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New Income Tax Slab and Rates FY 2019-2020

Changes Made In The Income Tax Slab

The new income tax slab for the financial year 2019-20 is same as that of the financial year 2018-2019.

According to the Interim Budget passed in 2019, there are some changes made on Rebate under section 87A. According to this, the rebate of worth Rs. 12,500 will be given on taxable income up to Rs.5 lakhs.


In the Financial Year 2019-20, the standard deduction is increased to Rs. 50,000 (In the financial year 2018-19, it was Rs. 40,000 

Because of rebate u/s 87A, you don't have to pay tax on your income up to Rs.5 lakhs or less. 


new income tax slab for 2019-20

The new income tax slab for the resident individual below 60 years of age is given below:


New Income Tax Slabs For Individual Less Than 60 Years Of Age

Income Tax Slab  Income Tax Rate
Up to Rs 2,50,000 Nil
Rs.2,50,001 - Rs.5,00,000 5% of total income
exceeding Rs.2,50,000
Rs.5,00,001 - Rs.10,00,000 Rs.12,500 + 20% of total income
exceeding Rs.5,00,000
Rs.10,00,001 and Above Rs.1,12,500 + 30% of total income
exceeding Rs.10,00,000

The below table shows the additional components on the taxable income.

Additional components
Less: Rebeat 87A Upto Rs.12,500 If taxable income is less than or equal to Rs.5,00,000
Add: Surcharge        - 10%@ if income is > 50 Lakhs < 1 Cr.
15%@ if income is > 1 Cr.
Add: Health &
Education Cess:
       - @4%

Surcharge: It is an additional tax payable over and above the income tax. You should pay a surcharge at the rate of 10% if your income is more than 50 lakhs and less than 1 crore. But if your income exceeds 1 crore, you need to pay a surcharge at the rate of 15%.  

Health & Education Cess: If any tax is charged for any specific purpose, it is called Cess. At the rate of 
4% "Health & Education Cess" is added on the total amount of income tax (obtained by adding tax and surcharge). 

Rebate u/s 87A: Under this section, the individual taxpayer doesn't have to pay income tax up to a taxable income of Rs. 5,00,000   

Note: The income tax slab and the rate are the same for both Male and Female

How Rebate U/S 87A helps to reduce your tax to zero in FY 2019-20?

Suppose your taxable income is Rs. 5,00,000. Then according to the above table, up to Rs. 2,50,000 your tax rate is 0%. And for the next Rs 2,50,000, you have to pay tax at the rate of 5 %. So, income tax for Rs. 2,50,000 at the rate of 5% is Rs. 12,500.

Now Rebate u/s 87A comes into the picture. As per the above table, you can get a rebate up to Rs. 12,500 which makes your income tax amount equal to Rs. 0.

In this way, the changes made have helped to reduce your tax. But this holds good only for those whose taxable income is up to Rs. 5,00,000 or less.   

  

Income Tax Slab for senior citizens [ Individuals between 60-80 years of age ]

Income Tax Slab  Income Tax Rate
Up to Rs 3,00,000 Nil
Rs.3,00,001 - Rs.5,00,000 5% of total income
exceeding Rs.3,00,000
Rs.5,00,001 - Rs.10,00,000 Rs.10,000 + 20% of total income
exceeding Rs.5,00,000
Rs.10,00,001 and Above Rs.1,10,000 + 30% of total income
exceeding Rs.10,00,000

The surcharge and the Health and Education Cess remain the same as that of the resident individual taxpayer below the 60 years of age. 

Income Tax Slab for Super Senior Citizens [ Individuals above 80 Years of Age ]

Income Tax Slab  Income Tax Rate
Up to Rs 5,00,000 Nil
Rs.5,00,001 - Rs.10,00,000 20% of total income
exceeding Rs.5,00,000
Above Rs.10,00,000 Rs.1,00,000 + 30% of total income
exceeding Rs.10,00,000
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