Income Tax Slab 2019-20
India’s income tax estimate is based on allocating varying tax rates to the multiple annual income classes known as slabs. The actual annual taxable revenue for the calculation of income tax is determined in compliance with the provisions of various parts of the Income Tax Act, providing for separate income inclusions and exclusions for the same income.
What is an Income Tax Slab?
The government levies income Tax Slab on all income produced by individuals and corporations as per their income. These pay levels are referred to as the Income Tax Slab. These tax slabs adjust from year to year, as per the Income Tax Act 1961, and are bifurcated according to age, level of income and gender.
The Income Tax Slab can actually be classified as follows:
- Individuals get to pay zero taxes on the money they make.
- A 5 per cent Income Tax slab is levied on defined incomes.
- As per the Income Tax Slab 2020, money is paid at 10 per cent, 15 per cent, 20 per cent, 25 per cent, and 30 per cent.
Income Tax Slab for Resident Individuals
Income Tax Slab have been graded according to age and amount of revenue for an Indian citizen. Income tax slabs range from Zero to 30 per cent for Indian citizens below 60 years of age. Income Tax Slab for the years 2020-2021 are listed below.
Tax Slab for Individuals below 60 Years of Age
| Income Range Per Annum | New Slabs For FY 2020-21, AY 2021-22 | Old Slabs, Mandatory Upto FY 2019-20 And Optional From FY 2020-21 |
| Up to ₹ 2.50 Lakh | No Tax | No tax |
| Above ₹ 2.50 Lakh to ₹ 5 Lakh | 5% | 5% |
| Above ₹ 5 Lakh to ₹ 7.50 Lakh | 10% | 20% |
| Above ₹ 7.50 Lakh to ₹ 10 Lakh | 15% | 20% |
| Above ₹ 10 Lakh to ₹ 12.50 Lakh | 20% | 30% |
| Above ₹ 12.50 Lakh to ₹ 12.50 Lakh | 25% | 30% |
| Above ₹ 15 Lakh | 30% | 30% |
| Rebate under section 87(A) | 100% tax rebate subject to a maximum of ₹ 2,500 available to a resident individual whose total income does not exceed ₹ 35 Lakh | 100% tax rebate subject to a maximum of ₹ 2,500 available to a resident individual whose total income does not exceed ₹ 3.50 Lakh |
Cess, in both cases, at 4 per cent of the tax applicable. A surcharge of 10% for revenue above Rs. 50 Lakh and 15% for revenue above 1 Cr.
Under the old income tax system, a refund of ~ 12,500 is eligible. In comparison, the same rebate is applicable in the current income tax system if the total taxable income does not surpass Rs. 5 Lakh.
The cumulative reduction in tax liabilities under the new tax slabs will range from 25,000 for earning 7.50 Lakh per year to 75,000 for a person earning Rs. 15 Lakh or more year. However, if one were to include the above deductions in the current tax regime, the real benefits would be smaller.
Income Tax Slab for Senior Citizens (age more than 60 years but less than 80 years FY 2019-20)
| Income Range Per Annum | New Slab For FY 2020-21, AY 2021-22 | Tax Rate FY 2019-20, AY 2020-21 |
| Up to ₹ 3 Lakh | No Tax | No Tax |
| Above ₹ 3 Lakh to ₹ 5 Lakh | 5% | 5% |
| Above ₹ 5 Lakh to ₹ 7.50 Lakh | 10% | 20% |
| Above ₹ 7.50 Lakh to ₹ 10 Lakh | 15% | 20% |
| Above ₹ 10 Lakh to ₹ 12.50 Lakh | 20% | 30% |
| Above ₹ 12.50 Lakh to ₹ 15 Lakh | 25% | 30% |
| Above ₹ 15 Lakh | 30% | 30% |
| Rebate under section 87(A) | 100% tax rebate subject to a maximum of ₹ 2,500 available to a resident individual whose total income does not exceed ₹ 3.50 Lakh | 100% tax rebate subject to a maximum of ₹ 2,500 available to a resident individual whose total income does not exceed ₹ 3.50 Lakh |
Cess at 4% of tax applicable in all cases. Surcharge at 10% for income above ₹ 50 Lakh and at 15% for income above ₹ 1 Cr
The rebate of ₹ 12,500 is applicable for all income under the old income tax regime. Whereas it is available only for income up to ₹ 5 Lakh under the new income tax regime.
