Income tax slab rates FY 2019-20 (AY 2020-21)

With the introduction of Union Budget 2018, there has been a substantial change and modification in the tax slabs applicable to the salaried class. If you are a salaried professional, you will be required to check the latest Income Tax slab.
More

New income tax slab rates for FY 2019-20 (AY 2020-21) based on Budget 2019 

Income Tax Slab

Here are the latest income tax slab rates as per the Union Budget 2019 for different categories of taxpayers and legal entities: 

Income tax slab for individual taxpayers (Resident Individuals and Non-Resident Indians) and HUF (less than 60 years old) 

Income tax slab Tax rate
Up to Rs.2.5 lakh  Nil 
Between Rs.2.5 lakh to Rs.5 lakh  5% 
Between Rs.5 lakh to Rs.10 lakh  20% 
Over Rs.10 lakh  30% 
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore  10% of income tax 
Above Rs.1 crore  15% of income tax 

Health and education cess: 4% on tax computed inclusive of the surcharge

Income tax slab for individual taxpayers between 60 and 80 years of age

Income tax slab Tax rate
Up to Rs.3 lakh  Nil 
Between Rs.3 lakh to Rs.5 lakh  5% 
Between Rs.5 lakh to Rs.10 lakh  20% 
Above Rs.10 lakh  30% 
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore  10% of income tax 
Above Rs.1 crore  15% of income tax 

Health and education cess: 4% on tax computed inclusive of the surcharge 

Income tax slab for individual taxpayers above 80 years of age 

Income tax slab Tax rate
Up to Rs.5 lakh  Nil 
Between Rs.5 lakh to Rs.10 lakh  20% 
Above Rs.10 lakh  30% 
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore  10% of income tax 
Above Rs.1 crore  15% of income tax 

Health and education cess: 4% on tax computed inclusive of the surcharge 

Income tax slab for Association of Persons (AOP) 

Income tax slab Tax rate
Up to Rs.2.5 lakh  Nil 
Between Rs.2.5 lakh to Rs.5 lakh  5% 
Between Rs.5 lakh to Rs.10 lakh  20% 
Above Rs.10 lakh  30% 
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore  10% of income tax 
Above Rs.1 crore  15% of income tax 

Education cess: 2% extra on income tax + applicable surcharge 

Secondary and higher education cess: 1% extra on income tax + applicable surcharge 

Income tax slab for Bodies of Individuals (BOI) 

Income tax slab Tax rate
Up to Rs.2.5 lakh  Nil 
Between Rs.2.5 lakh to Rs.5 lakh  5% 
Between Rs.5 lakh to Rs.10 lakh  20% 
Above Rs.10 lakh  30% 
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore  10% of income tax
Above Rs.1 crore  15% of income tax 

Education cess: 2% extra on income tax + applicable surcharge 

Secondary and higher education cess: 1% extra on income tax + applicable surcharge 

Income tax slab for Other Artificial Judicial Persons 

Income tax slab Tax rate
Up to Rs.2.5 lakh  Nil 
Between Rs.2.5 lakh to Rs.5 lakh  5% 
Between Rs.5 lakh to Rs.10 lakh  20% 
Above Rs.10 lakh  30% 
Income Range Surcharge
Between Rs.50 lakh and Rs.1 crore  10% of income tax 
Above Rs.1 crore  15% of income tax 

Education cess: 2% extra on income tax + applicable surcharge 

Secondary and higher education cess: 1% extra on income tax + applicable surcharge 

For Partnership Firms and Limited Liability Partnerships (LLPs) 

Applicable tax is at 30% flat rate. 

Plus: 

  • Surcharge: 12% over the income tax amount for income exceeding Rs.1 crore 
  • Health and education cess: 4% on the tax computed inclusive of surcharge 

For local authorities 

Applicable tax is at 30% flat rate. 

Plus: 

  • Surcharge: 12% over the income tax amount for income exceeding Rs.1 crore 
  • Health and education cess: 4% on the tax computed inclusive of surcharge 

For domestic companies 

Applicable tax is at 30% flat rate. 

In the previous year, if the gross receipt has not exceeded Rs.250 crore, tax rate will be 25%. 

  • Surcharge: 7% of the income tax amount for income between Rs.1 crore and Rs.10 crore 

12% if the income exceeds Rs.10 crore. 

  • Health and education cess: 4% of the tax computed inclusive of surcharge  

For foreign companies 

Nature of income Tax rate
Income received as royalty that is compensated by the Government of India as per agreement entered into with an Indian company (after March 31, 1961 and before April 1, 1976)  50% 
Income as fees for technical services as per agreement entered into with an Indian company (after February 29, 1964 and before April 1, 1976)  50% 
Any additional income earned  40% 

Plus: 

  • Surcharge:2% of the income tax amount for income between Rs.1 crore and Rs.10 crore. 

5% of the income tax amount for income greater than Rs.10 crore. 

  • Health and education cess: 4% of the tax computed inclusive of surcharge 

For cooperative societies (urban, semi-urban, and rural excluding Agricultural Societies and Self Help   Groups) 

 
Income range Tax rate
Up to Rs.10,000  10% 
Between Rs.10,000 to Rs.20,000  20% 
Above Rs.20,000  30% 

Plus: 

  • Surcharge: 12% of the income tax amount for income greater than Rs.1 crore 
  • Health and education cess: 4% of the tax computed inclusive of surcharge 

Income Tax Slabs FAQs

  1. What is the difference between senior citizens and super senior citizens?
  2. Senior citizens are individuals who are above 60 years of age but under 80 years of age, while super senior citizens are those who are above 80 years of age.

