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Simply put: These income tax changes can leave more money in your hands

What did the Budget 2021 have in store for tax payers?

If you earn ₹15 lakh, you save ₹15,600 with the new tax regime but you can’t claim tax benefits worth ₹73,000

<ul><li>The government has introduced new 'optional' tax slabs for individual taxpayers.</li><li>Instead of five different tax slabs, the new tax regime has seven tax slabs.</li><li>It also the lowers the tax for income between ₹12.5 lakh to ₹15 lakh from 30% to 25%.</li></ul>New tax slabs have been proposed by the Direct Tax Code panel to boost consumption and investment. The government hopes that increased purchasing power will push demand ahead of supply, incentivising firms to ramp up production which will reflect in GDP growth in the next financial year. The new tax slabs increase the minimum taxable limit from ₹2.5 lakh to ₹5 lakh. At the other end of the segment, anyone earning up to 15 lakh annually will be subject to 25% tax rate instead of 30%. However, the new tax slabs are only applicable to people who do not opt for exemptions under the tax regime -- including deductions under 80C of PF, LIP, standard deduction, LTC, house rent allowance, minor income exemption, interest deduction on home loans among others. Essentially, individual tax payers now have the choice to choose between the two tax regimes depending on their requirements. "The complex tax regime for taxpayers with the slabs rejig. With the optional new regime, taxpayers will have to evaluate what works better. Those committed to long term saving and investing via 80C may be discouraged and this may likely demotivate taxpayers from tax-saving linked investing," said Archit Gupta from Clear Tax. There will be no tax levied on annual income upto ₹5 lakh. However, if you cross that threshold tax will charged for income above ₹2.5 lakh. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Previous Tax Rate </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New Tax Rate </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to ₹2.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.5 lakh to ₹5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5 lakh to ₹7.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7.5 lakh to ₹10 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10 lakh to ₹12.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12.5 lakh to ₹15 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Above ₹15 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td></tr></tbody></table> The government’s move to stimulate the economy As companies look to increase output, job creation will go up or at least arrest job losses taking the pressure off of the country’s unemployment crisis. More jobs, would again, increase purchasing power resulting in a growth cycle. It could also increase the government’s burden On the flip side, experts expect lower tax rates to weigh on the exchequer. Tax revenue collection has often been criticized for being inefficient. However, the ultimate outcome depends on how the cycle of investment and economic growth plays out. Tax revenue could increase if the new tax cuts result in greater compliance over the next two to three years. This is also an attempt by the government to simplify the tax laws, which are known to be one of the most complicated in the world. See also: <a href="https://www.businessinsider.in/budget/news/budget-2020-allocates-6000-crore-for-bharatnet-to-connect-1-lakh-gram-panchayats/articleshow/73832949.cms">Budget 2020 allocates ₹6,000 crore for BharatNet to connect 1 lakh Gram Panchayats</a> <a href="https://www.businessinsider.in/budget/news/budget-2020-aayushman-bharat-allocation-to-eradicate-tuberculosis-by-2025-announced-by-nirmala-sitharaman/articleshow/73832769.cms">Budget 2020 aims to eradicate tuberculosis by 2025 using AI and ML to empower Aayushman Bharat</a> <a href="https://www.businessinsider.in/budget/news/budget-2020-nirmala-sitharaman-wants-nabard-to-geo-tag-cold-storage-facilities-to-make-them-more-efficient/articleshow/73832369.cms">Nirmala Sitharaman wants NABARD to geo-tag cold storage facilities to make them more efficient</a>

