Income Tax Slab (For FY 2018-19 & AY 2019-20)
Income Tax Slab

Income Tax Slab (For FY 2018-19 & AY 2019-20)

interim Finance Minister Piyush Goyal in his budget speech has proposed a full rebate for individual income taxpayers with annual taxable income up to Rs 5 lakh. In addition to that, he has also proposed to hike the standard deduction limit for salaried people and pensioners to Rs 50,000 from Rs 40,000 currently.

Once these proposals are passed by the Parliament, they will be effective from April 1, 2019, for the financial year 2019-20. However, no change has been proposed in the income tax slabs and rates.

We have made an income tax calculator to let you know how much you tax you will save in the Financial Year 2019-20 as compared to Financial Year 2018-19.

As per the analysis, individual taxpayers having net taxable income up to Rs 5 lakh will get full rebate under section 87A. As per the Finance Bill, the rebate amount has been proposed to be increased to Rs 12,500 from currently, Rs 2,500. This effectively means that taxpayers with taxable income up to Rs 5 lakh will pay no tax from FY2019-20 onwards.

However, for individuals having net taxable income exceeding Rs 5 lakh will pay income tax as per the existing tax rates.

1. Income Tax Slab for Individual who are below 60 years:

 Income Tax slab Tax Rate
Up to Rs.2.5 lakh Nil
From Rs.2,50,001 to Rs.5,00,000 5% of the total income that is more than Rs.2.5 lakh + 4% cess
From Rs.5,00,001 to Rs.10,00,000 20% of the total income that is more than Rs.5 lakh + Rs.12,500 + 4% cess
Income of above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,12,500 + 4% cess

Given below is an example of how income tax is calculated for 3 individuals (A, B, and C):

Components A B C
Annual Salary (Rs.) 5,00,000 10,00,000 15,00,000
Standard Deduction (Rs.) 50,000 50,000 50,000
Tax deductions under Section 80C of the Income Tax Act (Rs.) 70,000 1,50,000 1,50,000
House Rent Allowance (H.R.A.) deductions 82,000 90,000 1,40,000
Gross total income after deductions (Rs.) 2,88,000 7,00,000 11,50,000
Computation of tax on the gross total income
Up to Rs.2.5 lakh (Rs.) Nil Nil Nil
From Rs.2,50,001 to Rs.5 lakh (Rs.) 1,900 12,500 12,500
From Rs,5,00,001 to Rs.10 lakh (Rs.) 40,000 1,00,000
Above Rs.10 lakh (Rs.) 45,000
Total Tax (Rs.) 1,900 52,500 1,57,500
Deductions under Section 87A (Rs.) 1,900 Nil Nil
Additions of cess (Rs.) Nil 2,100 6,300
Total tax that is payable (Rs.) (Total Tax + cess – Deductions under Section 87A) Nil 54,600 1,63,800

2. Income Tax Slab between 60-80 years:

Income Tax slabs Tax Rate
Up to Rs.3 lakh Nil
From Rs.3,00,001 to Rs.5,00,000 5% of the total income that is more than Rs.3 lakh + 4% cess
From Rs.5,00,001 to Rs.10,00,000 20% of the total income that is more than Rs.5 lakh + Rs.10,500 + 4% cess
Income of above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,10,000 + 4% cess

Given below is an example of how income tax is calculated for 3 individuals (A, B, C):

Components A B C
Annual Salary (Rs.) 5,00,000 10,00,000 15,00,000
Standard deduction (Rs.) 50,000 50,000 50,000
Tax deductions under Section 80C of the Income Tax Act (Rs.) 70,000 1,50,000 1,50,000
House Rent Allowance deductions 82,000 90,000 1,40,000
Gross total income after deductions (Rs.) 2,88,000 7,00,000 11,50,000
Computation of tax on the gross total income
Up to Rs.3 lakh (Rs.) Nil Nil Nil
From Rs.3,00,001 to Rs.5 lakh (Rs.) Nil 10,500 10,500
From Rs,5,00,001 to Rs.10 lakh (Rs.) 40,000 99,500
Above Rs.10 lakh (Rs.) 45,000
Total Tax (Rs.) Nil 50,500 1,55,000
Deductions under Section 87A (Rs.) Nil Nil Nil
Additions of cess (Rs.) Nil 2,020 6,200
Total tax that is payable (Rs.) Nil 52,520 1,61,200

3. Income Tax Slabs for individual above 80 years:

Income Tax slabs Tax Rate
Up to Rs.5 lakh Nil
From Rs.5,00,001 to Rs.10,00,000 20% of the total income that is more than Rs.5 lakh + 4% cess
Above Rs.10 lakh 30% of the total income that is more than Rs.10 lakh + Rs.1,00,000 + 4% cess

Given below is an example of how income tax is calculated for 3 individuals (A, B, C):

Components A B C
Annual Salary (Rs.) 5,00,000 10,00,000 15,00,000
Standard deduction (Rs.) 50,000 50,000 50,000
Tax deductions under Section 80C of the Income Tax Act (Rs.) 70,000 1,50,000 1,50,000
House Rent Allowance deductions 82,000 90,000 1,40,000
Gross total income after deductions (Rs.) 2,88,000 7,00,000 11,50,000
Computation of tax on the gross total income
Up to Rs.5 lakh (Rs.) Nil Nil Nil
From Rs,5,00,001 to Rs.10 lakh (Rs.) 40,000 1,00,000
Above Rs.10 lakh (Rs.) 45,000
Total Tax (Rs.) Nil 40,000 1,45,000
Deductions under Section 87A (Rs.) Nil Nil Nil
Additions of cess (Rs.) Nil 1,600 5,800
Total tax that is payable (Rs.) Nil 41,600 1,50,800

For domestic companies, the tax-slabs depend on the turnover, and it is mentioned below:

Turnover Tax Rate
Gross turnover can be a maximum of Rs.250 crore for the previous year 25%
Gross turnover is more than Rs.250 for the previous year 30%

Apart from the above-mentioned tax rate, an additional surcharge and cess are levied. Given below are the details of the surcharge and the cess that will be levied:

  • Cess: 4% of Corporate Tax
  • Surcharge: In case the taxable income is more than Rs.1 crore but less than Rs.10 crore, the surcharge that will be levied is 7%. In case the taxable income is more than Rs.10 crore, the surcharge that will be levied is 12%.
  • Non-resident Indians: For non-resident Indians, irrespective of their age, the exemption limit is up to Rs.2.5 lakh.

Important Points

  • In case your net income is more than Rs.50 lakh but less than Rs.1 crore, apart from a 4% cess, a 10% surcharge is also levied. If the net is above Rs.1 crore, a 15% surcharge is levied.
  • Compared to last year’s budget, the cess has increased from 3% to 4%.

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