Senior Citizens Tax Slab (age more than 80 years FY 2019-20)
| Income Range Per Annum | New Slab For FY 2020-21, AY 2021-22 | Tax Rate FY 2019-20, AY 2020-21 |
| Up to ₹ 2.50 Lakh per annum | No Tax | No Tax |
| Up to ₹ 5 Lakh per annum | No Tax | No Tax |
| Above ₹ 5 Lakh to ₹ 7.50 Lakh | 10% | 20% |
| Above ₹ 7.50 Lakh to ₹ 10 Lakh | 15% | 20% |
| Above ₹ 10 Lakh to ₹ 12.50 Lakh | 20% | 30% |
| Above ₹ 12.50 Lakh to ₹ 15 Lakh | 25% | 30% |
| Above ₹ 15 Lakh | 30% | 30% |
Cess at 4% of tax applicable in all cases. Surcharge at 10% for income above ₹ 50 Lakh and 15% for income above ₹ 1 Cr.
Income Tax Slab for Other Entities
The income tax slab has been classified for other firms, such as corporations and domestic companies, based on their annual revenue, as described below:
New Income Tax Slab for Firms and Domestic Companies FY 2019-20
| Tax Head | Firms | Domestic Companies |
| Income Tax for turnover up to ₹ 400 Cr | 30% | 25% |
| Income Tax for turnover above ₹ 400 Cr | 30% | 30% |
| A surcharge as % of income tax | 12% of tax in case the total income exceeds ₹ 1 Cr | 7% of tax in case income is more than ₹ 1 Cr but less than ₹ 10 Cr. |
| 10% of tax in case income is more than ₹ 10 Cr. | ||
| Cess as % of tax and surcharge | 3% of tax plus surcharge | 3% of tax plus surcharge |
For companies and domestic companies, the table above highlights the new tax slabs. The tax treatment varies from the tax treatment of persons and HUFs in all cases.
Important Things to Remember while opting New Tax Regime
In the 2020 Union Budget, an option between the old and the current tax system is given to people to determine their income tax obligation. If a person opts to go with the old regime, the exemptions and deductions can be used. In comparison, 70 of the widely used deductions and allowances are not available in the current tax regime.
Should you opt for a new tax regime or go with the old regime?
A mixed bag with both good and poor is the optional tax regime proposed in the new budget. Although it helps people whose income comes under the slab up to ⁇ 15 Lakh, if your income falls above the bracket of ⁇ 15 Lakh, it will not go in your favour. The same applies to 70 deductions, including the house rent allowance, medical care premium and holiday allowance, if you opt for a new tax system.
A comparison of old and new Income Tax Slab Rates
New vs Old Income Tax Regime
Scenario -I: In case you are salaried and claiming deductions under Section 80C, 80D, the standard deduction and HRA exemption
As the regular deduction, the deductions and exemptions claimed will be 50,000, 1.50 Lakh under section 80C, 25,000 under section 80D, and HRA exemptions, differing at each amount of income.
The HRA exemption would be 1.50 Lakh at a gross salary of 7.50 Lakh, the HRA exemption would be 2 Lakh at a gross salary of ⁇ 12.50 Lakh, the HRA exemption would be 2.50 Lakh at a gross salary of 15 Lakh, the HRA exemption would be 3 Lakh, and the HRA exemption would be 4 Lakh at a gross salary of 20 Lakh. For each slab, the tax gain will be:
| Gross Salary | Tax Payable In Current IT Slab | Tax Payable In New IT Slab | Tax Saving (Payable) |
| At ₹ 7.50 Lakh | – | 39,000 | -39,000 |
| At ₹ 10 Lakh | 28,600 | 78,000 | -49,400 |
| At ₹ 12.50 Lakh | 70,200 | 1,30,000 | -59,800 |
| At ₹ 15 Lakh | 1,11,800 | 1,95,000 | -83,200 |
| At ₹ 20 Lakh | 2,34,000 | 3,51,000 | -1,17,000 |
Scenario -II: In case you are claiming the most common deductions, i.e., deduction under Section 80C, 80D, and standard deduction
As a cumulative deduction claimed, the normal deduction of 50,000, deduction under Section 80C of 1,50,000, and deduction under Section 80D of 25,000 would together sum to 2.25 Lakh. For any slab, the tax gain will be:
| Gross Salary | Tax Payable In Current IT Slab | Tax Payable In New IT Slab | Tax Saving (Payable) |
| At ₹ 7.50 Lakh | – | 39,000 | -39,000 |
| At ₹ 10 Lakh | 28,600 | 78,000 | -49,400 |
| At ₹ 12.50 Lakh | 70,200 | 1,30,000 | -59,800 |
| At ₹ 15 Lakh | 1,11,800 | 1,95,000 | -83,200 |
| At ₹ 20 Lakh | 2,34,000 | 3,51,000 | -1,17,000 |
Scenario -III: In case you are claiming only the standard deductions
The tax benefit under each slab when you claim only the standard deduction would be:
| Gross Salary | Tax Payable In Current IT Slab | Tax Payable In New IT Slab | Tax Saving (Payable) |
| At ₹ 7.50 Lakh | 54,600 | 39,000 | 15,600 |
| At ₹ 10 Lakh | 1,06,600 | 78,000 | 28,600 |
| At ₹ 12.50 Lakh | 1,79,400 | 1,30,000 | 49,400 |
| At ₹ 15 Lakh | 2,57,400 | 1,95,000 | 62,400 |
| At ₹ 20 Lakh | 4,13,400 | 3,51,000 | 62,400 |
Budget Highlights 2021
Taxation Related
- Senior citizens aged 75 years of age with only pension and interest payments are also excluded from making returns on income taxes.
