Income Tax Slabs for AY 2019-20

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An individual citizen's income is assessed based upon the existing income tax slabs or brackets. These tax slabs are classified into four broad categories based on the age and type of income, three of which are meant for individuals. As for the assessment year of 2019-20, anybody who has an income of over Rs. 2.5 Lakh can be taxed as per the existing income tax slabs.

What are the Different Income Tax Slabs for the Assessment Year of 2019-20?

Each financial year starts from the 1st of April and goes up to 31st of March. So, the assessment year for any citizen's income would be the year immediately followed by the financial year. As for the assessment year of 2019-20, the income tax slabs are as follows:

Income tax Slabs for Individuals who are Less than 60 years old

For individuals who are less than 60 years old, there is no change in taxation from the previous year. This means if the said individual's income is Rs. 2,50,000 or less for that year, then that individual cannot be taxed. However, if the individual in question has an income anywhere between Rs. 2,50,001 and Rs. 5,00,000, then he or she can be taxed at the rate of 5 per cent per annum.

If the income exceeds Rs. 5 Lakh, but doesn't exceed Rs. 10 Lakh, then the said individual can be taxed at the rate of 20 per cent per annum. However, in case an individual's income exceeds Rs. 10 Lakh, then he or she can be taxed at the rate of 30 per cent per annum.

One other important thing about the income tax slabs for the assessment year 2019-20 is the health and education surcharge, which stands at four per cent of the income tax levied in a year, for any individual who is less than 60 years old.

Taxable Income Tax Rate
Up to Rs. 2.5 Lakh Nil
Rs. 2.5 Lakh to Rs. 5 Lakh 5%
Rs. 5 Lakh to Rs. 10 Lakh 20%
Above Rs. 10 Lakh 30%

Income Tax Slabs for Individuals Between the ages of 60 and 80 years

Any individual citizen who falls between the ages of 60 and 80 years can't be taxed if their income is Rs. 3,00,000 or less. In case their income is above Rs. 3,00,000 and below Rs. 5,00,000, they can be levied an income tax at the rate of five per cent per annum, with an annual surcharge of four per cent on income tax.

However, if the said individual's income exceeds Rs. 5,00,000, but falls below Rs. 10,00,000, then that individual can be taxed at the rate of 20 per cent per annum with an additional annual surcharge of four per cent on income tax. But in case the individual's income exceeds Rs. 10,00,000, then he or she can be levied an income tax at the rate of 30 per cent per annum with an education and health surcharge of four per cent per annum on income tax.

Taxable Income Tax Rate
Up to Rs. 3 Lakh Nil
Rs. 3 Lakh to Rs. 5 Lakh 5%
Rs. 5 Lakh to Rs. 10 Lakh 20%
Above Rs. 10 Lakh 30%

Income Tax Slabs for Individuals who are More than 80 years

There is no income tax for individuals who are more than 80 years of age, and whose income doesn't exceed Rs. 5,00,000, according to the new income tax slabs and rates. However, if the said individual's income exceeds Rs. 5,00,000, but doesn't exceed Rs. 10,00,000, then that individual can be taxed at the rate of 20 per cent per annum, along with an education and health surcharge of four per cent on income tax.

But if that individual's income exceeds Rs. 10,00,000, then the said individual can be taxed at the rate of 30 per cent per annum, along with an education and health surcharge of four per cent on income tax.

Taxable Income Tax Rate
Up to Rs. 5Lakh Nil
Rs. 5 Lakh to Rs. 10 Lakh 20%
Above Rs. 10 Lakh 30%

Income Tax Slabs for Domestic Companies

In the case of domestic companies, where the turnover of the said company stands at Rs. 250 Crore or fewer in the year gone by, the company can be taxed at a rate of 25 per cent per annum, with an additional health and education surcharge of four per cent per annum on income tax.

However, in case the gross turnover exceeds Rs. 250 Crore, then the company can be taxed at a rate of 30 per cent per annum, along with an additional health and education surcharge of four per cent per annum on income tax.

Income tax slabs for dividends

According to Section 10(34) of the Income Tax Act, if the dividend earned doesn't exceed Rs. 10 Lakh, then no tax can be levied on the said income earned through dividends. However, in case the income earned through the dividend does exceed Rs. 10 Lakh, then a tax of 10 per cent can be levied on it, according to Section 115BBDA of the Income Tax Act.

