Income tax slabs and tax rates for FY 2019-20 are applicable to those who earn more than Rs.2.5 lakh p.a. The rate at which individuals are taxed depends on the level of income they earn, with rates charged at nil, 5%, 20% and 30%.
In February 2019, the government announced certain changes in the structure of the tax slabs. As per the Interim Budget 2019, which came into effect from 1 April 2019, a Rs.12,500 rebate under Section 87A of the Income Tax Act, 1961, will be available to individuals who have an income of up to Rs.5 lakh. However, no changes have been made to the tax slabs and rates for the FY 2019-2020.
Types of Income Tax Slabs
Depending on the individual’s age, various tax slabs are proposed by the government. The three different types of individual taxpayers are mentioned below:
- Individuals who are below the age of 60 years. It can include individuals who are residents as well as non-residents.
- Senior citizens who are above the age of 60 years and below the age of 80 years and are resident Indians.
- Super senior citizens who are above the age of 80 years old and are resident Indians.
Given below are the three various tables for the latest Income Tax Slabs for the FY 2019-2020
1. Income Tax Slab for Individual who are below 60 years:
| Income Tax slab | Tax Rate |
| Up to Rs.2.5 lakh | Nil |
| From Rs.2,50,001 to Rs.5,00,000 | 5% of the total income that is more than Rs.2.5 lakh + 4% cess |
| From Rs.5,00,001 to Rs.10,00,000 | 20% of the total income that is more than Rs.5 lakh + Rs.12,500 + 4% cess |
| Income of above Rs.10 lakh | 30% of the total income that is more than Rs.10 lakh + Rs.1,12,500 + 4% cess |
Individuals who have an income of less than Rs.5 lakh are eligible for tax deductions under Section 87A
2. Income Tax Slab between 60-80 years:
| Income Tax slabs | Tax Rate |
| Up to Rs.3 lakh | Nil |
| From Rs.3,00,001 to Rs.5,00,000 | 5% of the total income that is more than Rs.3 lakh + 4% cess |
| From Rs.5,00,001 to Rs.10,00,000 | 20% of the total income that is more than Rs.5 lakh + Rs.10,500 + 4% cess |
| Income of above Rs.10 lakh | 30% of the total income that is more than Rs.10 lakh + Rs.1,10,000 + 4% cess |
3. Income Tax Slabs for individual above 80 years:
| Income Tax slabs | Tax Rate |
| Up to Rs.5 lakh | Nil |
| From Rs.5,00,001 to Rs.10,00,000 | 20% of the total income that is more than Rs.5 lakh + 4% cess |
| Above Rs.10 lakh | 30% of the total income that is more than Rs.10 lakh + Rs.1,00,000 + 4% cess |
FAQs about Income Tax Slabs
Do I need to file Income Tax Return (ITR) if my annual income is below Rs.2.5 lakh?
Answer: You need not file an ITR if your yearly income is below Rs.2.5 lakh but you should file a ‘Nil Return’ just for the record as there are many cases where you can produce them as proof of your employment. For instance, you can provide your ITR while applying for a loan or passport.
How is the income of a taxpayer classified?
Under Section 14 of the Income Tax Act, the taxpayer’s income has been classified under 5 different income heads such as Salaries individuals, Capital gains, Gains/Profits from profession or business, Income from house property, Income from other sources.
Does family pension come under salary income during taxation?
No, family pension will not be taxed under salary income but as ‘income from other sources.’
Who can claim rebate under Section 87A?
Rebate under Section 87A can be claimed by any resident Indian whose total annual income is below Rs.5 lakh. The maximum available rebate under 87A is Rs.12,500.
Will my income be taxed if I am an agriculturist?
Any income which is generated from agriculture or its allied activities will not be taxed. However, it will be considered for rate purpose while calculating tax on any non-agricultural income that you may have.