Your income from salary, business or other income like income from fixed/recurring deposits etc are taxed as per income tax slabs. Full Budget 2019 presented on July5, 2019 has made NO changes in the tax slab. The announcement that individuals with income up to Rs 5 Lakh would get full rebate is through Section 87A. There is also increase in the surcharge for person with net taxable income of more than Rs 2 crores.
- Rebate under Section 87A changed from Rs 2,500 to Rs 12,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs (from Rs 3.5 Lakhs)
- Surcharge of 25% if income is between Rs 2 to 5 crore and 37% if the income exceeds Rs 5 crore (this has increased from 15% earlier) – Changed in July 5, 2019 budget
- Standard Deduction raised for Salaried & Pensioners from Rs 40,000 to Rs 50,000
- In case of 2 house, tax on notional rent not applicable on second house and can be shown as self-occupied
- TDS threshold for bank/post office/co-operative society deposits – raised to Rs. 40,000 per year from 10,000 per year.
- Sec 54 exemption allowed on long term capital gains selling of one residential property to buy 2 residential property once in lifetime.
The government has not changed the tax slab but given the benefit through Sec 87A as it solves two things:
- It provides No benefit to people with taxable income of more than Rs 5 Lakh
- Individuals with income of more than Rs 2.5 lakh still need to file their income tax returns, keeping the return filer high
Learn about Section 87A of income Tax
Income Tax Slabs:
There is NO separate tax slab for men and women. Earlier women used to have slight benefit over men in terms of lower taxes!
The tax slabs are determined on age of person. As of today there are 3 slab rates based on age:
- Below 60 years of age
- Senior Citizens (60 to less than 80 years of age)
- Very Senior Citizens (80+ years of age)
The table below gives the tax slab rates:
Income Tax Slab for HUFs & Individuals (below 60 years – for both Men & Women)
| Income Slab | Tax Rate |
| Income up to Rs 2,50,000 | No Tax |
| Income from Rs 2,50,000 – 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
- Surcharge:
- 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
- 15% surcharge on income tax if the total income exceeds Rs 1 crore but below Rs 2 crore
- 25% surcharge on income tax if the total income exceeds Rs 2 crore but below Rs 5 crore
- 37% surcharge on income tax if the total income exceeds Rs 5 crore
- Health and Education Cess: 4% cess on income tax including surcharge
- Rebate under Section 87A: Rs 12,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs
Income tax slab for senior citizens (60 years to less than 80 years old) (both men & women)
| Income Slab | Tax Rate |
| Income up to Rs 3,00,000 | No Tax |
| Income from Rs 3,00,000 – 5,00,000 | 5% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
- Surcharge:
- 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
- 15% surcharge on income tax if the total income exceeds Rs 1 crore but below Rs 2 crore
- 25% surcharge on income tax if the total income exceeds Rs 2 crore but below Rs 5 crore
- 37% surcharge on income tax if the total income exceeds Rs 5 crore
- Health and Education Cess: 4% cess on income tax including surcharge
- Rebate under Section 87A: Rs 12,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs
Income tax slab for Very senior citizens (80 years or more) (both men & women)
| Income Slab | Tax Rate |
| Income up to Rs 5,00,000 | No Tax |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
- Surcharge:
- 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
- 15% surcharge on income tax if the total income exceeds Rs 1 crore but below Rs 2 crore
- 25% surcharge on income tax if the total income exceeds Rs 2 crore but below Rs 5 crore
- 37% surcharge on income tax if the total income exceeds Rs 5 crore
- Health and Education Cess: 4% cess on income tax including surcharge
Income tax slab for Domestic Companies:
| Company Turnover | Tax Rate |
| Less than 400 crore (enhanced in July budget) | 25% |
| More than 400 crore | 30% |
- Surcharge:
- 7% surcharge if the income is more than 1 crore but less than 10 crore
- 12% surcharge if the income is more than 10 crore
- Health and Education Cess: 4% cess on income tax including surcharge
Also Read: 25 Tax Free Incomes & Investments in India
Income tax slab for Partnership Firm:
A partnership firm (including LLP) income is taxable at 30%.
- Surcharge: 12% surcharge on income tax if the total income exceeds Rs 1 crore
- Health and Education Cess: 4% cess on income tax including surcharge
Capital Gains Tax Rates:
Some income related to capital gains are taxed at special rates as shown below:
| Capital Gains | Tax Rate |
| Short term capital gains from assets (Other than shares & mutual funds) | At Income Tax Slab rates listed above |
| Long term capital gains from assets (Other than shares & mutual funds) | 20% (+4% Health and Education Cess) |
| Short term capital gains on shares and equity mutual funds | 15% (+4% Health and Education Cess) |
| Long term capital gains on shares and equity mutual funds | 10% (+4% Health and Education Cess) |
| Short term capital gains on debt mutual funds | At Income Tax Slab rates listed above |
| Long term capital gains on debt mutual funds | At 20% (+4% Health and Education Cess) with indexation |
The above rates are based on FM speech. We will update after the budget documents are out and we look at the fine print.
I have to sell one father’s house and fund will come to my mother’s name, 78 yrs old. I will purchase a new flat in city in name of my mother. Can I give joint name of myself or my wife with my mother while buying new flat ? Kindly guide me on this issue.
Thanx for detals…Kindly update with latest
Need updates as per latest Financial Bill pass by Parliament. also provides details of DTC
I own 2 houses in same city. Both are joint properties, in favour of me and my wife. Both of us are income tax payers. Myself a government official, while my wife is self employed. How will we get rebate in income tax on home loan principal and interest?
In case there is no share of property stated in any agreement, you can take it as 50% each and calculate taxes accordingly. You can read claim Tax Benefit on both HRA & Home Loan? for more info.
Nice post!
What is the limit for bank to deduct TDS on Interest income for FY 2019 20 senior citizens is interest income is 5.75 lakh will bank deduct TDS from Rs 1against from 15 H
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Income tax slabs unchanged! Full tax rebate for taxpayers with taxable income up to Rs 5 lakh through Section 87A.
Just read a news article in NDTV ( https://www.ndtv.com/business/budget-2019-calculate-income-tax-for-2020-21-with-examples-income-tax-changes-announced-on-feb-1-1987667) as per this article if an individual have taxable income of more that 5Lacs after all the deductions like , Standard, 80C, Home loan Interest, HRA. Then he is not entitled for the any benefit. How far is it true.
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