Income Tax Slabs for NRIs

In the case of NRIs, no tax can be levied if the said NRI's income is found to be less than Rs. 2,50,000. However, if that income exceeds Rs. 2,50,000, but is found to be less than Rs. 5,00,000 per annum, then a tax of 5 per cent can be levied per annum, with an additional surcharge amount of 4 per cent per annum on income tax. If the NRI's income exceeds Rs. 5,00,000, but doesn't exceed Rs. 10,00,000 in a year, then the said NRI can be taxed at the rate of 20 per cent per annum, with an additional surcharge of 4 per cent per annum on income tax.

However, if the said NRI's income is found to be more than Rs. 10,00,000 per annum, then that NRI can be taxed at the rate of 30 per cent per annum with an additional surcharge of four per cent on income tax.

Income Tax Slabs for Freelancers

If the freelancer's income is Rs. 2,50,000 or below, then no income tax can be levied for that freelancer. However, if it exceeds Rs. 2,50,000, but falls below Rs. 5,00,000, then the freelancer can be levied a tax of five per cent a year, with a health and education surcharge of four per cent per annum on income tax.

If the freelancer's income exceeds Rs. 5,00,000, but is well within Rs. 10,00,000, then he or she can be taxed at the rate of 20 per cent per annum, including an additional health and education surcharge of four per cent per year on income tax.

But in case the income of the freelancer in question exceeds Rs. 10,00,000, then the said freelancer can be taxed at a rate of 30 per cent per annum, which also includes a health and education surcharge of four per cent per annum on income tax.

Income Tax Slabs for Pensioners

All those pensioners don't have to pay income tax, whose income falls below Rs. 3 Lakh per annum. For all those pensioners whose income exceeds Rs. 3 Lakh, but does not exceed Rs. 5 Lakh, they can be levied an income tax at the rate of five per cent per annum, including the additional health and education surcharge of four per cent per annum on income tax.

In case the pensioner's income exceeds Rs. 5 Lakh, but falls well within Rs. 10 Lakh, then that pensioner can be taxed at the rate of 20 per cent per annum, with an additional health and education surcharge of four per cent per annum on income tax. But if the said pensioner's income exceeds Rs. 10 Lakh, then he or she can be taxed at the rate of 30 per cent per annum, along with a health and education surcharge of 4 per cent per annum on income tax.

Income Tax Slabs for Doctors

As for doctors, any doctor whose income falls at or below Rs. 2,50,000 doesn't need to pay income tax. For all those doctors whose incomes exceed Rs. 2,50,000, but doesn't exceed Rs. 5,00,000, an income tax is levied at the rate of five per cent per annum, with an additional health and education surcharge of 4 per cent per annum on income tax.

Any doctor who has an income of more than Rs. 5,00,000, but less than Rs. 10,00,000 can be levied an income tax at the rate of 20 per cent per annum, with an additional health and education surcharge of 4 per cent per annum on income tax.

And for doctors whose incomes are more than Rs. 10,00,000 a year, they can be levied income taxes at applicable rates of 30 per cent per annum. This too comes with an additional health and education surcharge of 4 per cent per annum on income tax.

Additional Facts about Surcharges

If the total income exceeds Rs. 50 lakhs per year, but doesn't exceed Rs. 1 Crore, then a surcharge of 10 per cent of the income tax can be levied. However, if that said income does exceed Rs. One Crore, then a surcharge of 15 per cent of the income tax can be levied. This is pretty much the case with all individual citizens.

In the case of a domestic company, if the income is between Rs. One Crore and Rs. 10 Crore, then a surcharge of seven per cent can be levied on the income tax. However, if the income or turnover is found to be more than Rs. 10 Crore, then a surcharge of 12 per cent can be levied on the income tax.

It is the duty of each citizen of the country to pay his or her income taxes. Failing to do so can and must have devastating consequences. So, don't forget to pay your taxes. File your returns today.

Disclaimer: The data in the article above has been taken from the official website of the Income Tax Department of India. Please refer the official website for further details and changes.

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