  3. How much surcharge is applicable on my income tax?
  4. The amount of surcharge you will have to pay on your income tax will depend upon your income. Those who earn under Rs.50 lakh will have to pay no surcharge, while those who earn between Rs.50 lakh and Rs.1 crore will be charged 10% on their tax, and those who earn in excess of Rs.1 crore will have to pay 15% extra on their tax.

  5. What cess is charged on income tax?
  6. Secondary and Higher Education Cess is applicable to FY 2017-18, and Health and Education Cess is applicable to FY 2018-19.

  7. Do I have to pay cess on my income tax?
  8. Yes, for FY 2017-18, the cess applicable is 3% on the overall income tax plus surcharge.

  9. What is the difference between the minimum exemption limit for senior citizen and that for super senior citizen?
  10. The minimum exemption limit for individuals under 60 years of age is Rs.2.5 lakh, while the limit for both senior citizens as well as super senior citizens is Rs.5 lakh.

News About Income Tax Slabs and Rates

  • NITI Aayog wants to extend the 10% income tax slab

    Currently, the 3 income tax slabs in India are 10% tax for annual income between Rs.2.5 lakhs to Rs.5 lakhs, 20% tax for annual income between Rs.5 lakhs to Rs.10 lakhs, and 30% tax for annual income over Rs.10 lakhs. NITI Aayog, India’s leading policy think-tank wants to extend the 10% income tax slab from Rs.5 lakhs to Rs.7 lakhs. The tax exemption limit will remain the same at Rs.2.5 lakhs. NITI Aayog also wants the 2017-18 Budget to focus on creating more jobs. The think-tank also wants to increase the spending on social sectors by using extra revenues on the education and health sectors. A 3-year action plan will be presented by NITI Aayog after the release of 2017-18 Union Budget on February 1st.

    16 January 2017

  • Government Looking to Raise the Limit of Tax Exemption

    According to recent reports, the Modi government may be considering increasing the income tax slab from a minimum of Rs.2.5 lakh to Rs.4 lakh per annum. The reduction is being considered in view of the recent demonetization drive so that the public can have more expendable income at hand to increase consumption and boost economy.

    The report says that tax slabs being considered are as follows:

    • 10% income between Rs.4 lakh and Rs.10 lakh

    • 15% income between Rs.10 lakh and Rs.15 lakh

    • 20% income between Rs.15 lakh and Rs.20 Lakh

    • 30% for an income of more than Rs.20 lakh

    According to chartered accountant Vikamsey Nilesh Shivji, the fall in revenue in direct tax would be made up with an increase in indirect tax and compliance. The Central Board of Customs and Excise reported that in financial year 2015-16, indirect taxes grew faster at 24% than direct taxes which increased at a rate of 15% till October.

    19 December 2016

  • New Income Tax Disclosure Norms may be difficult for HNIs and the Ultra-Rich

    Individuals earning more than 50 lakh rupees per annum are required now to declare ‘the acquisition costs of high-value assets like jewelry, flats, land, apparel and other precious metals owned by them. The main motto of the Income Tax Department behind such a rule is to nab tax evaders from the ultra rich category of taxpayers. Mostly, HNIs do not disclose details of all the assets owned by them in order to save on tax payment.

    Critics however, are of the view that it is not necessary for individuals to remember or keep track of all valuables or assets owned by them and in such cases it might become a little too difficult to abide by this new rule of the IT department.

    24 May 2016

  • IT Department introduces New Tax Disclosure Norms for the Ultra-Rich and HNIs

    The Income Tax Department has introduced new income tax disclosure norms under which individuals with a yearly income of more than Rs 50 Lakhs are required to disclose the cost of acquisition of any assets such as property, jewellery, precious metals, apparels etc in their tax return forms for the assessment year 2016-17. However, tax experts are of the opinion that this might make life difficult for the ultra-rich as well as high networth individuals since they might find it hard to keep a track of all the items mentioned by the Income Tax Department. CEO and founder of BigDecisions.com, Manish Shah, stated that many of the individuals in question have assets spread all over India as well as abroad, making it hard for them to keep a record of such items. He also stated that the new norms were introduced to counter tax evasion on the part of those individuals with a high networth who do not declare assets in order to avoid paying tax.

    12 May 2016

  • Revenue Secretary says that raising tax slabs could have resulted in huge loss

    Changing the Income Tax slab would have resulted in huge losses of around Rs.20000 crore. The same has been revealed by the Revenue Secretary Hasmukh Adhia. The secretary revealed that the government had planned to benefit only the small taxpayers as part of the recent budget. There also was the issue of fiscal deficit to be addressed and as such taxpayers in the higher bracket of 20-30 per cent will have to wait.

    Another reason for not changing the slabs is that the effective Rate paid by most taxpayers is less because of various tax exemptions that people take advantage of. He said one of the most positive decisions taken by the government was to hold the fiscal deficit at 3.5 per cent of the GDP and not letting it exceed that figure.

    6 April 2016

Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

reTH65gcmBgCJ7k
This Page is BLOCKED as it is using Iframes.