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Income Tax Slab For FY 2019-20: A Ready Reckoner

03-Apr-2019

With the start of the new financial year 2019-20 from this month, it is time to start your financial planning for saving taxes. As announced by the then finance minister Piyush Goyal in his budget, the tax slab remains the same for the new year. Your tax outgo calculation might however change as there has been some changes in rebates and standard deduction.

Individuals below the age of 60 will continue to enjoy tax-free income of up to 2.5 lakh, and for those earning between 2.5 lakh to 5 lakh will have to pay a tax of 5%, for income between5 lakh and 10 lakh, the tax outgo will be of 20% while any income above 10 lakh attracts an income tax of 30%.

However, there is good news for those earning up to 5 lakh. Under Section 87A of the Income Tax Act, such individuals will get a tax rebate of up to 12,500. This will effectively bring down the tax outgo to nil.

For salaried taxpayers, standard deduction has been raised from the current 40,000 to 50,000. This will provide an additional tax benefit of 4,700 crore to more than 3 crore salary earners and pensioners.

A health and education cess of 4% will be added to the total tax outgo besides a surcharge if your income crosses 50 lakh.

Income tax rates for individuals below 60 years:

Net Income after 80C deduction Tax Benefit
FY 2018-19 FY 2019-20 FY 2018-19 FY 2019-20
Net Income Increase in Standard Deduction Net Income
5,10,000 10,000 5,00,000 13,520 - 13,520
10,60,000 10,000 10,50,000 1,35,720 1,32,600 3,120
58,10,000 10,000 58,00,000 17,79,492 17,76,060 3,432
1,08,10,000 10,000 1,08,00,000 36,54,378 36,50,790 3,588
 
Resident Individual who is a senior citizen
 
FY 2018-19
Net Taxable Income (after deductions) 300,000 350,000 400,000 500,000 1,000,000
Tax - 2,500 5,000 10,000 110,000
Rebate - 2,500 - - -
Balance Tax - - 5,000 10,000 110,000
Cess - - 200 400 4,400
Total - - 5,200 10,400 114,000
 


FY 2019-20
Net Taxable Income (after deductions) 300,000 350,000 400,000 500,000 1,000,000
Tax - 2,500 5,000 10,000 110,000
Rebate - 2,500 5,000 10,000 -
Balance Tax - - - - 110,000
Cess - - - - 4,400
Total - - - - 114,000
Saving - - 5,200 10,400 -

Source : Live Mint

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