Tax Slab FY 2019-20 (Expected Income Tax Slab AY 2020-21)

Income Tax Slab for FY 2017-18 and also Tax Slab AY 2018-19 (Including Projected Income Tax Slab 2020-21) have been provided based on the Finance Budget introduced by the Hon’ble Finance Minister. Tax Slab for Senior Citizens is different to that of Tax Slab applicable for younger people. While the Income Tax Slab have been kept unchanged for AY 2018-19, some interesting changes have been made which will have an impact on the tax liability of Individuals. Below, we have provided the estimated Tax Slabs that will be introduced in the Budget 2018.

Income Tax Slab 2020-21 :

Union Budget 2019 was announced today and below are the major highlights compiled by finapp.

1. Within 2 years, Tax assessment will be done electronically

2. IT returns processing in just 24 hours
3. Minimum 14% revenue of GST to states by Central Govt.
4. Custom duty has abolished from 36 Capital Goods
5. Recommendations to GST council for reducing GST rates for home buyers
6. Tax Rebate now increased, No Income Tax for Individuals with Income upto Rs.5 Lakhs.
7. Standard deduction has increase from 40,000 to 50,000
8. Exempt on tax on second self-occupied house
9. Ceiling Limi t of TDS u/s 194A has increased from 10,000 to 40,000
10. Ceiling Limit of TDS u/s 194I has increased from 1,80,000 to 2,40,000
11. Capital tax Benefit u/s 54 has increased from investment in one residential house to two residential houses.
12. Benefit u/s 80IB has increased to one more year i.e. 2020
13. Benefit has given to unsold inventory has increased to one year to two years.
Tax Slab for Individuals Tax Rate
Upto 2,50,000 Nil
2,50,000-5,00,000 10%
5,00,000-10,00,000 20%
Over 10,00,000 30%

 

Senior Citizen Income Tax Slab FY 2019-20 (AY 2020-21)

0 – 6,00,000 Nil
6,00,000-10,00,000 10%
10,00,000-15,00,000 20%
Over 15,00,000 30%

 

Tax Slab 2020-21 Download
Section 80C Deductions  Rs.2,00,000
Corporate Tax Rate 25%

 

Income Tax Slab AY 2018-19

Tax Slab for Individuals Tax Rate
Upto 2,00,000 Nil
2,50,000-5,00,000 10%
5,00,000-10,00,000 20%
Over 10,00,000 30%

Senior Citizen Income Tax Slab AY 2018-19

0 – 3,00,000 Nil
3,00,000-5,00,000 10%
5,00,000-10,00,000 20%
Over 10,00,000 30%

Income Tax Slab for AY 2018-19

Total Tax Slab Three
Tax Slab Rebate Rs.2,500
Tax Slab Surcharge Over 1 Crore

Likely Tax Slabs from Next Year (FY 2018-19 & AY 2019-20)

Nil Tax Rate Upto Rs.4,00,000
10% Tax Slab 4 Lakhs to 8 Lakhs
20% Tax Slab 8 Lakhs to 12 Lakhs
30% Tax Slab Above 12 Lakhs

Few Important Changes from Budget 2017

The existing rebate of INR 5,000 available for individuals with an income between INR 2,50,000 to INR 5,00,000 is reduced to INR 2,500. Also, the rebate will now be available only for individuals with an Income less than INR 350,000.

From FY 2018-19, Those with annual income between INR 50 lakh to INR 1 crore will be levied a surcharge of 10 per cent.

From FY 2018-19, The maximum amount of loss from house property which can be adjusted from any other head of income is restricted to INR 2 Lakhs.

Individuals Below 60 Yrs – Income Tax Slab 2018-19 (AY 2018-19)

Income Tax Slab Income Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 – Rs. 500,000 5% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Senior Citizens (60-80 yrs) : Income Tax Slab 2018-19 (AY 2018-19)

Income Tax Slab Income Tax Rate
Income upto Rs. 3,00,000 Nil
Income between Rs. 3,00,001 – Rs. 500,000 5% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Super Senior Citizens ( above 80 yrs) : Income Tax Slab 2018-19 (AY 2018-19)

Income Tax Slab Income Tax Rate
Income upto Rs. 5,00,000 Nil
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Income Tax Calculator India

Below we have provided the extremely efficient Income Tax Calculator. This Calculator takes all the necessary data, like Payments made to Life Insurance Premium, Children Education Fee, Interest on Home Loan, Rent paid etc.

Details of Income Tax Slab for 2018-19

You must note that there are not many changes in the income tax slabs that of current year and that of the last year.

With respect to the senior citizens, the Tax Slab is still the same with basic exemption limit upto Rs.500,000.

Income Tax Slab India

However, with respect to Other Assessees, an additional rebate has been provided which would indirectly mean that tax slab is increased by Rs.50,000.

HUF Tax Slab

The term ‘Hindu undivided family’ has not been defined in the Income-tax Act. However, in general parlance it means an undivided family of Hindus. Creation of a HUF is a God-gifted phenomenon.

As soon as a married Hindu gets a child, a new HUF Tax Slabcomes into existence. It is not at all necessary that every HUF must have joint property or family income. [R. Subramania Iyer v. CIT (1955) 28, ITR, 352]. However, to become an assessee under the Income-tax Act, there must be ‘income-yielding’ joint property of the family.

Firm Tax Slab

When a firm is assessed as such for any assessment year, it shall be assessed in the same capacity for every subsequent year if there is no change in the constitution of the firm or in the shares of partners as evidenced by the partnership deed on the basis of which assessment as a firm was first sought.

AMT – Income Tax Slab 2018-19 (AY 2018-19)

Where the regular income tax payable for a previous year by a person other than a company is less than the alternate minimum tax payable for such previous year then the adjusted total income shall deemed to be the total income of that person for such previous year and it shall be liable to pay income tax on such adjusted total income @ 18.5% plus education & SHEC @ 3%.

Upto Assessment Year 2012-13, Alternate Minimum Tax (AMT) was levied on limited liability partnerships (LLPs). However, no such tax was levied on the other form of business organisations such as partnership firms, sole proprietorship, association of persons, etc.

In order to widen the tax base vis-à-vis profit linked deductions, the provisions regarding AMT has been broaden to cover all persons other than a company, who has claimed deduction under any section (other than section 80P) included in Chapter VI-A under the heading “C – Deductions in respect of certain incomes” or under section 10AA, shall be liable to pay AMT.

AOP Tax Slab

Section 67A seeks to provide for the method of computing a member’s share in the income of an association of persons or a body of individuals, wherein the shares of the members are determinate, in the same manner as provided for in Sub-sections (1) to (3) of Section 67 for computing a partner’s share in a firm.

Co-operative Society Tax Slab

The income of a co-operative society is computed in the same manner as provided for other assessees. Further, the subsidy given by the government to a co-operative society for meeting managerial expenses and admission fee collected by the society is treated as revenue receipt and liable to tax. [Ludhiana Central Co-operative Consumers’ Stores Ltd. v. C.I.T. (1980) 122, I.T.R. 942].

Tax Slab FY 2015-16 For Men Below 60 Years Of Age

Income Tax Slab Income Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 – Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Tax Slab FY 2015-16 For Women Below 60 Years Of Age

Income Tax Slab Income Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 – Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Tax Slab FY 2015-16 For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax Slab Income Tax Rate
Income upto Rs. 3,00,000 Nil
Income between Rs. 3,00,001 – Rs. 500,000 10% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Tax Slab FY 2015-16 For Senior Citizens (Age 80 years or more)

Income Tax Slab Income Tax Rate
Income upto Rs. 5,00,000 Nil
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Conclusion : Income Tax Slab 2018-19 (AY 2018-19)

Until 2012, There used to be significant changes in the income tax slab rates with each Union budget.

However, for the last 3-4 years, the Income tax slabs haven’t changed much, except for the senior citizens and super senior citizens.

The same trend is likely to be followed for the upcoming tax slabs too.