Income Tax Calculation FY 2019-20 (2020-21 AY) IT Slab Rates 2019-20. Income Tax Slab Rates FY 2019-20 (2020-21 AY) IT for Salaried Employees 2019-20. The Central Government has made clear on the Income Tax Slab Rates for the Financial Year 2019-20 (2020-21 Assessment Year) and released the Detailed IT Slab Rates. Basing on these IT Slab Rates, TDS will be deducted from Salaries for the Salaried Employees and Tax to be paid for other than salaried employees. Let us see the Complete Income Tax Details for 2019-20. IT for Individuals.
Income Tax Calculation FY 2019-20 (2020-21 AY) IT Slab Rates 2019-20
As per the First Schedule of the Income Tax Bill, The Income Tax Slab Rates for 2019-20 Financial Year are as follows:
Rates of income-tax for below 60 Years
| Description | Income Tax Applicable Rate |
|---|---|
| Total income does not exceed Rs. 2,50,000 | Nil. |
| Total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 | 5 per cent of the amount by which the Total income exceeds Rs. 2,50,000; www.apteachers.in (Rs 12,500 Tax Rebate applicable u/S 87A- Get Details Click Here) + 4% cess |
| Total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | Rs.12,500 plus 20 per cent. of the amount by which the Total income exceeds Rs. 5,00,000 + 4% cess |
| Total income exceeds Rs. 10,00,000 | Rs. 1,12,500 plus 30 per cent. of the amount by which the Total income exceeds Rs.10,00,000. + 4% cess |
Income Tax Rates for Individuals aged 60-80 Years
| Description | Income Tax Applicable Rate |
|---|---|
| Total income does not exceed Rs. 3,00,000 | Nil |
| Total income exceeds Rs.3,00,000 but does not exceed Rs. 5,00,000 | 5 per cent of the amount by which the Total income exceeds Rs. 3,00,000; + 4% cess |
| Total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | Rs.10,000 plus 20 per cent of the amount by which the Total income exceeds Rs. 5,00,000 + 4% cess |
| Total income exceeds Rs. 10,00,000 | Rs. 1,10,000 plus 30 per cent of the amount by which the Total income exceeds Rs.10,00,000. + 4% cess |
What are the changes in new Income tax slab rates for F.Y. 2019-20(A.Y. 2020-21)?
- No Tax on Taxable Annual Income up to Rs. 5 Lakh. The limit of Rebate u/s 87A has been increased from Rs.3.5 Lakhs to Rs.5 Lakhs.
- Section 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. As per this provision, if an individual’s taxable income is upto Rs. 5 lakhs then he will get the benefit of Rs. 12500 or the amount of tax whichever is lower. If you are liable to pay tax upto the limit of rebate allowed, then after taking the rebate benefit, no payment will be required to be made for tax amount. For availing the full amount of rebate, the Total Taxable Income of return filer shall be up to Rs 5,00,000 for the Financial Year 2019-20, the Assessment year 2020-21 Details Click Here.
- Standard deduction increased from Rs 40,000 to Rs 50,000 for salaried class and pensioners.
- No change in Income Tax slabs for individuals but a hike in surcharge
- The new budget has hiked the surcharged rates to another level. It is as high as 35% for an individual earning income above 5 crore and surcharge of 27% for the income group of 2-5 crore and 15% for income group of 1-2 crore and 10% for 50 lakh-1 crore income group individuals.
- Those companies whose turnover does not exceed INR 400 crore is liable to 25% tax rate and above 400 crore turnover 30% tax.
- No income tax on notional income from second house .From FY 2019-20, people with a second house, lying vacant will not be required to pay any income tax on the notional rent from this house. Till FY 2018-19, an individual having a second house which was not let out was required to calculate notional rent and pay tax on it accordingly. The notional rent is the amount of the rent which the individual would have earned if the house was let out by him
- Sec 80 EEA 1.5 Lakhs for Home Loan Interest : A deduction for interest payments up to Rs 1,50,000 is available under Section 80EEA. This deduction is over and above the deduction of Rs 2 lakh for interest payments available under Section 24 of the Income Tax Act
- TDS threshold limit hiked to Rs 40,000
- External benchmark to decide interest rates on loans
- No transfer of physical shares from April 1, 2019.
- New GST rules and rules for housing sector
- Investing capital gains in two houses
- Reporting of LTCG gains from equity in ITR
