Slabs of Income Tax: Check out the Rates of Income Tax for Assessment Year 2019-20 Before Filing the ITR

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The individual taxpayers of India have different tax rates depending on their income level. Depending upon the salary slabs, the Income Tax rates for Assessment Year 2019-20 is given below for the salaried individuals.

The last date for filing the income tax by an individual for the assessment year 2019-20or financial year 2018-19 is 31st July’ 2019 unless it is extended by the Indian government. Any income above Rs.2.5 Lakh is taxed as per the laws of the income tax.

However, the tax payable by an individual depends upon his/her age as well as the tax slab. For people who are under the age of 60 years any income coming in the slab of Rs.2.5 Lakh and Rs.5 Lakh is taxable at the rate of 5%. Further, any income falling in the income slab of Rs.5 Lakh and Rs.10 Lakh is taxable at the rate of 20%. However, any income more than Rs.10 Lakh is taxable at the rate of 30%.

In India, there are basically three tax slabs, which are 5%, 20%, and 30%. Apart from this 4% of cess for ‘Health & Education’ is applicable to the taxable amount. In this way, the three tax slabs become 5.12%, 20.8%, and 31.2% respectively.

For the gross income that one has earned in the Financial Year 2018-19 is assessed in the Assessment Year 2019-20 and the Income Tax Return should be filed by the due date.

For an Individual the Tax Rates are:

AY 2019-20

Taxable Income

Rate of Tax

Up to Rs.2, 50, 000

Nil

Rs.2, 50, 000 to Rs.5, 00, 000

5%

Rs.5, 00, 000 to Rs.10, 00, 000

20%

More than Rs.10, 00, 000

30%

For Senior Citizen Residents Tax Rates are:

AY 2019-20

Taxable Income

Rate of Tax

Up to Rs.3, 00, 000

Nil

Rs.3, 00, 000 to Rs.5, 00, 000

5%

Rs.5, 00, 000 to Rs.10, 00, 000

20%

More than Rs.10, 00, 000

30%

Deducting the rebate as per section 87A of the Income Tax Act.

Adding the Education and Health Cess

For Super Senior Citizens Tax Rates are:

The super senior citizens are those who are of age 80 years or more.

AY 2019-20

Taxable Income

Rate of Tax

Up to Rs.5, 00, 000

Nil

Rs.5, 00, 000 to Rs.10, 00, 000

20%

More than Rs.10, 00, 000

30%

Adding the Education Cess and Surcharge

Education and Health Cess, Surcharge for Assessment Year 2019-20, and Rebate as per Section 87A

When calculating the actual liability of tax for the AY 2019-20as per one’s income, one should keep the following three points in mind:

  • Rebate as per Section 87A: This rebate is available for Indian resident individuals whose total income is not more than Rs.3. 5 Lakh. The rebate amount, in this case, is Rs.2, 500 or 100% of the Income Tax, whichever is less. For the assessment year, 2020-21, this limit is raised to 5 Lakh Rupees and a maximum rebate allowed will be of Rs.12, 500.
  • Education and Health Cess: The applicable surcharge and income tax amount will further be increased by education and health cess. The health and education cess are calculated at 4% rate of the surcharge and income tax.
  • Surcharge: In case the income is between Rs.50 Lakh and Rs.1 Crore, then the income tax amount is increased by some surcharge, which will be at the rate of 10% of the tax, where the total income is more than Rs.50 Lakh but is less than Rs.1 Crore. When the income is more than Rs.1 Crore, the income tax amount will be increased by a surcharge @ the rate of 15% of the tax.

Reason to File Income Tax Return by an Individual

According to the Income Tax Act, the individuals who are less than 60 years are needed to file an income tax return, if his/her total annual income is more than Rs.2.5 Lakhs. If the individuals are more than the age of 60 years, but less than 80 years, then filing income tax is mandatory, if his/her total income is more than Rs.3Lakh annually. All the individuals who are more than 80 years are needed to file the income tax return if their total income is more than Rs.5Lakh.

Penalty - When One Forgets to File Income Tax Return

Whenever an individual fails to file the income tax return, he/she would face the following sequences:

  • May receive a notice from the department of the Income Tax.
  • He/she will not be able to get the refund for excess deduction of TDS.
  • The penalty interest at the rate of 1% every month is charged until the payment date of taxes. For the income tax return of the year 2017-18 and further, a penalty of Rs.5, 000 is charged for the income tax returns that are filed after the due date, but before December 31st. If the income tax returns are filed after December 31st, then a penalty of 10, 000 Rupees is applied. However, the penalty is Rs.1, 000 for the individuals who have an annual salary up to Rs.5Lakhs.
  • Individuals who are unable to set off the losses, the losses that are other than the losses of property are not allowed to be carried forward to the upcoming years, which is set off against the gains of future.

What is the Due Date for Filing ITR by an Individual Who is Salaried

The due date of filing income tax return by a salaried individual is July’ 31st

The ITR Forms that Salaried Individuals Must Use

As per certain criteria, the salaried individuals can use any of the below mentioned ITR forms:

ITR1 Form: When the source of income is limited to pension or salary, then ITR1 form is used. Income from one house property and some other sources excluding the winnings from racehorse and lottery. One should not file the ITR1 form in the following cases:

  • When one has income more than Rs.50Lakhs.
  • The person has Taxable Capital Gains.
  • The income tax assessee has any of the following income sources:
    • One has income from some foreign asset.
    • Having income from some profession or business.
    • Has agricultural income that is more than Rs.5, 000.
    • One is having income from more than one residential properties (house properties).

ITR2 Form: The ITR2 forms should be filed by some individual who is having income from the business head or through some property profession. Any LLP or company or some other legal entity should not file ITR2 form.

Final Words

Filing income tax return has now become very easy as everything is available online. By logging in to the website of Income Tax Department, one can file his/her income tax return simply and quickly.

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