OPEN APP
Home / Budget 2019 / News /  Income tax rates for 2019-20 after interim budget  

NEW DELHI : In the interim budget, finance minister Piyush Goyal has not changed the income tax slabs for the financial year 2019-20 but has provided relief to middle-class salaried taxpayers by rebates and increasing the standard deduction threshold.

Clause 8 of the Finance Bill introduced in parliament on Friday seeks to amend section 87A of the Income Tax Act to provide relief to individual taxpayers by allowing a rebate on annual income of up to 5 lakh.

For salaried persons, standard deduction has been raised from the current 40,000 to 50,000. This will provide an additional tax benefit of 4,700 crore to more than 3 crore salary earners and pensioners.

In the ongoing 2018-19, income up to 2.5 lakh is not taxable for individuals below the age of 60. Those above 60 years but less than 80 years enjoy a tax-free income of up to 3 lakh while for those above 80 the tax-free income goes up to 5 lakh.

According to the current slabs, if total income is more than 2.5 lakh but up to 5 lakh, then the total tax outgo is 5% of the amount by which the total income exceeds 2.5 lakh. For income between 5 lakh and 10 lakh, the tax outgo is 20% of the amount by which the total income exceeds 5 lakh plus 12,500.

In the 2019-20, a rebate has been given to only those who fall in the 5 lakh slab. Together with the increase in the standard deduction, the total tax saving is 13,520.

Income tax rates for individuals below 60 years:

Net Income after 80C deduction Tax Benefit
AY 2019-20 AY 2020-21 AY 2019-20 AY 2020-21
Net Income Increase in Standard Deduction Net Income
5,10,000 10,000 5,00,000 13,520 - 13,520
10,60,000 10,000 10,50,000 1,35,720 1,32,600 3,120
58,10,000 10,000 58,00,000 17,79,492 17,76,060 3,432
1,08,10,000 10,000 1,08,00,000 36,54,378 36,50,790 3,588


Income tax rates for senior citizens:

Resident Individual who is a senior citizen
Pre -Budget
Net Taxable Income (after deductions) 300,000 350,000 400,000 500,000 1,000,000
Tax - 2,500 5,000 10,000 110,000
Rebate - 2,500 - - -
Balance Tax - - 5,000 10,000 110,000
Cess - - 200 400 4,400
Total - - 5,200 10,400 114,000


Post -Budget
Net Taxable Income (after deductions) 300,000 350,000 400,000 500,000 1,000,000
Tax - 2,500 5,000 10,000 110,000
Rebate - 2,500 5,000 10,000 -
Balance Tax - - - - 110,000
Cess - - - - 4,400
Total - - - - 114,000
Saving - - 5,200 10,400 -

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Trending Stocks

×
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout