INCOME TAX RATES (SLABS) FOR FINANCIAL YEAR 2019-20
(ASSESSMENT YEAR 20-21)
For Male Individuals below 60 years (Resident of India)
INCOME
UP TO 250000 0
250001 TO 300000 5%
300001 TO 500000 5%
500001 to 1000000 20%
 EXCEEDING 1000000   30%

 

Add:

  • Health Education Cess @ 4% on Income Tax payable and Surcharge.
  • Surcharge:-
    • 10% on income above Rs. 50 lakh but below 1 crore,
    • 15% on income above one crore but below 2 crore,
    • 25% on income above 2 crore but less than 5 crore and
    • 37% on income above 5 crore.
  • Rebate under section 87-A , is available equal to the amount of tax or Rs.12,500/=, whichever is less if the taxable income including capital gains is up to Rs.5 lakh after allowing all permissible deductions.
Illustration:
Total Taxable Income of Mr. X for Financial Year 2019-20 is Rs.1200000/=
Calculate Income Tax Payable. Mr. X is 55 years old.
Solution:
 Slabs Taxable Tax Rate Income
Income Tax
Up to 250000 250000 0 0
250001 to 500000 250000 5% 12500
500001 to 1000000 500000 20% 100000
1000001 to 1200000 200000 30% 60000
TOTAL 1200000 172500
Income Tax 172500
Add: H & E.C. @ 4% 6900
Total Tax Payable 179400

 

 

For Women below 60 years (Resident of India)
INCOME TAX RATES
UP TO 250000 0
250001 TO 500000 5%
500001 TO 1000000 20%
1000001 and above 30%

Add:

  • Health Education Cess @ 4% on Income Tax payable and Surcharge.
  • Surcharge:-
    • 10% on income above Rs. 50 lakh but below 1 crore,
    • 15% on income above one crore but below 2 crore,
    • 25% on income above 2 crore but less than 5 crore and
    • 37% on income above 5 crore.

Rebate:- A rebate up to Rs.12500/= will be allowed if the taxable income is up to Rs.5 lakh after allowing all permissible deductions.

Illustration:

Total Taxable Income of Mrs. for financial year 2019-20 is Rs.1400000/=. Calculate income tax payable. Mrs. X is 58 years old.

Solution:-

 Slabs Taxable Tax Rate Income
Income Tax
Up to 250000 250000 0 0
250001 to 500000 250000 5% 12500
500001 to 1000000 500000 20% 100000
1000001 to 1400000 400000 30% 120000
TOTAL 1400000 232500
Income Tax 232500
Add:H & E.C. @ 4% 9300
Total Tax Payable 241800

 

For Senior Citizen 60 years and above but below 80 years

 

INCOME TAX RATES
UP TO 300000 0
300001 TO 500000 5%
500001 TO 1000000 20%
1000001 and above 30%

 

Add:

  • Health Education Cess @ 4% on Income Tax payable and Surcharge.
  • Surcharge:-
    • 10% on income above Rs. 50 lakh but below 1 crore,
    • 15% on income above one crore but below 2 crore,
    • 25% on income above 2 crore but less than 5 crore and
    • 37% on income above 5 crore.

Rebate:- A rebate up to Rs.12500/= will be allowed if the taxable income is up to Rs.5 lakh after allowing all permissible deductions.

For Very Senior Citizen 80 years and above

 

INCOME TAX RATES
UP TO 500000 0
500001 TO 1000000 20%
1000001 and above 30%

 

Add:

  • Health Education Cess @ 4% on Income Tax payable and Surcharge.
  • Surcharge:-
    • 10% on income above Rs. 50 lakh but below 1 crore,
    • 15% on income above one crore but below 2 crore,
    • 25% on income above 2 crore but less than 5 crore and
    • 37% on income above 5 crore.

 

INCOME TAX RATES FOR REGISTERED PARTNERSHIP FIRM

(FINANCIAL YEAR 2019-20)

Flat rate @ 30% on net income of registered partnership firm.

Add:

Health Education Cess @ 4% on Income Tax payable and Surcharge.

Surcharge shall be levied on income tax @ 12% where taxable income including capital gain exceeds Rs. 1 crore.

 

INCOME TAX RATES FOR DOMESTIC COMPANIES FOR FINANCIAL YEAR 2019-20

Flat rate @ 25% on net income of domestic companies (whether public limited or private limited) if the turnover of the company is up to Rs.400 crore.

Flat rate @ 30% on net income of domestic companies (whether public limited or private limited) if the turnover of the company is more than Rs.400 crore.

Add:-

Surcharge :-

  • Surcharge shall be levied on income tax @ 7% where taxable income exceeds Rs. 1 crore but does not exceeds 10 crore.
  • If total income exceeds Rs.10 crore then surcharge will be added @ 12%.

Health Education Cess @ 4% on Income Tax payable and Surcharge.

As announced by finance minister on 20.09.19 the income tax rates for certain type of companies have been changed with effect from financial year 2019-20 as under:-

  1. Any domestic company who does not avail any exemption and incentive, will pay income tax @ 22%. The effect rates of tax will be for this type of company @ 25.17% including cess and surcharge. No minimum alternative tax (MAT) also will be paid by such company.
  2. If any company, who wants to enjoy the exemptions/incentives, has to pay tax at @ 30% + surcharge + cess.  Minimum Alternative Tax (MAT) @ 15% in place of @18.50% for these companies
  3. Any domestic manufacturing company who is incorporated on or after 01.10.2019, has to pay the income tax @ 15%. This type of companies can not avail any exemption/incentives. The effective rate of tax will be 17.01% including surcharge and cess. These companies have to start the production on or before 31.03.2023. No Minimum Alternative Tax (MAT), is to be paid by such type of companies.

 

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