The income tax slab is a table that shows the threshold limit beyond which a specific tax rate is applicable and various deductions are made as per the applicable rate. As per the union budget below are the various slabs for Individuals according to which income tax is assessed in various categories.
Income tax slabs for resident Individual below 60 years of age
Up to Rs 2.5 lakh Nil
Rs 2,50,001 to Rs 5,00,000 5% of (Total income minus Rs 2,50,000) + 4%
cess
Rs 5,00,001 to Rs 10,00,000 Rs 12,500 + 20% of (Total income minus Rs
5,00,000) + 4% cess
Rs 10,00,001 and above Rs 1,12,500 + 30% of (Total income minus Rs
10,00,000) + 4% cess
Up to Rs 3 lakh Nil
Rs 3,00,001 to Rs 5,00,000 5% of (Total income minus Rs 3,00,000) +
4% cess
Rs 5,00,001 to Rs 10,00,000 Rs 10,000 + 20% of (Total income minus
Rs 5,00,000) + 4% cess
Rs 10,00,001 and above Rs 1,10,000 + 30% of (Total income minus
Rs 10,00,000) + 4% cess
Taxable income slabs Income tax rates and cess
Up to Rs 5 lakh Nil
Rs 5,00,001 to Rs 10,00,000 20% of (Total income minus Rs
5,00,000) + 4% cess
Rs 10,00,001 and above Rs 1,00,000 + 30% of (Total income
minus Rs 10,00,000) + 4% cess
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Additional Components
- Surcharge: In case income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. For income, more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount exceeding ₹ 1 crore.
- Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
- The interim budget 2019 has provisioned to provide a full tax rebate to individuals having a net taxable income (income adjusted after eligible tax deductions) upto Rs 5lakhs. It means that the maximum tax rebate provided under section 87A has been increased from Rs. 2,500 to Rs. 12,500. Individuals having net taxable income upto Rs. 5lakhs can claim the tax rebate under 87A and thus effectively pay zero tax.
Eligibility Criteria for Claiming Tax Rebate Under Section 87A
In order to claim tax rebate under section 87A, you should be meeting the following conditions:
- You must be a Resident Individual. The rebate can only be claimed by the taxpaying individuals. It cannot be claimed by HUF, firms or companies.
- Your net taxable income for FY 2019-20 (income after deductions) should not be more than Rs. 5 lakh.
- The maximum rebate that can be availed under section 87A is Rs. 12,500. It means that if the total tax payable is less than or equal to RS. 12,500, full tax rebate can be claimed.
Income tax slabs for resident individual between 60 and 80 years of age (Senior Citizen)
| Taxable income slabs | Income tax rates and cess |
Rs 3,00,001 to Rs 5,00,000 5% of (Total income minus Rs 3,00,000) +
4% cess
Rs 5,00,001 to Rs 10,00,000 Rs 10,000 + 20% of (Total income minus
Rs 5,00,000) + 4% cess
Rs 10,00,001 and above Rs 1,10,000 + 30% of (Total income minus
Rs 10,00,000) + 4% cess
Income tax slabs for resident individual above 80 years of age (Super Senior Citizen)
Taxable income slabs Income tax rates and cess
Up to Rs 5 lakh Nil
Rs 5,00,001 to Rs 10,00,000 20% of (Total income minus Rs
5,00,000) + 4% cess
Rs 10,00,001 and above Rs 1,00,000 + 30% of (Total income
minus Rs 10,00,000) + 4% cess
Source and for other details :