- Tax holidays on affordable housing projects have been extended until 31 March 2022 for 1 year.
- Tax holidays for start-ups have grown by another year until 31 March 2022.
- Payment of dividends in TDS-exempt REIT (Real estate investment trusts) and INVIT (Infrastructure investment trusts).
Tax Assessment and Filing Related
- To ease the filing of IT returns, details of capital gains and interest from banks, post offices, etc., will be pre-filled.
- For individual taxpayers, a nationwide face-less income tax appeal tribunal would be created.
- For small taxpayers, a dispute resolution committee would be formed.
- The reopening time period for income-tax appraisal proceedings has declined from 6 years to 3 years.
Savings Related
- The contractor would not be permitted to subtract the employer’s late payment to the EPF for workers.
Others
- An expenditure of Rs. 35,000 crore for vaccines for Covid-19.
FAQs for Income Tax Slab
✅ What is the income tax rate for 2019-20?
The latest income tax slab for 2019-20 is as follows:
| Income Slab | Tax For Individual Below 60 Years Of Age |
|---|---|
| Upto ₹ 2,50,000 | NIL |
| ₹ 2,50,001 to ₹ 5,00,000 | 5% |
| ₹ 5,00,001 to ₹ 1,00,00,000 | 20% |
| Above ₹ 10,00,000 | 30% |
✅ What are tax exemptions for 2019?
The Income Tax Act, 1961 lists out various expenses and investments exempted from calculating income tax. There’s a detailed table listing out the income tax exemptions that you can avail of in 2019.
✅ What is the standard deduction for FY 2019-20?
A standard deduction of ₹ 50,000 is available for salaried individuals for FY 2019-20.
✅ How is the tax calculated on salary?
Income tax on salary is calculated after taking various exemptions such as HRA exemption, LTA exemption, interest on the home loan. After arriving at gross salary, income from other sources is added to get total income, from which other applicable deductions are deducted to arrive at total taxable income. It is then on the total taxable income that income tax is calculated based on the applicable slab rate and cess.
✅What is up to ₹ 5 Lakh tax?
For the income up to ₹ 5 Lakh, there is effectively no income tax due to a tax rebate available to individuals up to ₹ 12,500.
✅Is the new tax slab beneficial?
The new tax slab is beneficial to those assesses whose income tax calculation does not include too many commonly used deductions. To know more about Income Tax slabs in India, visit the Dialabank website. You can also contact us via call on the number 9878981144.
✅What is the income tax slab proposed in the new income tax regime?
In the new Income tax regime, the slabs are:
✅Do I have to forgo all the tax exemptions and deductions as per the new income tax regime?
As per the new income tax regime proposed in the budget, you will have to forgo all the common income tax deductions and exemptions available such as deductions under section 80C, 80D, except for the employer’s contribution NPS (80CCD (2)).
✅What is the senior citizen income tax Slab for 2019-20?
The income tax slab rates applicable to senior citizens for 2019-20 are:
| Income Slab | Tax Rate FY 2019-20, AY 2020-21 |
| Up to ₹ 3,00,000 | No Tax |
| ₹ 3,00,001 to ₹ 5,00,000 | 5% |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| Above ₹ 10 Lakh | 30% |
| Rebate under section 87(A) | 100% tax rebate subject to a maximum of ₹ 2,500 available to a resident individual whose total income does not exceed ₹ 3.50 Lakh |
✅Is there a choice between a new and old income tax regime?
Yes, you can choose between the new and old income tax regime in each financial year provided you don’t have business income.
✅Is the tax rebate of ₹ 12,500 under section 87A available in the new regime? 
Yes, the taxpayer can still claim the tax rebate of ₹ 12,500 if the annual income does not exceed ₹ 5 Lakh in a financial year.
✅Are cess and surcharge still payable under the new income tax regime?
Yes, 4% of reimbursing and surcharge as pe your income is also applicable to the new income tax regime.
✅What is the income limit for income tax slab 2019-20?
As per tax slab 2019-20, the income limit to which no income tax is levied is ₹ 2.50 Lakh for an individual below 60 years and ₹ 3 Lakh for senior citizens.