The department has given time till 27 October for stakeholders to give comments on the proposed amendment to Income Tax rule 17A and form 10A, the CBDT said. Photo: iStock
The department has given time till 27 October for stakeholders to give comments on the proposed amendment to Income Tax rule 17A and form 10A, the CBDT said. Photo: iStock

Income tax slabs and rates for FY 2019-20

  • While doing your tax planning for the current financial year 2019-20, it is important to understand the income tax slab and rates
  • Although there is no change in the income tax slab as compared to the last year, yet your tax outgo may be affected due to rebates and deductions

NEW DELHI : Before finance minister Nirmala Sitharaman announces Budget 2020 on February 1 in which she is widely expected to give income tax relief to the middle class for FY 2020-21, let us take a look at the existing income tax rates and slabs for FY 2019-20.

During her first Budget presented in last July, Sitharaman had chosen not to tinker with the income tax slab rates. As compared to the FY 2018-19, there has been some changes in standard deduction and rebates which may affect you tax outgo during the current financial year.

Income tax slab for those below 60 years:

If the total income is not more than 2.5 lakh, the rate of tax is nil.

Where the total income is more than 2.5 lakh but less than 5 lakh, you have to pay 5% income tax by which the amount exceeds 2.5 lakh.

For those earning between 5 lakh and 10 lakh, the tax outgo will be of 12,500 plus 20% of the amount by which the total income exceeds 5 lakh.

If you are earning more than 10 lakh, you have to pay tax of 1 lakh plus 30% of the total income exceeding 10 lakh.

However, those earning up to 5 lakh can claim a rebate of 12,500 under Section 87A of the Income Tax Act. This will effectively bring down the tax outgo to zero. However, if your taxable income crosses 5 lakh, you are not eligible for the rebate and will have to pay the full amount of tax as per the slab.

A health and education cess of 4% will be added to the total tax outgo besides a surcharge if your income crosses 50 lakh.

Income tax for senior citizens:

Senior citizens will not have to pay any tax for income up to 3 lakh and for super senior citizens (above 80 years), the exemption is up to 5 lakh.

If the total income is more than 3 lakh but less than 5 lakh, the income tax outgo will be 5% of the amount by which the total income exceeds 3 lakh.

For those in between the 5 lakh to 10 lakh slab, the tax outgo will be 10,000 plus 20% of the amount by which the income exceeds 5 lakh.

If the total income exceeds 10 lakh, the tax outgo will be 1.10 lakh plus 30% of the total amount by which the income exceeds 10 lakh.

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