Income Tax Slabs for Individual taxpayer for Financial Year 2019-20 (A.Y. 2020-21) |

 

Income Tax Slabs for Individual taxpayer for Financial Year 2019-20 (A.Y. 2020-21)

Slab rates are ranges of incomes according to which government imposes tax

Every year slab rates can be changed. If there are changes in slab rates for the F.Y. then they are introduced in the Budget for that year and presented in Parliament

Here’s the Income Tax Slabs for the financial year 2019-20 (Assessment Year 2020-21).

General

Till 2,50,000 – 0%

2,50,001 ~ 5,00,000 – 10%

5,00,001 ~ 10,00,000 – 20%

Above 10,00,000 – 30%

Senior Citizen (Between 60 & 80 years)

Till 3,00,000 – 0%

3,00,001 ~ 5,00,000 – 10%

5,00,001 ~ 10,00,000 – 20%

Above 10,00,000 – 30%

Very Senior Citizen (Above 80 years)

Till 5,00,000 – 0%

5,00,001 ~ 10,00,000 – 20%

Above 10,00,000 – 30%

By applying above rates on Net Total Income, you got Tax payable amount.

Note:

There is no separate tax slab for women.

Surcharge:

A surcharge is also applicable slab wise.  

Surcharge rates are as follows:

If the income is:

Till Rs.50 lakhs – No Surcharge;

Above Rs.50lakhs ~ Rs.1crore – 10% surcharge;

Above Rs.1crore ~ Rs.2crore – 15% surcharge;

Above Rs.2crores ~ Rs.5crore – 25% surcharge ;

Above Rs. 5 crore ~ 37% surcharge.

The surcharge is calculated on the Tax amount.

Health & Education Cess:

An Health and education cess of 4% is applicable to the income tax plus surcharge.

This is compulsory to be applied in case of all assessees

Then, Surcharge and Health and education Cess is added to the tax payable.

Eligibility for 87A rebate

87A Rebate available to the individual taxpayer whose income is not more than Rs. 5,00,000

87A Rebate Amount: - 

12,500 or 100% of Tax Amount

Which ever is Lower 

Net income should be less than 5,00,000

It is deductible from tax payable amount before calculating education cess.

80TTA: 

Upto Rs.10,000 deductions is available for Interest on saving account. 

All individual taxpayer and HUF can avail this deduction.

Saving interest income greater than Rs.10,000 will be taxable.

Saving account can be with Banks, Post offices, co-operative societies

Interest on deposits from Companies or NBFC will not be eligible for deduction under this section.

However, in case of senior citizen, 80TTB applies, according to which, senior citizen can claim bigger deduction of Rs. 50,000 and senior citizen can claim FD interest also as deductions unlike 80TTA which allow only saving interest deductions.

Disclaimer: 

The above article is meant for informational purpose only and does not purport to be advice or opinion, legal or otherwise, whatsoever. While due care has been taken during the compilation of this article to ensure that the information is accurate to the best of our knowledge and belief, the contents of such article do not substitute for professional advice that may be required. The individual expressly disclaims all and any liability to any person who has read this document or otherwise, in respect of anything, and of consequences of anything done, or omitted to be done by any such person in reliance upon the contents of this article.