| Old Tax Slab |
Rate |
Tax Slab as per (Sec 115BAC) |
Rate |
| Upto Rs 3,00,000 |
NIL |
Upto Rs 2,50,000 |
NIL |
| Rs 3,00,001 - Rs
5,00,000 |
5% |
Rs 2,50,001 - Rs
5,00,000 |
5% |
| Rs 5,00,001 - Rs
10,00,000 |
20% |
Rs 5,00,001 - Rs
7,50,000 |
10% |
|
|
Rs 7,50,001 - Rs
10,00,000 |
15% |
| Above Rs 10,00,000 |
30% |
Rs 10,00,001 - Rs
12,50,000 |
20% |
|
|
Rs 12,50,001 - Rs
15,00,000 |
25% |
|
|
Above Rs 15,00,000 |
30% |
| Old Tax Slab |
Rate |
Tax Slab as per (
Sec 115BAC) |
Rate |
| Upto Rs 5,00,000 |
NIL |
Upto Rs 2,50,000 |
NIL |
|
|
Rs 2,50,001 - Rs
5,00,000 |
5% |
| Rs 5,00,001 - Rs
10,00,000 |
20% |
Rs 5,00,001 - Rs
7,50,000 |
10% |
|
|
Rs 7,50,001 - Rs
10,00,000 |
15% |
| Above Rs 10,00,000 |
30% |
Rs 10,00,001 - Rs
12,50,000 |
20% |
|
|
Rs 12,50,001 - Rs
15,00,000 |
25% |
|
|
Above Rs 15,00,000 |
30% |
| Old Tax Slab |
Rate |
Tax Slab as per (Sec 115BAC) |
Rate |
| Upto Rs 2,50,000 |
NIL |
Upto Rs 2,50,000 |
NIL |
| Rs 2,50,001 - Rs
5,00,000 |
5% |
Rs 2,50,001 - Rs
5,00,000 |
5% |
| Rs 5,00,001 - Rs
10,00,000 |
20% |
Rs 5,00,001 - Rs
7,50,000 |
10% |
|
|
Rs 7,50,001 - Rs
10,00,000 |
15% |
| Above Rs 10,00,000 |
30% |
Rs 10,00,001 - Rs
12,50,000 |
20% |
|
|
Rs 12,50,001 - Rs
15,00,000 |
25% |
|
|
Above Rs 15,00,000 |
30% |
| Income Tax Slab | Tax Rate |
| Up to Rs 2.5 lakh | NIL |
| Rs 2.5 lakh to Rs 5 lakh | 5% (Tax rebate of Rs 12,500 available under section 87A) |
| Rs 5 lakh to Rs 7.5 lakh | 10% |
| Rs 7.5 lakh to Rs 10 lakh | 15% |
| Rs 10 lakh to Rs 12.5 lakh | 20% |
| Rs 12.5 lakh to Rs 15 lakh | 25% |
| Rs 15 lakh and above | 30% |
-
The tax calculated on the basis of such rates will be subject to health and education cess of 4%.
-
Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.
-
Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.
-
Leave Travel Allowance (LTA)
-
House Rent Allowance (HRA)
-
Conveyance
-
Daily expenses in the course of employment
-
Relocation allowance
-
Helper allowance
-
Children education allowance
-
Other special allowances [Section 10(14)]
-
Standard deduction
-
Professional tax
-
Interest on housing loan (Section 24)
-
Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)
-
Points to remember while opting for the new tax regime:
-
Option to be exercised on or before the due date of filing return of income for AY 2021-22
-
In case a taxpayer has a business income and exercised the option, he/she can withdraw from the option only once. A business taxpayer withdrawing from the optional tax regime has to follow the regular income tax slabs.
According to the current income tax laws in India, the income tax rate on resident individuals varies based on their age. There are different tax slabs applicable to the individuals for the financial year 2018-19 and 2019-20. For instance, a resident individual, aged below 60 years, with an income less than Rs 2.5 lacs is exempt from paying income tax.
Given below are the tables for the latest income tax slabs for FY 2018-19 and FY 2019-20.
Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2019-20 – Part I
| Income Tax Slab | Tax Rate for Individual & HUF Below the Age Of 60 Years |
| Up to ₹ 2,50,000* | Nil |
| ₹ 2,50,001 to ₹ 5,00,000 | 5% of total income exceeding ₹ 2,50,000 |
| ₹ 5,00,001 to ₹ 10,00,000 | ₹ 12,500 + 20% of total income exceeding ₹ 5,00,000 |
| Above ₹ 10,00,000 | ₹ 1,12,500 + 30% of total income exceeding ₹ 10,00,000 |
-
No tax for individuals with income less than ₹ 2,50,000
-
0%-5% tax with income ₹ 2.5 lacs to 5 lacs for different age groups
-
20% tax with income ₹ 5 lacs to 10 lacs
-
30% tax with income above ₹ 10 lacs
-
A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:
– Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19
– Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20
-
Investments upto ₹ 1.5 lacs under Sec 80C can save ₹ 46,800 in taxes.
