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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

As the <keyword id="547606" type="ORGANIZATION" weightage="20" keywordseo="interim-budget">interim budget</keyword> approaches, there is widespread hope that the Modi government will change <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">income tax slabs</keyword>. Last year’s budget did not alter the income tax slabs in any way and the exemption limit and the income tax rates continued like before till date. Over the past interim budgets, the central governments awaiting the elections did not announce any major steps. Nevertheless, reports now suggest that the Modi government may break the convention this time in order to woo voters. It’s being widely speculated the government might double the income tax exemption threshold from the present Rs 2.5 lakh to Rs 5 lakh according to an IANS report. It is also possible that Jaitley might restore the tax-free status of the medical expenses and transport allowances, reported the news agency, quoting the government sources. As the PTI reports, raising the income tax exemption limit to ₹ 5 lakh per annum is one of the major demands that the Confederation of Indian Industry (CII). The industry chamber has also pressed to increase the deduction under 80C to Rs 2.50 lakhs which is believed to encourage more investments. Another suggestion made by the CII while expecting the interim budget is to bring down the highest personal income tax rate from 30% to 25% which will give room for exemptions towards medical expenses and transport allowances. If the income tax slabs are altered before releasing the Direct Tax Code report on February 28, the process may become contentious. The new revision anticipated is expected to make the income tax rates more progressive by bringing relief to the people in the 5% and 20% slabs, reported Mint earlier on May 14. As per the current tax slab, the income under Rs 2.5 lakh will be exempt from tax. Income between Rs 2.5 lakhs and 5 lakhs will invite 5% income tax and earnings between Rs 5 lakhs and 10 lakhs will attract 20% taxes while anything beyond 10 lakhs will be taxed at 30%.

Here’s what people expect on income tax from the upcoming Indian budget

<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)

In India, taxes vary according to income. And different tax slabs correspond to how much one is liable to pay. Here’s a look at some key terms: <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">Income tax slabs</keyword> Income tax slabs refer to different levels of income and their corresponding tax liabilities. They apply to individuals, Hindu Undivided Families (HUFs), Body of Individuals (BOIs), Association of Persons (AOPs), and co-operative societies. Individuals, HUFs, AOPs, BOIs There are four income tax slabs for individuals, HUFs, AOPs, BOIs. The first slab of income has an upper limit of ₹250,000 and is exempt from tax. Here are the other four slabs: Income Tax Payable <table style="border-width: initial; border-style: none;"></colgroup></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;">Slab </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;">Income range </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;">Taxes applicable </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;">1 </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;">Income below ₹ 2,50,000 </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;">No tax </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;">2 </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;">Income between ₹ 2,50,000 and ₹ 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;">10% of income </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;">3 </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;">Income between ₹ 5,00,000 and ₹ 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 income </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;">4 </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;">Income above ₹ 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;">30% of income </td></tr></tbody></table> Case study - 1 Let us assume an individual in India makes an income of ₹7,00,000. In this case, his earnings up to ₹2,50,000 are exempt from tax. However, he will have to pay 10% tax on any income between ₹2,50,000 and ₹5,00,000. That means a tax liability of ₹25,000. For the income above ₹5,00,000, the tax payable will be 20%, which will work out to ₹40,000 (20% of ₹2,00,000). So considering these different income tax slabs, the total tax of ₹65,000 will be payable. Senior citizens There are four income slabs for senior citizens in the age group 60 - 80. Different from general individuals, they are not liable to pay any tax up to ₹3,00,000. Income Tax Payable by senior citizens <table style="border-width: initial; border-style: none;"></colgroup></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;">Slab </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;">Income range </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;">Taxes applicable </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;">1 </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;">Income below ₹ 3,00,000 </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;">No tax </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;">2 </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;">Income between ₹ 3,00,000 and ₹ 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;">10% of income </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;">3 </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;">Income between ₹ 5,00,000 and ₹ 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 income </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;">4 </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;">Income above ₹ 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;">30% of income </td></tr></tbody></table> Super Senior Citizens In case of super senior citizens above the age of 80, there are three income slabs. Super senior citizens are not liable to pay any tax until their income crosses the upper limit of ₹5,00,000. Income Tax Payable by super senior citizens <table style="border-width: initial; border-style: none;"></colgroup></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;">Slab </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;">Income range </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;">Taxes applicable </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;">1 </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;">Income below ₹ 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;">No tax </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;">2 </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;">Income between ₹ 5,00,000 and ₹ 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 income </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;">3 </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;">Income above ₹ 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;">30% of income </td></tr></tbody></table> Co-operative Societies There are three income slabs considered in case of co-operative societies to calculate income taxes payable. Income Tax Payable by co-operative societies <table style="border-width: initial; border-style: none;"></colgroup></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;">Slab </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;">Income range </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;">Taxes applicable </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;">1 </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;">Income up to ₹10,000 </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;">10% of income </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;">2 </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;">Income between ₹10,000 and ₹20,000 </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 income </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;">3 </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;">Income above ₹ 20,000 </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;">30% of income </td></tr></tbody></table> In summary, we can say that the Indian taxation laws do not calculate income tax payable on a flat rate. And the slabs help calculate total taxes.