New income tax slabs 2020, income up to ₹5 lakh exempt

In the budget announced in 2018, the total cess on income tax increased by 4%. However, the income tax rates and the existing tax slabs remained unaltered. The two factors that decide the basic exemption limit of an individual are age and residential status. Nirmala Sitharaman, the first full time Finance Minister of the country announced the 2019 budget recently which introduced new surcharges for super-rich category of taxpayers. The EY analysis says once the budget proposals are approved by the Parliament, the effective tax payable by the super-rich will be more than 40% of their income. The said changes will take effect from April 1, 2019. 2019 budget did not announce any change in the <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">income tax slabs</keyword> and rates. Rs. 12,500 rebate is applicable to taxpayers who have a taxable income of Rs. 5 lakhs. Under section 87A, this rebate is made available. The value of standard deduction for the financial year 2019-20 will be Rs. 50,000. Surcharges that will come into force for FY 2019-20 once the budget is passed in the Parliament <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Taxable Income </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Surcharge </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income above Rs 50 lakh but below Rs 1 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">10% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income above Rs 1 crore but below Rs 2 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">15% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income above Rs 2 crore but below 5 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">25% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income above Rs 5 crore </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">37% </td></tr></tbody></table> As per the 2019 budget, find below the latest income tax slabs that will be applied for the FY 2018-19 and AY 2019-20. The basic exemption limit allowed for an individual depends on age and residential status. Based on age, three categories of tax payers are identified by the taxation procedures. 1. Individuals below 60 years of age 2. Senior citizens between 60 years and 80 years of age 3. Super senior citizens above 80 years of age Income tax slabs for Individuals below 60 years of age <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income slabs </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of income tax and cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Up to Rs 2.5 lakh </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 2,50,001 to Rs 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">5% of (Total income minus Rs 2,50,000) + 4% cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 5,00,001 to Rs 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 12,500 + 20% of (Total income minus Rs 5 00,000) + 4% cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 10,00,001 and above </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess </td></tr></tbody></table> Income tax slabs for senior citizens between 60 and 80 years of age (Senior Citizen) <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income slabs </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of income tax and cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Up to Rs 3 lakh </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 3,00,001 to Rs 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">5% of (Total income minus Rs 3,00,000) + 4% cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 5,00,001 to Rs 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 10,000 + 20% of (Total income minus Rs 5, 00,000) + 4% cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 10,00,001 and above </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 1,10,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess </td></tr></tbody></table> Income tax slabs for super senior citizens above 80 years of age (Super Senior Citizen) <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income slabs </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of income tax and cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Up to Rs 5 lakh </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 5,00,001 to Rs 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">20% of (Total income minus Rs 5,00,000) + 4% cess </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 10,00,001 and above </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs 1,00,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess </td></tr></tbody></table>

Income Tax Slab For Filing ITR (Income Tax Return)

The taxation laws in India contain a number of provisions to let the tax payers save on taxes. By taking some informed decisions on how you spend and account, you can save on taxes in a legitimate way. Here we discuss some important deductions under the Income Tax Act 1961. Tips to save on income tax Make the right use of Rs.1.5 lakhs limit allowed under Section 80C Investing up to a limit of Rs. 1.5 lakh in schemes like Tax-Saver FDs, PPF (Public Provident Fund), ELSS Funds, NSC (National Saving Certificate), Life Insurance Premiums, National Pension System (NPS), Home Loan Repayment, Payment of tuition fees of your children, EPF, Senior Citizens Savings Scheme, and Sukanya Samriddhi Yojana can enable you for appropriate tax deductions depending on the case. National Pension System This deduction facilitated by Section 80CCD (1B) allows up to Rs 50,000 for contributing to the National Pension Scheme. The NPS makes it possible to invest in equity and debt pension funds for building a corpus for the retirement life. This can be withdrawn at 60 years of age. Health Insurance Premiums Paying for health insurance premiums can let you qualify for a deduction up to Rs 25,000 under Section 80D. This is permitted on top of all the deductions listed above. In case of senior citizens, this limit is up to Rs. 50,000. The taxpayer contributing towards health insurance premiums for himself as well as for a senior citizen can claim a combined deduction of up to Rs. 75,000 per annum. Deduction on your rent If you are getting HRA, it is possible to claim tax deduction on your House Rent. Though there is no upper limit specified for this, there are some rules that place a cap on the maximum deduction. If you do not get HRA but pay towards rent, a maximum claim of up to Rs. 60,000 per annum is allowed under Section 80GG. Deduction on the home loan interest When you have a home loan running, the interest you pay towards the home loan is tax deductible under Section 24 of the Income tax Act. The maximum limit that you can claim in this regard is Rs. 2 lakh. If the house is rented out, there is no upper limit. Money in your savings account The easiest way to save money on income tax is to keep some money in your savings account. Up to a limit of Rs. 10,000 per year, the interest on savings accounts is tax free under the Section 80TTA. In case of senior citizens, this limit is up to Rs 50,000 applicable in cases of both FD and savings account interest. Give for charity Donations made towards charity enable you for tax deductions. Though there is no upper limit for this, there are different rules that restrict the amount deductible on the contributions towards charities. Across a majority types of donations to the NGOs, this limit is fixed at 50% of the donated amount and up to 10% of the total income that is adjusted. If you want to claim this deduction, the NGOs to which you contribute must have 80 G certificate.

