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All about Income Tax Slabs in India

What do Income Tax Slab Rates entail?

Income Tax Slab Rates for Individuals and HUF

For the FY 2019-20, the Income Tax Slab Rates for Individuals and HUF (below 60 years of age) is as follows:

Income tax slabs

Rate of Taxation

Up to ₹2.5 Lakh

Nil

Between ₹2,50,001 and ₹5 Lakh

5% of your total income that exceeds ₹2.5 Lakh

Between ₹5,00,001 and ₹10 Lakh

₹12,500 + 20% of your total income that exceeds ₹5 Lakh

Above ₹10 Lakh

₹1,12,500 + 30% of your total income that exceeds ₹10 Lakh

According to the announcements made in the 2019 Budget, if you are a taxpayer with a total income of up to ₹5 Lakh, you will be eligible to avail a rebate of ₹12,500. This rebate is set under Section 87A of the Income Tax Act, 1961.

On top of this, you will also be levied with an additional 4% Health and Education cess, applicable to the tax amount that is calculated as above.  

Income Tax Slab Rates for Senior Citizens

For the FY 2019-20, Income Tax Slab Rates for Senior Citizens (above 60 years of age but below 80 years) is as follows:

Income tax slabs

Rate of Taxation

Up to ₹3 Lakh

Nil

From ₹3,00,001 – ₹5 Lakh

5% of your total income that exceeds ₹3 Lakh

From ₹5,00,001 – ₹10 Lakh

₹10,000 + 20% of your total income that exceeds ₹5 Lakh

Above ₹10 Lakh

₹1,10,000 + 30% of your total income that exceeds ₹10 Lakh

Along with this, you will also be levied with an additional 4% Health and Education cess, which is applicable to the tax amount calculated.

Income Tax Slab Rates for Super Senior Citizens

For the FY 2019-20, Income Tax Slab Rates for Super Senior Citizens (above 80 years of age) is as follows:

Income tax slabs

Rate of Taxation

Up to ₹5 Lakh

Nil

From ₹5,00,001 – ₹10 Lakh

20% of your total incomes exceeding ₹5 Lakh

Above ₹10,00,001

₹1,00,000 + 30% of your total income exceeding ₹10 Lakh

Like the above two instances, super-senior citizens are also liable to pay an extra 4% Health and Education Cess on the tax amount calculated.

According to the budget announcement of 2019, no new changes were announced for income tax exemption limits or tax slabs. So, if you have filed your taxes for the FY 2018-19, you will simply have to follow the same rules for FY 2019-20 and get your taxes paid and subsequently filed.

Now, if your annual income exceeds ₹50 Lakh, you will also have to pay an additional surcharge for FY 2019-20. 

Surcharges for Individuals with a Taxable income exceeding ₹50 Lakh –

Taxable Income

Surcharge

For those with an income above ₹50 Lakh but below ₹1 Crore

10%

For those with an income of above ₹1 Crore but below ₹2 Crore

15%

For those with an income of above ₹2 Crore but below ₹5 Crore

25%

For those with an income of above ₹5 Crore

37%

While the above income tax slabs in India are valid for individuals and HUFs, the taxation slabs applicable for domestic companies are different.

Income Tax Rate in India for Domestic Companies for FY 2019-20

Gross turnover particulars

Tax rate

Up to ₹400 Crore for the financial year 2017-18

25%

More than ₹400 Crore for the financial year 2017-18

30%

When the company has opted for Section 115BA

25%

When the company has opted for Section 115BAA

22%

When the company has opted for Section 115BAB

15%

Apart from these income tax rates in India, domestic companies will also be levied the following cess and surcharges –

Health and Education Cess – 4% 

Net income particulars

Surcharge rate on the income tax amount

For companies whose net income exceeds ₹1 Crore but is less than ₹10 Crore

7%

For companies whose net income exceeds ₹10 Crore

12%

But, is it crucial to remember that this surcharge rate for companies that have opted for taxability under Section 115BAA and Section 115BAB will be 10%, regardless of their total income amount. 

Key points to remember about Income Tax Rates in India

Tips to save Income Tax if you are a Salaried Individual

FAQs about Income Tax Slab Rates in India