Here’s how income tax slabs work in India

The income tax slabs have undergone a revision during the latest budget in India and here is a summary of different income tax slabs you must know for the financial year 2019-20. For earnings up to 5 lakhs in a year, no income tax is applicable. The exemption allowed on up to 5 lakhs income per year is combined with deductions on savings facilitated by Sector 80. This will imply that those that are earning till Rs. 6.5 lakhs per annum need not pay any income tax. In case of salaried employees, a standard deduction of Rs. 50,000 is allowed. The TDS threshold on income through rents in raised to 2.4 lakhs from 1.8 lakhs. On bank and post office deposits, the threshold on interests are raised from Rs. 40,000 from Rs. 10,000. Income tax slab for <keyword id="7824722" type="UNKNOWN" weightage="20" keywordseo="individual-tax-payers">individual tax payers</keyword> 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-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 range per annum </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;">Tax rate </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 lakhs </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;">No Tax </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;">From Rs. 2.5 lakhs to Rs.5 lakhs </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% + 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;">From Rs. 5 lakhs to Rs. 10 lakhs </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% + 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;">From Rs. 10 lakhs to Rs. 50 lakhs </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;">30% + 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;">From Rs. 50 lakhs to 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;">30% + 10% surcharge + 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;">Above 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;">30% +15% surcharge + 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;">Rebate as per Section 87 (A) </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;">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-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 range per annum </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;">Tax rate </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 lakhs </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;">No Tax </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;">From Rs. 2.5 lakhs to Rs.5 lakhs </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% + 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;">From Rs. 5 lakhs to Rs. 10 lakhs </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% + 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;">From Rs. 10 lakhs to Rs. 50 lakhs </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;">30% + 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;">From Rs. 50 lakhs to 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;">30% + 10% surcharge + 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;">Above 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;">30% +15% surcharge + 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;">Rebate as per Section 87 (A) </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;">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-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 range per annum </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;">Tax rate </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 lakhs </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;">No Tax </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 lakhs </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;">No Tax </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;">From Rs. 5 lakhs to Rs. 10 lakhs </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% + 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;">From Rs. 10 lakhs to Rs. 50 lakhs </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;">30% + 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;">From Rs. 50 lakhs to 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;">30% + 10% surcharge + 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;">Above 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;">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-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;">Tax category </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;">Firms </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;">Domestic companies </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;">Turnover up to Rs. 50 crores </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;">30% </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;">Turn over above Rs. 50 crores </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;">30% </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;">30% </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;">Surcharges </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;">If the total income exceeds 1 crore, 12% of tax is applied as surcharge </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;">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-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;">Cess </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;">3% of tax + surcharge </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;">3% of tax + surcharge </td></tr></tbody></table>

Current Income Tax Slab For 2019-20 (Income Tax Brackets In 2019-20)

