Income tax is getting high priority topic in India. The department is getting automation in place to effective calculate tax in India. In the last the couple of years, several million new Indian came under the income tax slab. There is many misunderstanding when it comes to Tax Calculation or Tax understanding.

Lets look into the Tax Slab as per the current 2019-2020 fiscal year –

A. Following is the Income Tax Rate Slab for the Financial Year 2019-20 (Assessment Year 2020-21 for Resident Individual or Non-Resident Individual or HUF or Association of Person or Body of Individuals or Artificial Juridical Person below 60 years:

Taxable Income Tax Rate Applicable
Up to Rs.250,000 NIL
From Rs.250,000 to Rs.500,000 5%
From Rs.500,000 to Rs.1,000,000 20%
Above Rs.1,000,000 30%
  • Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less.
  • Surcharge:
    • If total income is greater than Rs.5,000,000 but less than Rs.10,000,000, income tax will be increased by 10% of such tax.
    • If total income is greater than Rs.10,000,000 but less than Rs.20,000,000, income tax will be increased by 15% of such tax.
    • If total income is greater than Rs.20,000,000 but less than Rs.50,000,000, income tax will be increased by 25% of such tax.
    • If total income is greater than Rs.50,000,000 but less than Rs.50,000,000, income tax will be increased by 37% of such tax.
  • Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

Example One:    Mr. ABC’s total income in FY 2019-20 (AY 2020-21) is Rs.510,000. His/her tax liability will be as follows:

Taxable Income Tax Rate Applicable    Tax Amount
First Up to Rs.250,000 NIL
Next Rs.250,000 5% Rs.12,500
Next Rs.10,000 20% Rs.2,000
Total Tax Rs.14,500
Add: Health and Education Cess @ 4% Rs.580
Total Tax Liability of Mr. ABC will be Rs.15,080

B. In case of a resident senior citizen who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year.

Taxable Income Tax Rate Applicable
Up to Rs.300,000 NIL
From Rs.300,000 to Rs.500,000 5%
From Rs.500,000 to Rs.1,000,000 20%
Above Rs.1,000,000 30%

C. In case of a resident super senior citizen who is 80 years or more at any time during the previous year

Taxable Income Tax Rate Applicable
Up to Rs.500,000 NIL
From Rs.500,000 to Rs.1,000,000 20%
Above Rs.1,000,000 30%

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