Current Income Tax Slabs: All You Need To Know About New Income Tax Rates

India Business

Here is a list of the current income tax slabs for the FY 2019-20. Read on to know all the revisions that have been made to the income tax slabs in Budget 2020.

Written By Gunjan Shah | Mumbai | Updated On:
current income tax slabs

The current income tax slabs will be applicable for the financial year 2019-20 (the assessment year 2020-21). These income tax slabs have exemptions that depend on the age and the residential status of the applicant. Here is the bifurcation of the taxpayer with regards to his age and residential status:

Also read: BIG: Centre To De-criminalise Income Tax Act & PMLA, Says FM Sitharaman Before Budget 2020

Income Tax exemptions for the current income tax slabs 2019-20

  • Residents below the age of 60 years.
  • Resident senior citizens of age between 60 - 80 years.
  • Resident super senior citizens above 80 years in age.

Based on the income tax exemptions mentioned above, the income tax slabs are drafted for every assessment year. These income tax slabs are to be abided by all the eligible citizens of the country while paying their income tax returns. Here are the current income tax slabs applicable for the financial year 2019-20:

Current Income Tax slabs 2019-20

According to the current income tax slabs, taxation of Income of resident individuals below the age of 60 years is as follows:

  • Income up to ₹ 2.5 lacs is exempt from tax
  • 5% tax levied on income between ₹ 2,50,001 to ₹ 5 lacs
  • 20% tax levied on an income between ₹ 5,00,001 to ₹ 10 lacs
  • 30% tax levied on an income above ₹ 10 lacs

Here is detailed information all the income tax slabs for resident individuals below the age of 60 years

Income Tax Slabs

Income tax rates and cess

Up to ₹ 2.5 lacs

Exempt from income taxes

₹ 2,50,001 to ₹ 5 lacs

5% of the total income minus ₹ 2,50,000 + 4% cess

₹ 5,00,001 to ₹ 10 lacs

₹ 12,500 + 20% of total income minus ₹ 5 lacs + 4% cess

₹ 1,000,001 and above

₹ 1,12,500 + 30% of total income minus ₹ 10 lacs + 4% cess

According to the current income tax slabs, taxation of Income of resident individuals between the age of 60-80 years (senior citizens) is as follows:

  • Income up to ₹ 3 lacs is exempt from tax
  • 5% tax levied on an income between ₹ 3,00,001 to ₹ 5 lacs
  • 20% tax levied on an income between ₹ 5,00,001 to ₹ 10 lacs
  • 30% tax levied on an income above ₹ 10 lacs

Here is detailed information all the income tax slabs for resident individuals between the age of 60-80 years

Income Tax Slabs

Income tax rates and cess

Up to ₹ 3 lacs

Exempt from income taxes

₹ 3,00,001 to ₹ 5 lacs

5% of the total income minus ₹ 3,00,000 + 4% cess

₹ 5,00,001 to ₹ 10 lacs

₹ 10,000 + 20% of total income minus ₹ 5 lacs + 4% cess

₹ 1,000,001 and above

₹ 1,10,000 + 30% of total income minus ₹ 10 lacs + 4% cess

Also read: Budget 2020: Across 7 Budgets Of Modi Govt, Here Are The Key Changes In Income Tax Policy

According to the current income tax slabs, taxation of Income of resident individuals between the age of 60-80 years (senior citizens) is as follows:

  • Income up to ₹ 5 lacs is exempt from tax
  • 20% tax levied on an income between ₹ 5,00,001 to ₹ 10 lacs
  • 30% tax levied on an income above ₹ 10 lacs

Here is detailed information all the income tax slabs for resident individuals above the age of 80 years

Income Tax Slabs

Income tax rates and cess

Up to ₹ 5 lacs

Exempt from income taxes

₹ 5,00,001 to ₹ 10 lacs

20% of total income minus ₹ 5 lacs + 4% ces

₹ 1,000,001 and above

₹ 1,00,000 + 30% of total income minus ₹ 10 lacs + 4% cess

According to the Budget 2019 announcement, no changes have been proposed in the current income tax slabs and rates. A rebate of ₹ 12,500 will be available for all taxpayers with taxable Income up to ₹ 5 lac. This rebate has been made available under the Section 87A of the Income Tax Act. According to the information available, the standard deduction for the financial year 2019-20 will be ₹ 50,000.

Are there any surcharges applicable on the income tax slabs?

For the financial year 2019-20, surcharge rates have been introduced for the super-rich. These surcharges are imposed for people with an income of over ₹ 50 lacs. Here is information about all the surcharges that apply to taxpayers that qualify under the current income tax slabs 2019-20:

Income Tax Slabs

Surcharge (%)

Income above ₹ 50 lacs but below ₹ 1 crore

10

Income above ₹ 1 crore but below ₹ 2 crores

15

Income above ₹ 2 crores but below ₹ 5 crores

25

Income above ₹ 5 crores

37

Also read: Budget Cuts Personal Income Tax, Raises Customs Duty

What is the new, optional regime?

