Latest Income Tax Slab and Rates for Financial year 2019-20

Income tax slab rates specify the threshold annual income limits at which a higher or lower rate of tax is applicable. In India, Income Tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab. Such tax slabs tend to undergo a change during every budget.

The basic exemption limit for an individual depends on his/her age as well as his/her residential status.

Further, since the budget 2018 has not announced any changes in income tax slabs this time, it remains the same as that of last year.

According to age, resident individual taxpayers are divided into three categories:
1. Resident individuals below the age of 60 years
2. Resident senior citizens of age between 60 years and above but below 80 years
3. Resident super senior citizens of above 80 years of age 

New Income Tax Slabs and Rates for Financial Year 2019-20

  1. For individuals below the age of 60 years:
    • If annual income is up to Rs 2.5 Lakhs, there is no tax.
    • If annual income is between Rs 2.5 Lakhs to Rs 5 Lakhs, the tax rate is 5% of total income exceeding  Rs 2.5 Lakhs.
    • If annual income is between Rs 5 Lakhs to Rs 10 Lakhs, the tax rate is 20% of total income exceeding Rs 5 Lakhs + Rs 12,500.
    • If annual income is Rs 10 Lakhs or more, the tax rate is 30% of total income exceeding Rs 10 Lakhs + Rs 1,12,500
    • Surcharge: 10% of income tax, where total income exceeds Rs 50 lakh up to Rs 1 crore.
    • Surcharge: 15% of income tax, where the total income exceeds Rs 1 crore.
    • An additional 4% Health & education cess will be applicable to the tax amount calculated as above.
  2. For Senior Citizens between the age of 60 to 80 years:
    • If annual income is up to Rs 3 Lakhs, there is no tax.
    • If annual income is between Rs 3 Lakhs to Rs 5 Lakhs, the tax rate is 5% of total income exceeding  Rs 3 Lakhs.
    • If annual income is between Rs 5 Lakhs to Rs 10 Lakhs, the tax rate is 20% of total income exceeding Rs 5 Lakhs + Rs 10,000.
    • If annual income is Rs 10 Lakhs or more, the tax rate is 30% of total income exceeding Rs 10 Lakhs + Rs 1,10,000.
    • Surcharge: 10% of income tax, where total income exceeds Rs 50 lakh up to Rs 1 crore
    • Surcharge: 15% of income tax, where the total income exceeds Rs 1 crore.
    • An additional 4% Health & education cess will be applicable to the tax amount calculated as above.
  3. For Senior Citizens above the age of 80 years:
    • If annual income is up to Rs 5 Lakhs, there is no tax.
    • If annual income is between Rs 5 Lakhs to Rs 10 Lakhs, the tax rate is 20% of total income exceeding Rs 5 Lakhs.
    • If annual income is Rs 10 Lakhs or more, the tax rate is 30% of total income exceeding Rs 10 Lakhs + Rs 1,00,000.
    • Surcharge: 10% of income tax, where total income exceeds Rs 50 lakh up to Rs 1 crore.
    • Surcharge: 15% of income tax, where the total income exceeds Rs 1 crore.
    • An additional 4% Health & education cess will be applicable to the tax amount calculated as above.

Leave a Reply

Your email address will not be published. Required fields are marked *