<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>

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

<ul><li>The Indian government just proposed modifying the tax slabs, allowing for full tax rebate on incomes up to ₹500,000. </li><li>It’s a populist move in the interim-budget, also termed the ‘election budget’. </li><li>The announcement could potentially prove to be controversial once the Direct Tax Code Report comes out on February 28.</li></ul>The middle-class in India has been hit hard by several indirect taxes, rising prices, and income hasn’t nearly caught up. Since today’s budget was an interim budget, tax breaks and policy changes weren’t expected, but realignment of the tax slabs was on many wish-lists. The Indian government has announced relief for individual middle-class taxpayers extending the non-taxable slab upwards to ₹500,000. "The benefit will be to only those taxpayers whose total income doesn’t exceed ₹500,000. The moment it exceeds ₹500,000, tax will start from ₹250,0000 at 5% up to ₹500,000 and 20% from ₹500,000 to ₹1 million," according to Ved Jain, former president of the Institute of Chartered Accountants of India. 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 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%. It’s an apt populist move by the Modi government considering that they fell short on their promises of increasing employment from 2014 and demonetisation disrupted the economy. Not the first time 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. The new tax slabs In its pre-budget memorandum, the Confederation of Indian Industry (CII) had suggested that the tax rate should be zero from income up to ₹500,000, while 10% tax should be levied on income upto ₹1 million and 20% on income up to ₹2 million and 25% on income beyond ₹2 million. 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. Introducing new tax slabs also puts more money in hands of the taxpayers increasing consumption demand. The requirement for borrowing goes down which, ideally, results in interest rates going down. The new tax slabs may have appeased the country but the Direct Tax Code Report is coming up on February 28 that could quickly turn the tables on the government.

No tax proposed on annual income up to ₹500,000

For administering the country, the government generates money through different channels. India follows a system of charging taxes on the income earned by individuals. <keyword id="6354751" type="UNKNOWN" weightage="20" keywordseo="income-tax">Income tax</keyword> is one of the chief revenue sources of a country’s governance. Hence, income tax is the most common topic of every citizen in the country. Here we discuss how income tax is calculated in India. Income tax slabs To know how income tax is calculated in India, you must first know about the income tax slabs. Income Tax Slab is the kind of parameter applied by the Income Tax Department in India to decide how taxes are levied to different individuals and non-individuals. Year on year, the tax slab whether revised or continued is announced as part of the Union Budget. Tax Slabs Overview for individuals (male and female) <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 Range </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 Tax </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 up to 2,50,000 </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;">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% </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 the income that exceeds Rs. 500,000. </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;">Above 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. 1,12,500 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> Tax Slabs Overview for senior citizens in the age group 60 to 80 <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 Range </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 Tax </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 up to 3,00,000 </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;">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% </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 the income that exceeds Rs. 500,000. </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;">Above 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. 1,10,000 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> Tax Slabs Overview for senior citizens in the age group above 80 <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 Range </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 Tax </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 up to 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;">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% </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;">Above 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. 1,00,000 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> New changes The Union Budget 2019 – 20 has announced a revision that allows a full tax rebate for income that is up to Rs. 5 lacs under Section 87 A. This change lifts up the existing tax slab. Calculation of income tax Taxable income of individuals is worked out based on several factors including tax slab of the individual or entity, the different kinds of deductions applicable to the concerned tax payer, the taxes already paid including advance tax and tax deducted at source (TDS). How to know the income tax payable? In the first slab, know your income tax slab. Work out all the deductions applicable in your case. For example, deduction can be claimed for investment in life insurance for premiums up to Rs. 1.5 lacs. Under Section 80C, you can also claim deduction for investments in PPF (Public Provident Fund), NSC (National Savings Certificate) and other instruments like home loan principal repayment. Section 80 D enables a deduction for investments in health insurance plans up to Rs. 25,000 for the individual and his or her family and up to Rs. 25,000 for parents aged above 60 years. Section 24 enables deduction on home loan interest up to Rs. 2 lac. These deductions can help lower the overall tax outgo. Filing <keyword id="6374875" type="UNKNOWN" weightage="20" keywordseo="itr">ITR</keyword> For individuals making less than Rs. 2.5 lacs per annum, it is not compulsory to file income tax returns. However, if you have a PAN number, experts advise you to file income tax returns even when you have an income below the taxable threshold. In this case, you can file a Nil return.

How Income Tax Is Calculated

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.

You Searched For "Income Tax slabs" and got 10 results

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

Prabhjote Gill

Here’s what people expect on income tax from the upcoming Indian budget

BI India Bureau

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

Prabhjote Gill

Income Tax Slab For Filing ITR (Income Tax Return)

BI India Bureau

Here’s how income tax slabs work in India

BI India Bureau

Current Income Tax Slab For 2019-20 (Income Tax Brackets In 2019-20)

BI India Bureau

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

Prabhjote Gill

No tax proposed on annual income up to ₹500,000

Prabhjote Gill

How Income Tax Is Calculated

BI India Bureau

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

BI India Bureau

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