Income Tax Slabs For the Financial Year 2019-20 (A.Y. 2020-21)

April 1, 2019 by Team Instabizfilings

Major Income Tax Update : Budget F.Y. 2019-20

Nil tax on income upto Rs. 5 Lakhs.
The exemption limit of Rs. 5 lakh combined with deductions on savings available under Sector 80 will mean that people earning Rs 6.5 lakh may not be required to pay any Income Tax.
Standard Deduction of Rs. 50,000 has been allowed for salaried taxpayers.
TDS threshold on rental income raised to Rs. 2.4 Lakhs from Rs.1.8 Lakhs.
TDS threshold on interest on bank and post office deposits raised to Rs. 40,000 from Rs. 10,000.

1. Income Tax Slab Rate for F.Y. 2019-20 (AY 2020-21) for Individuals

a. Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:

Net income range	Income-Tax rate
Up to INR 2,50,000	Nil
INR 2,50,000 to INR 5,00,000	5%
INR 5,00,000 to INR 10,00,000	20%
Above INR 10,00,000	30%

b. Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:

Net income range	Income-Tax rate
Up to INR 3,00,000	Nil
INR 3,00,000 to INR 5,00,000	5%
INR 5,00,000 to INR 10,00,000	20%
Above INR 10,00,000	30%

c. Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:

Net income range	Income-Tax rate
Up to INR 5,00,000	Nil
INR 5,00,000 INR 10,00,000	20%
Above INR 10,00,000	30%

Add:
Surcharge: - 10% of income tax where total income exceeds Rs. 50,00,000.

15% of income tax where total income exceeds Rs. 1,00,00,000.

Health and Education cess: - 4% of income tax and surcharge.

Note: - A resident individual is entitled for rebate under section 87A if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.

2. Income Tax Rate for Partnership Firm

A partnership firm (including LLP) is taxable at 30%.

Add:
Surcharge:- 12% of tax where total income exceeds INR 1 crore.
Health and Education cess: 4% of income tax plus surcharge.

3. Tax Rate for Companies

a. Tax rates for domestic companies:

Particulars	Tax rates
Total turnover or gross receipts during the previous year 2017-18 doesn’t exceed Rs. 250 Crore	25%
Other domestic companies	30%

b. Tax rates for foreign companies:

The tax rate for foreign company is 40%.

Add:

Surcharge:-

Company	Net income is between INR 1Cr. to 10 Cr.	Net income exceeds INR 10Cr.
Domestic company	7%	12%
Foreign company	2%	5%

Health and Education cess: 4% of income tax plus surcharge.

4. Income Tax Rates For HUF/AOP/BOI/Any other Artificial Juridical Person:-

Net income range	Income-Tax rate
Up to INR 2,50,000	Nil
INR 2,50,000 to INR 5,00,000	5%
INR 5,00,000 to INR 10,00,000	20%
Above INR 10,00,000	30%

Add:

Surcharge: - 10% of income tax where total income exceeds INR 50,00,000.

15% of income tax where total income exceeds INR. 1,00,00,000.

Health and Education cess: - 4% of income tax and surcharge.

5. Income Tax Slab Rate for Co-operative Society:-

Net income range	Income-Tax rate
Up to INR 10,000	10%
INR 10,000 to INR 20,000	20%
Above INR 20,000	30%

Add:

Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

6. Income Tax Slab Rate for Local Authority:-

A local authority is taxable at 30%.

Add:

Surcharge:- 12% of tax where total income exceeds Rs. 1 crore.

Health and Education cess: 4% of income tax plus surcharge.

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