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FY 2019-20

Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2019-20 – Part I

Up to ₹2,50,000*Nil
₹2,50,001 to ₹5,00,0005% of total income exceeding ₹2,50,000
₹5,00,001 to ₹10,00,000₹12,500 + 20% of total income exceeding ₹5,00,000
Above ₹10,00,000₹1,12,500 + 30% of total income exceeding ₹10,00,000
  • No tax for individuals with income less than ₹ 2,50,000
  • 0%-5% tax with income ₹ 2.5 lacs to 5 lacs for different age groups
  • 20% tax with income ₹ 5 lacs to 10 lacs
  • 30% tax with income above ₹ 10 lacs
  • A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:– Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19– Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20
  • Investments upto ₹ 1.5 lacs under Sec 80C can save ₹ 46,800 in taxes.

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2019-20)Income (Rs)
Gross Salary 7,00,000
Less: Standard deduction For Salary Person (50,000)6,50,000
Less: Deduction under section 80C1,50,000
Total Taxable income5,00,000
Income-tax (@ 5% from Rs 2.5 to 5 lakh)12,500
Less: Rebate u/s 87A12,500
Total Tax LiabilityNIL
Source of income (FY 2019-20)Income (Rs)
Gross Salary7,10,000
Less: Standard deduction For Salary Person (50,000)6,60,000
Less: Deduction under section 80C1,50,000
Total Taxable income5,10,000
Income-tax (@ 5% from Rs 2.5 to 5 lakh)12,500
Less: Rebate u/s 87A0
Total Tax Liability15,080