Union Budget 2019: Here are the income tax slabs, including the surcharge on the super rich

Announcing the new set of tax reforms, Union Finance Minister Nirmala Sitharaman, on Friday, has said that while the income tax slabs will remain unchanged, a super-rich tax i.e a surcharge will be levied on individuals having a taxable income of 2-5 crore and above 5 crore, of 3 % and 7 % respectively.

"I propose to enhance surcharge on individuals having taxable income from 2 crore to 5 crore and 5 crore and above so that effective tax rates for these
two categories will increase by around 3 % and 7 % respectively," she said.

Talking about the aim of the new tax proposals, Sitharaman said that while the proposals are aimed at stimulating growth in multiple sectors, it mainly focused on simplifying the tax administration.

"My tax proposals will aim to stimulate growth, incentivise affordable housing, and encourage start-ups by releasing entrepreneurial spirits. It will also be geared towards promoting the digital economy. I aim to simplify tax administration and bring greater transparency," she added.

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Here are the unchanged tax slabs for the three categories of taxable citizens:

Resident below 60 years of age:

• Income up to Rs 2.5 lakh is exempt from tax
• Income tax of 5% between Rs 250,001 and Rs 5 lakh 
• Income tax of 20% between Rs 500,001 and Rs 10 lakh
• Income tax of 30% above Rs 10 lakh.

Resident senior citizens of age between 60 years and above but below 80 years:

• Income up to Rs 3 lakh is exempt from tax for senior citizens
• Income from Rs 300,001 to Rs 5 lakh is taxed at 5%
• Income tax of 20% from Rs 500,001 to Rs 10 lakh 
• Income tax of 30% above Rs 10 lakh.

Resident super senior citizens of above 80 years of age:

• Income up to Rs 5 lakh is exempt from tax 
• Income from Rs 500,001 to Rs 10 lakh is taxed at 20%
• Income tax of 30% above Rs 10 lakh.
• Income tax of 30% above Rs 10 lakh.

Union Budget 2019: How Are Tax Slabs Decided?

The income tax slab is applicable to:

• Any resident individual with a regular source of income
• A Hindu Undivided Family (HUF)
• A company
• A firm
• An Association of person (AOP) or a Body of Individuals (BOI) whether incorporated or not
• Any local authority