Income Tax Slab Rates – FY 2019-20(AY 20-21)

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Income Tax Slab Rates – FY 2019-20(AY 20-21)

Applicable for AY 20-21

 

After the `announcement of Union Budget 2019, on 5th July 2019, the slab rates will remain the same as those in FY 18-19. In India, income tax slab rates are dependent upon the age of the assessee as well as the residential status. Upto certain income there will be no tax applicable on individuals that are called the basic exemption limit. These basic exemption limits defer based on the age of the assessee. Different tax rates have been prescribed for different income slabs and it keeps on increasing with an increase in the income slab.

There is no change in the minimum threshold limits of Income Tax Exemptions from the last assessment year.

There is no change in the rate (4%) of health & education cess for all categories of Taxpayers.

A salaried will be allowed a standard deduction u/s 16  of Rs. 50,000/-.

INCOME TAX SLAB RATES FOR INDIVIDUAL ASSESSEE

Non-Senior Citizen (Age – less than 60 years)

An Individual whether an Indian resident or non-resident Indian who is less than 60 years of age will be considered as Non-Senior Citizen and would be taxed at the following rates depending upon the slabs of income.

Income Slabs

Tax rate

Upto Rs. 2.5 lakh

Nil

2.5lakh to 5 lakh

5%

5 lakh to 10 lakh

20%

Above 10 lakh

30%

Note: For checking the age – Assessee should not be 60 years or more than 60 years old on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

Senior Citizen (Age – between 60 to 80 years)

Income Slabs

Tax Rate
Upto Rs. 3 lakhs

Nil

3 lakhs to 5 lakhs

5%
5 lakhs to 10 lakhs

20%

Above 10 lakhs

30%

Note: For checking the age – Assessee should be 60 years or more but not 80 years or above on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

Super Senior Citizen (Age – above 80 years)

Income Slabs

Tax rate
Upto Rs. 5 lakhs

Nil

Rs. 5 lakhs to Rs. 10 lakhs

20%
Above Rs. 10 lakhs

30%

Note: For checking the age – Assessee should be 80 years or above on or before the last day of the relevant previous year. Age is to be checked for the previous financial year and not assessment year.

Surcharge, Education Cess and Rebate u/s 87A

Surcharge for Individual Assessees, HUFs, AOP, BOI and Artificial Juridical Person  for FY 2019-20

Surcharge will be applicable if the total income exceeds Rs. 50 lakhs.

  • If the total income is up to Rs. 50 Lakhs there will no surcharge.
  • If the total income exceeds Rs. 50 lakhs but up to Rs. 1 crore then surcharge will be 10% on applicable income tax.
  • If the total income exceeds Rs. 1 crore but up to Rs. 2 crores then a surcharge will be 15% on applicable income tax.
  • If the total income exceeds Rs. 2 crores but up to Rs. 5 crores then a surcharge will be 25% on applicable income tax
  • If the total income exceeds Rs. 5 crore then a surcharge will be 37% on applicable income tax

Note: Surcharge will be subject to marginal relief.  So, the maximum increase in tax payable due to surcharge will be lower from the following

  • Income above Rs. 50 lakhs/Rs. 1 Crore/Rs. 2 Crores//Rs. 5 Crores.
  • Total amount payable as income-tax and surcharge less the Total amount payable as income-tax on total income of Rs. 50 lakhs/Rs. 1 Crore/Rs. 2 Crores//Rs. 5 Crores.

Health & Education Cess of 4% will be applicable on the total of the income tax and applicable surcharge.

Rebate is the amount equivalent to lower of 100% of income-tax or Rs. 12,500.

Note: Rebate u/s 87A can be availed only be a resident individual whose total income does not exceed Rs. 5, 00,000.

 

Due dates of filing Income Tax Return

The due date for filing an Income tax return for AY 2020-21 for the individual assessee is 31st July 2020.

The due date for filing an Income tax return for AY 2020-21 for the individual assessee whose books of accounts are subject to audit u/s 44AB is 30th September 2020.

 

The article is compiled by CA Janhavi Phadnis. If you have any queries concerning the above article. Please write to us either in the comments section below or email us on info.financepost@gmail.com.

Disclaimer: Anyone relying on it is expected to take adequate professional care before using/implementing the content of the article. The website will in no case be liable for any damages incurred by relying on the content without adequate consultation.

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