What is Income Tax Slabs ?
In India, income tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab.
There are three categories of individual taxpayers:
1.Individuals (below the age of 60 years) which includes residents as well as non-residents
2.Resident Senior citizens (60 years and above but below 80 years of age)
3.Resident Super senior citizens (above 80 years of age)
A. Income Tax Slabs for Individuals (below the age of 60 years) (both residents & non-residents) and HUF:
Income Tax Slabs FY 2019-20 FY 2018-19
Up to ₹2,50,000 Nil Nil
₹2,50,001 to ₹5,00,000 5% 5%
₹5,00,001 to ₹10,00,000 20% 20%
Above ₹10,00,000 30% 30%
Cess 4% Health & Education Cess 3% Education Cess
Standard Deduction ₹50,000 ₹40,000
Rebate u/s 87A ₹12,500 ₹2500
Surcharge where total income exceeds ₹50 lakh up to ₹1 crore 10% 10%
Surcharge where the total income exceeds ₹1 crore 15% 15%
B. Income Tax Slabs for Resident Senior citizens (60 years and above but below 80 years of age)
Income Tax Slabs FY 2019-20 FY 2018-19
Up to ₹3,00,000 Nil Nil
₹3,00,001 to ₹5,00,000 5% 5%
₹5,00,001 to ₹10,00,000 20% 20%
Above ₹10,00,000 30% 30%
Cess 4% Health & Education Cess 3% Education Cess
Standard deduction ₹50,000 ₹40,000
Rebate u/s 87A ₹12,500 ₹2,500
Surcharge where total income exceeds ₹50 lakh up to ₹1 crore 10% 10%
Surcharge where the total income exceeds ₹1 crore 15% 15%
C. Income Tax Slabs for Resident Super senior citizens (above 80 years of age)
Income Tax Slabs FY 2019-20 FY 2018-19
Up to ₹5,00,000 Nil Nil
₹5,00,001 to ₹10,00,000 20% 20%
Above ₹10,00,000 30% 30%
Cess 4% Health & Education Cess 3% Education Cess
Standard Deduction ₹50,000 ₹40,000
Rebate u/s 87A ₹12,500 ₹2,500
Surcharge where total income exceeds ₹50 lakh up to ₹1 crore 10% 10%
Surcharge where the total income exceeds ₹1 crore 15% 15%
D. Income Tax Slabs for Domestic Companies
Income Tax Slabs FY 2019-20 FY 2018-19
Gross turnover upto 250 Crore in the Previous Year 25% 25%
Gross turnover more than 250 Crore in the Previous Year 30% 30%
Cess 4% Corporate Tax 4% Corporate Tax
Surcharge where total income exceeds Rs.1 Crore up to Rs.10 crore 7% 7%
Surcharge where the total income exceeds Rs.10 crore 12% 12%