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Ghanshyam ParmarIncome Tax Slabs for F.Y 2019-20 (A.Y. 2020-21)

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Income Tax Slabs for F.Y 2019-20 (A.Y. 2020-21)



Finance Minister Mr.Piyush Goyal tabled the Interim Budget 2019 in the Parliament. In Budget 2019, the following tax provisions have been announced in relation to slabs of income tax slabs and rates :

1. No Tax on Taxable Annual Income up to Rs. 5 Lakh.


The limit of Rebate u/s 87A has been increased from Rs.3.5 Lakhs to Rs.5 Lakhs.
Section 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. As per this provision, if an individual’s taxable income is upto Rs. 5 lakhs then he will get the benefit of Rs. 12500 or the amount of tax whichever is lower. If you are liable to pay tax upto the limit of rebate allowed, then after taking the rebate benefit, no payment will be required to be made for tax amount. For availing the full amount of rebate, the Total Taxable Income of return filer shall be up to Rs 5,00,000 for the Financial Year 2019-20, the Assessment year 2020-21

2. Standard deduction increased from Rs 40,000 to Rs 50,000 for salaried class and pensioners.



3. No change in Income Tax slabs.



Income tax slabs for resident Individual below 60 years of age for F.Y 2019-20 (AY 2020-21)


Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:
                   
Net Income RangeIncome tax rates and cess
Up to Rs 2.5 lakhNil
Rs 2,50,001 to Rs 5,00,0005% of (Total income minus Rs 2,50,000) + 4% cess
Rs 5,00,001 to Rs 10,00,000Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and aboveRs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess

Income tax slabs for resident individual between 60 and 80 years of age (Senior Citizen) for F.Y 2019-20 (AY 2020-21)



Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:
                                       
Net Income RangeIncome tax rates and cess
Up to Rs 3 lakhNil
Rs 3,00,001 to Rs 5,00,0005% of (Total income minus Rs 3,00,000) + 4% cess
Rs 5,00,001 to Rs 10,00,000Rs 10,000 + 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and aboveRs 1,10,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess


Income tax slabs for resident individual above 80 years of age (Super Senior Citizen ) for F.Y 2019-20 (AY 2020-21)



Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:
                               
Net Income RangeIncome tax rates and cess
Up to Rs 5 lakhNil
Rs 5,00,001 to Rs 10,00,00020% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and aboveRs 1,00,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh
           15% of tax where total income exceeds Rs. 1 crore
Education cess: 3% of tax plus surcharge 
Note: A resident individual is entitled for rebate u/s 87A if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.


Income Tax Rates for HUF/AOP/BOI/Any other Artificial Juridical Person for F.Y 2019-20 (AY 2020-21):


                                     
Taxable incomeTax Rate
Up to Rs. 2,50,000
 
Nil
 
Rs. 2,50,000 to Rs. 5,00,000
 
5%
 
Rs. 5,00,000 to Rs. 10,00,000
 
20%
 
 Above Rs. 10,00,000
 
30%
 
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh
           15% of tax where total income exceeds Rs. 1 crore
Education cess: 3% of tax plus surcharge


Tax Rate For Partnership Firm for F.Y 2019-20 (AY 2020-21):


A partnership firm (including LLP) is taxable at 30%.
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 crore
Education cess: 3% of tax plus surcharge 

Income Tax Slab Rate for Local Authority for F.Y 2019-20 (AY 2020-21):


A local authority is taxable at 30%.
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 crore
Education cess: 3% of tax plus surcharge 

Tax Slab Rate for Domestic Company for F.Y 2019-20 (AY 2020-21):


A domestic company is taxable at 30%. However, tax rate is 25% if turnover or gross receipt of the company does not exceed Rs. 50 crore.
Plus:
Surcharge: 7% of tax where total income exceeds Rs. 1 crore
           12% of tax where total income exceeds Rs. 10 crore
Education cess: 3% of tax plus surcharge 

Tax Rates for Foreign Company for F.Y 2019-20 (AY 2020-21):


A foreign company is taxable at 40%
Plus:
Surcharge: 2% of tax where total income exceeds Rs. 1 crore
           5% of tax where total income exceeds Rs. 10 crore
Education cess: 3% of tax plus surcharge

Income Tax Slab for Co-operative Society for F.Y 2019-20 (AY 2020-21):


                             
Taxable income
 
Tax Rate
 
Up to Rs. 10,000
 
10%
 
Rs. 10,000 to Rs. 20,000
 
20% 
 
Above Rs. 20,000
 
 30%
 
Plus:
Surcharge: 12% of tax where total income exceeds Rs. 1 crore
Education cess: 3% of tax plus surcharge
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