Recently, the Budget for the year 2020 was announced by the finance ministry of India. The Budget for 2020 has proposed for a new, optional tax regime that can be opted by the taxpayers. Here is a breakdown of the current income tax slabs that fall under the new, optional regime of the Budget 2020:

Total Income (₹)

Simplified, optional tax rate

Up to ₹ 2.5 lacs

Nil

From ₹ 2,50,001 to ₹ 5 lacs

5%

From ₹ 5,00,001 to ₹ 7.5 lacs

10%

From ₹ 7,50,001 to ₹ 10 lacs

15%

From ₹ 1,000,001 to ₹ 12.5 lacs

20%

From ₹ 1,250,001 to ₹ 15 lacs

25%

Above ₹ 1,500,001

30%

Does the taxpayer have to forgo all the deductions and exemptions if the person opts for the new tax regime?

If a person wishes to opt for the new, optional tax regime, he/she will have to forgo the tax exemptions and deductions applicable under the sections 80C, 80D. However, section 80CCD’s tax-breaks will not be forgone while opting for the new, optional tax regimes’ income tax slabs.

Can the user change between the new and the old tax regime every year?

If you are a regular taxpayer who is willing to switch from the old regime into the new one or vice versa, you can do that. However, there is a condition to make the switch. The requirement states that users can switch from one tax regime to another if they do not have business income. The switch can only take place once every financial year, at the beginning of the financial year.

Do the users still have to pay the CESS and the surcharges?

Yes, the users have to pay the CESS and the surcharges even in the new tax regime. CESS would be applicable at the regular 4% rate, and the surcharges applicable according to the income tax limit are also to be taken into account. The new tax regime does not exempt the taxpayers from CESS and surcharges.

Also read: Budget 2020: Govt Intends To Remove All Income Tax Exemptions In Long Run, Says FM

What are the tax liability rates?

Resident individual below 60 years of age

Net Income Range

Income Tax Rates and CESS Net Taxable Income Post Budget Tax Liability

Increase in Tax due to CESS

Up to ₹ 2.5 lacs

Nil

2,50,000

-

-

₹ 2,50,001 to ₹ 5 Lacs

5% of total income minus ₹ 2,50,000 + 4% CESS

5,00,000 13,000

125

₹ 5,00,001 to ₹ 10 lacs

₹ 12,500 + 20% of total income minus ₹ 5,00,000 + 4% CESS 1,000,000

1,17,000

1,125

₹ 1,000,001 and above

₹ 1,12,500 + 30% of total income minus ₹ 1,000,000 + 4% CESS

1,500,000

2,73,000

2,625

Resident individual between the age of 60-80 years

Net Income Range

Income Tax Rates and CESS Net Taxable Income Post Budget Tax Liability

Increase in Tax due to CESS

Upto ₹ 3 lacs

Nil

3,00,000

-

-

₹ 3,00,001 to ₹ 5 Lacs

5% of total income minus ₹ 3,00,000 + 4% CESS 5,00,000

10,400

100

₹ 5,00,001 to ₹ 10 lacs

₹ 12,500 + 20% of total income minus ₹ 5,00,000 + 4% CESS 1,000,000

1,14,400

1,100

₹ 1,000,001 and above

₹ 1,10,000 + 30% of total income minus ₹ 1,000,000 + 4% CESS

1,500,000

2,70,400

2,600

Resident above the age of 80 years

Net Income Range

Income Tax Rates and CESS Net Taxable Income Post Budget Tax Liability

Increase in Tax due to CESS

Upto ₹ 5 lacs

Nil

5,00,000

-

-

₹ 5,00,001 to ₹ 10 Lacs

20% of total income minus ₹ 5,00,000 + 4% CESS

1,000,000

1,04,000

1000

₹ 1,000,001 and above

₹ 1,00,000 + 30% of total income minus ₹ 1,000,000 + 4% CESS

1,500,000

2,60,000

2,500

How is tax liability calculated?

All tax liabilities are calculated after availing the deductions and the other tax-exemptions available to the individual.

How to calculate the total Income?

The total income of an individual can be calculated by adding all the sources of earnings such as salary, pension, and others.

How do I get information about my payments and other details?

Once you or some other person has deducted the tax amount and paid it to the government, the total amount of tax deposited by you will be reflected in the Form 26AS against your PAN. The statement of your account can be downloaded from the income tax e-filling website. You can use the same portal to raise complaints in case of wrong details.

How can I pay my taxes?

Taxpayers can pay tax online or offline. For the offline method, an individual is required to visit the bank branch and pay the tax due along with the challan. Another way of filling taxes online is by using net banking facility of any of the authorised banks.

Also read: BJP's Tejasvi Surya Calls Budget 2020 'progressive', Hails Attempt To Simplify Income Tax

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