How to save Income Tax in India Schemes to Invest in 2019

<ul><li>There is no change in the <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">income tax slabs</keyword> for the common citizen but Union Budget has introduced savings from home loans and more tax on the super rich. </li><li>Housing loans will be now be deductible for another ₹1.5 lakh. </li><li>Incomes between ₹2-5 crore will face an effective tax impact of 3% and incomes above ₹5 crore will have to pay another 7%.</li></ul> During the interim budget, the Indian government already extended the non-taxable slab upwards of ₹500,000. Nirmala Sitharaman, the current Minister of Finance, thanked taxpayers for being responsible and for their due diligence but made no announcement to change the income tax slabs any further. 
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 However, she did announce an additional deduction of ₹1.5 lakh on housing loans bringing up the total deduction to ₹3.5 lakh. And the country’s super rich are going to be subject to higher taxes. If their income falls between ₹2-5 crores, they will be subject to an effective tax impact of 3%. Any income beyond ₹5 crores will have to pay another 7%. She highlighted that the revenue from tax has increased from ₹6.38 crores in 2013-14 to 11.37 crores in 2017-18, growing at a double digital rate every year. Going forward, the government aims to further simplify the process of paying taxes and applying greater transparency. Last time around, Piyush Goyal, the interim finance minister who presented the budget, also clarified that even people will gross income of upto ₹650,000 may not be required to pay any income tax if they make investments in provident funds, specified savings and insurance etc. Goyal added that this move will allegedly provide tax benefit of ₹185 billion to an estimated 30 million Indian middle-class taxpayers. Essentially, you won’t have to pay any tax if you have ₹7.5 million tucked away in fixed deposits and no other income because you'll only be earnings ₹450,000 a year assuming an interest rate of 6%. In 2014 budget, the minimum tax exemption limit was raised from ₹200,000 to ₹250,000. Along with that, the limit under 80C was hiked by ₹50,000 to ₹150,000. - so essentially, individuals can reduce up to ₹150,000 from their total taxable income. Cuts in income-tax rates have invariably resulted in higher revenues in the past, and there is no reason why they should not generate a similar response in the future. India has generally been a non-compliant society, where avoiding and evading tax plague the economy. A tax cut is a temporary incentive for both since it drives down the incentive to avoid compliance. Income tax slab for individual tax payers aged less than 60 years (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Income range per annum </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax rate </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 2.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 2.5 lakhs to Rs.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">5% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 5 lakhs to Rs. 10 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">20% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 10 lakhs to Rs. 50 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 50 lakhs to Rs. 1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 10% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Above Rs.1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% +15% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Rebate as per Section 87 (A) </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">100% tax rebate is allowed for a maximum value of Rs. 2,500 in case of resident individuals whose total income is not above Rs. 3.5 lakhs </td></tr></tbody></table> Income tax slab for senior citizens aged between 60 and 80 years (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Income range per annum </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax rate </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 2.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 2.5 lakhs to Rs.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">5% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 5 lakhs to Rs. 10 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">20% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 10 lakhs to Rs. 50 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 50 lakhs to Rs. 1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 10% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Above Rs.1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% +15% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Rebate as per Section 87 (A) </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">100% tax rebate is allowed for a maximum value of Rs. 2,500 in case of resident individuals whose total income is not above Rs. 3.5 lakhs </td></tr></tbody></table> Income tax slab for senior citizens aged above 80 years (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Income range per annum </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax rate </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 2.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 5 lakhs to Rs. 10 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">20% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 10 lakhs to Rs. 50 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 50 lakhs to Rs. 1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 10% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Above Rs.1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% +15% surcharge + 4% cess </td></tr></tbody></table> Income tax slab for firms and domestic companies (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax category </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Firms </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Domestic companies </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Turnover up to Rs. 50 crores </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">25% </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Turn over above Rs. 50 crores </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Surcharges </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">If the total income exceeds 1 crore, 12% of tax is applied as surcharge </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">7% of tax if income exceeds 1 crore but is below 10 crore.10% of tax in case the income exceeds Rs. 10 crores </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Cess </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">3% of tax + surcharge </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">3% of tax + surcharge </td></tr></tbody></table>

You Searched For "income tax slab" and got 7 results

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If you earn ₹15 lakh, you save ₹15,600 with the new tax regime but you can’t claim tax benefits worth ₹73,000

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Income Tax Slab For Filing ITR (Income Tax Return)

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Income tax changes: More savings on home loans and more tax on the super rich

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