The Union Budget for the year 2019 was presented by the Finance Minister Nirmala Sitharaman on the 5th of July 2019. The new tax rates will be applicable from Financial Year 2019-20 corresponding to Assessment Year 2020-21.
Income Tax Slab Rates for FY 2019-20
For Individuals
| Total Income | Tax Rate |
| Up to INR 2,50,000 | NIL |
| INR 2,50,000 to 5,00,000 | 5% |
| INR 5,00,000 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
(for resident or non-resident below the age of 60 years):
| Total Income | Tax Rate |
| Up to INR 3,00,000 | NIL |
| INR 3,00,000 to INR 5,00,000 | 5% |
| INR 5,00,000 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
(for individuals who are of the age of 60 years or more but less than the age of 80 years):
| Total Income | Tax Rate |
| Up to INR 5,00,000 | NIL |
| INR 5,00,000 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
(for individuals of the age of 80 years and above):
An additional 4% Health and Educational Cess will be applicable to the tax amount calculated in the above 3 categories.
10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.
An individual (resident) is entitled to rebate under section 87A if his total income does not exceed INR 5,00,000. The amount of rebate shall be 100% of income-tax or INR 12,500, whichever is less.
For Partnership Firms
A partnership firm that includes LLP is taxable at 30%.
Surcharge: A surcharge of 12% is payable if total income exceeds INR 1 Cr.
Cess: An additional 4% surcharge will be taxable for Health and Education Cess.
For Companies
| Particulars | Tax Rates |
| The total turnover during the previous year doesn’t exceed INR 250 Cr. | 25% |
| Other domestic companies | 30% |
The tax rate for foreign companies is 40%.
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount.
Surcharge: A surcharge of 12% is payable if total income exceeds INR 1 Cr.
| Company | Net Income is between INR 1 Cr. – INR 10 Cr. | Net income exceeds INR 10 Cr. |
| Domestic Company | 7% | 12% |
| Foreign Company | 2% | 5% |
For HUF/AOP/BOI/Any other Artificial Juridical Person
| Net Income Range | Income Tax Rates |
| Up to INR 2,50,000 | NIL |
| INR 2,50,000 to INR 5,00,000 | 5% |
| INR 5,00,000 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 10% of Income Tax when total income exceeds INR 50,00,000 and 15% of income tax when total income exceeds INR 1,00,00,000.
Income Tax slab rates for co-operative society:
| Net Income Range | Income Tax Rate |
| Up to INR 10,000 | 10% |
| INR 10,000 to INR 20,000 | 20% |
| Above INR 20,000 | 30% |
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 12% of tax is applicable when total income exceeds INR 1 Cr.
Income Tax rates for local authority:
The local authority is taxable at 30%.
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 12% of Income Tax when total income exceeds INR 1 Cr.
Surcharge:
The given tax rate slabs are applicable to any individual, HUF or artificial judicial person.
| Nature of Income | Up to INR 50L | More than 50L and up to 1 Cr. | More than 1 Cr. and up to 2 Cr. | More than 2 Cr. and up to 5 Cr. | More than 5 Cr. and up to 5 Cr. | More than 5 Cr. and up to 10 Cr. | More than 10 Cr. |
| Short term capital gain covered under section 111A | NIL | 10% | 15% | 15% | 15% | 15% | 15% |
| Long term capital gain covered under section 112A | NIL | 10% | 15% | 15% | 15% | 15% | 15% |
| Any other Income | NIL | 10% | 15% | 25% | 15% | 37% | 37% |
FAQs
It is the amount that is levied upon the tax payable and not on the income that is generated. In other words, it is a tax that is levied upon the general tax.
For example: if an individual has generated an income of INR 100 over which the tax payable is INR 30, then the surcharge would be 10% of INR 30.
– Calculate your Gross Total Income (GTI)
– Reduce the deductions under sections 80C to 80U
– Calculate your Tax Payable as per Income Tax slabs
– Deduct the amount of rebate allowed
The Financial Year is the year which begins on 1st April and ends on 31st March. It is the year in which income is earned by the taxpayer. The Assessment Year is a year immediately following the Financial Year. The taxpayer needs to file the Income Tax Return (ITR) not in the year in which he/she earns the income but after the end of that year i.e, in the assessment year.
