Budget 2019 has made no changes in the Income Tax Slabs for FY 2019-20 (AY 2020-21). However, the individuals with taxable income of up to Rs 5 lakh would get full rebate through Section 87A of the Income Tax Act.
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What is Income Tax?
Income Tax is a direct tax in India. Income tax is levied directly on your income by the government. The income from your salary, business, profession or income from other sources is taxed as per income tax slabs. At present, there are different income tax rates for different slabs. So, I thought to write a blog post on Income Tax Slabs for FY 2019-20 (AY 2020-21).
Primary Sources of Income
Income from the following sources is considered taxable as per Income Tax Act of India:
1) Income from salary
2) Income from house property
3) Profits and gains of business and profession
4) Capital gains income
5) Income from other sources
Income Tax Slabs for FY 2019-20 (AY 2020-21)
The income tax is levied directly on the income of a person. Income tax is charged as per income tax rates prescribed by the Indian government in the budget every financial year.
Categories of Individual Taxpayers
There are three categories of individual taxpayers:
1. Individuals below the age of 60 years.
2. Senior citizens (Age above 60 years but below 80 years)
3. Super senior citizens (Age above 80 years)
Income Tax Slabs for FY 2019-20 (AY 2020-21)
The tables below give the income tax slabs & rates applicable for the Financial Year 2019-20 (Assessment Year 2020-21). No separate income tax slabs for men and women. As of today, there are three income tax slabs based on age.
Income Tax Slabs for Individuals below the age of 60 years
| Slabs for Income | Income Tax Rate |
| Income upto Rs. 2,50,000 | No Tax |
| Income between Rs. 2,50,001 – Rs. 500,000 | 5% |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% |
| Income above Rs. 10,00,000 | 30% |
Income Tax Slabs for Senior Citizens (Age above 60 years but below 80 years)
| Slabs for Income | Income Tax Rate |
| Income upto Rs. 3,00,000 | No Tax |
| Income between Rs. 3,00,001 – Rs. 500,000 | 5% |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% |
| Income above Rs. 10,00,000 | 30% |
Income Tax Slabs for Super Senior Citizens (Age above 80 years)
| Slabs for Income | Income Tax Rate |
| Income upto Rs. 5,00,000 | No Tax |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% |
| Income above Rs. 10,00,000 | 30% |
Surcharge:
10% surcharge on income tax, where the total income exceeds Rs. 50 lakhs up to Rs. 1 crore.
15% surcharge on income tax, where the total income exceeds Rs. 1 crore.
Cess:
4% Health and Education cess on the income tax and applicable surcharge.
What is the Financial Year (FY)?
The year in which you earn the income is known as the financial year. The financial year (FY) starts from April 1 and ends on March 31 of the following year.
What is an Assessment Year (AY)?
The assessment year is the year following the financial year in which the income is assessed. The assessment year (AY) starts from April 1 and ends on March 31, immediately succeeding a financial year (FY).
Income Tax Slabs for FY 2019-20 (AY 2020-21)
Related post: Income Tax Slabs for FY 2018-19 (AY 2019-20)
Related post: How to save tax? | Income tax saving options