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Let’s understand the tax calculation for rebate with the help of an example:
| Source of income (FY 2019-20) | Income (Rs) |
| Salary (6,50,000) | |
| Less: Standard deduction ( 50,000) | 6,00,000 |
| Interest on fixed deposit | 50,000 |
| Gross total income | 6,50,000 |
| Less: Deduction under section 80C | 1,50,000 |
| Total income | 5,00,000 |
| Income-tax (@ 5% from Rs 2.5 to 5 lakh) | 12,500 |
| Less: Rebate u/s 87A | 12,500 |
| NIL |
Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2019-20 – Part II
| Income Tax Slabs | Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years |
| Income up to Rs 3,00,000* | No tax |
| Income from Rs 3,00,000 – Rs 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Let’s understand the tax calculation for rebate with the help of an example:
| Source of income (FY 2019-20) | Income (Rs) |
| Salary (4,00,000) | |
| Less: Standard deduction ( 50,000) | 3,50,000 |
| Income from house property | 2,50,000 |
| Interest on fixed deposit | 50,000 |
| Gross total income | 6,50,000 |
| Less: Deduction under section 80C | 1,50,000 |
| Total income | 5,00,000 |
| Income-tax (@ 5% from Rs 3 to 5 lakh) | 10,000 |
| Less: Rebate u/s 87A | 10,000 |
| NIL |
Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2019-20 – Part III
| Income Tax Slabs | Tax Rate for Super Senior Citizens (Aged 80 Years And Above) |
| Income up to Rs 5,00,000* | No tax |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Let’s understand the tax calculation for a rebate with the help of an example:
| Source of income (FY 2019-20) | Income (Rs) |
| Salary (3,50,000) | |
| Less: Standard deduction ( 50,000) | 3,00,000 |
| Income from house property | 2,50,000 |
| Interest on fixed deposit | 1,00,000 |
| Gross total income | 6,50,000 |
| Less: Deduction under section 80C | 1,50,000 |
| Total income | 5,00,000 |
| Income-tax (nil below Rs 5 lakh) | NIL |
| Less: Rebate u/s 87A | NIL |
| NIL |
Surcharge applicable to the individuals covered in Part I, II and III:
| Income limit | Surcharge Rate on the amount of income tax |
| Net income exceeds Rs 50 lakh but doesn’t exceed Rs 1 crore | 10% |
| Net income above Rs 1 crore but doesn’t exceed Rs 2 crore | 15% |
| Net income exceeds Rs 2 crore but doesn’t exceed Rs 5 crore | 25% |
| Net income exceeds Rs 5 crore | 37% |
Income Tax Slabs for Domestic Companies for FY 2019-20 – Part IV
| Turnover Particulars | Tax Rate |
| Gross turnover upto 400 Cr. in the FY 2017-18 | 25% |
| Gross turnover exceeding 400 Cr. in the FY 2017-18 | 30% |
| Where the company opted for Section 115BA | 25% |
| GWhere the company opted for Section 115BAA | 22% |
| Where the company opted for Section 115BAB | 15% |
In addition cess and surcharge is levied as follows:
Cess: 4% of corporate tax
Surcharge applicable:
| Income Limit | Surcharge Rate on the amount of income tax |
| Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore | 7% |
| Net income exceeds Rs.10 Crore | 12% |
However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.
Tax slabs and tax rates for AY 2019-20 (FY 2018-19):
Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2018-19 – Part I
| Income Tax Slabs | Tax Rate for Individual & HUF Below the Age Of 60 Years |
| Up to ₹ 2,50,000* | Nil |
| ₹ 2,50,001 to ₹ 5,00,000 | 5% of total income exceeding ₹ 2,50,000 |
| ₹ 5,00,001 to ₹ 10,00,000 | ₹ 12,500 + 20% of total income exceeding ₹ 5,00,000 |
| Above ₹ 10,00,000 | ₹ 1,12,500 + 30% of total income exceeding ₹ 10,00,000 |
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2018-19 – Part II
| Income Tax Slabs | Tax Rate for 60 Years Old Or More but Less than 80 Years Old |
| Income up to Rs 3,00,000* | No tax |
| Income from Rs 3,00,000 – Rs 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2018-19 – Part III
| Income Tax Slabs | Tax Rate for Super Senior Citizens (Aged 80 Years And Above) |
| Income up to Rs 5,00,000* | No tax |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Surcharge applicable to the individuals covered in Part I, II and III:
| Income limit | Surcharge Rate on the amount of income tax |
| Net income exceeds Rs.50 Lakhs but doesn’t exceed Rs. 1 Crore | 10% |
| Net income exceeds Rs.1 Crore | 15% |
Income Tax Slabs for Domestic Companies for FY 2018-19 – Part IV
| Turnover Particulars | Tax Rate |
| Gross turnover upto 250 Cr. in the FY 2016-17 | 25% |
| Gross turnover exceeding 250 Cr. in the FY 2016-17 | 30% |
In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax
Surcharge applicable:
| Income Limit | Surcharge Rate on the amount of income tax |
| Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore | 7% |
| Net income exceeds Rs.10 Crore | 12% |