the income tax so arrived.

An investment up to 1.50 Lakhs under 80CC can earn a tax rebate of 46,800

The slabs applicable for Senior Citizens between 60 to 80 years old for the AY 2019-20

The slabs applicable for Senior Citizens who belong to the age group between 60 to 80 years of age are as mentioned below:

Income Tax Slab Tax rates for Senior Citizens in the age group between 60 years and 80 years

For an income up to 3,00,000

Nil

For an income above 3,00,000 and up to 5,00,000

5%

For an income above 5,00,000 and up to 10,00,000

20%

For an income above 10,00,000

30%

  • A health and education cess to the extent of 4% is applicable on the amount calculated as tax as per the slab mentioned above.
  • When the total income is more than 50 Lakhs and up to 1 Crore, surcharge applicable will be 10% of the income-tax
  • When the total income is more than 1 Crore, a surcharge will be 12% of the income tax

An investment under 80C up to 1.50 Lakhs will earn you a tax rebate of 46,800.

The slabs applicable for AY 2019-20 for Super Senior Citizens 80 years old and above

The slabs applicable for AY 2019-20 for Super Senior Citizens who are above 80 years of age are as mentioned below:

Income Tax Slab Tax rates for Super Senior Citizens who are above 80 years of age

For an income up to 5,00,000

Nil

For an income above 5,00,000 and up to 10,00,000

20%

For an income above 10,00,000

30%

  • On the tax amount calculated according to the above slab, a Health and education cess at 4% is applicable.
  • For an income that is more than 50 Lakhs and up to 1 Crore, a surcharge at 10% on the income tax is applicable.
  • For an income that is more than 1 Crore, a surcharge at 15% on the income tax is applicable

Income tax slabs for Domestic Companies for AY 2019-20

Income Tax slabs for Domestic Companies for AY 2019-20 are as mentioned below:

Income Tax Slab Tax rates for Domestic Companies

For a gross turnover up to 2.50 Crores pertaining to the preceding year

25%

For a gross turnover above 2.50 crores pertaining to the preceding year

30%

  • Health and Education Cess is applicable at 4% on the corporate tax arrived at as per slabs mentioned.
  • If the total income is more than 1 Crore and up to 10 Crores the surcharge applicable is 7%
  • If the total income is more than 10 Crores, the surcharge applicable is 12%

An investment made under 80C up to 1.50 Lakhs will fetch you a tax rebate of 46,800.

Income tax slabs for Foreign Entity Companies for the AY 2019-20

The income tax slabs for Foreign Entity Companies for the AY 2019-20 is as mentioned below:

Type of Income Tax Rate

If a foreign company having operations in India executes an agreement with Indian concern and receives compensation from the Indian Government in the form of royalty against such agreement which amounts to income.

50%

If the foreign company having operations in India receives income in the form of fees any technical service rendered.

50%

Income by any other means earned by the foreign company having operations in India.

40%

Latest News Snippets

24-05-2019: After the amendment in Form 15H, higher TDS exemption on the income by way of interest to Senior Citizens

Senior Citizens who have a taxable income of 5 Lakhs can now as per official notification given by CBDT claim exemption on interest earned on deposits by submitting form 15H at post offices and banks. The limit for seeking TDS exemption earlier was 2.50 Lakhs. Form 15H will be accepted by the banks from Senior Citizens with an income up to 5 Lakhs after claiming the rebate under Section 87A which is increased from 2,500 to 12,500.

30-04-2019: Customers of SBI can pay taxes through onlinesbi.com with their ATM cum debit cards

SBI has provided the facility of paying taxes online for their customers to make the process of tax payment easy and convenient. Customers who intend to pay their taxes online can visit the official website of SBI and complete the process by entering their personal details online as per the guidelines mentioned by the lender.

22-04-2019: Government has made online ITR filing mandatory with an exception for super senior citizens

Henceforth, the filing of ITR should be done online as the Government has made online ITR filing mandatory for each and everyone except the super senior citizens. Earlier individuals with an income below 5 Lakhs with no refund were allowed to file ITR in the paper form. But from FY 2018-19 even for them, it is mandatory to file the ITR online.

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