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Income Tax Rates applicable for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI) in India is as under:
Assessment Year 2020-21, Relevant to Financial Year 2019-20
For Individuals below 60 years age (including Woman Assessees):
|
Income
|
Tax Rate
|
|
Upto 250,000
|
Nil
|
|
250,000 to 500,000
|
5% of the amount exceeding 250,000
|
|
500,000 to 1,000,000
|
Rs.12,500 + 20% of the amount exceeding 500,000
|
|
1,000,000 & above
|
Rs.112,500 + 30% of the amount exceeding 1,000,000
|
For Individuals aged 60 years and above but below 80 years (Senior Citizen):
|
Income
|
Tax Rate
|
|
Upto 300,000
|
Nil
|
|
300,000 to 500,000
|
5% of the amount exceeding 300,000
|
|
500,000 to 1,000,000
|
Rs.10,000 + 20% of the amount exceeding 500,000
|
|
1,000,000 & above
|
Rs.110,000 + 30% of the amount exceeding 1,000,000
|
For Individuals aged 80 years and above (Very Senior Citizen):
|
Income
|
Tax Rate
|
|
Upto 500,000
|
Nil
|
|
500,000 to 1,000,000
|
20% of the amount exceeding 500,000
|
|
1,000,000 & above
|
Rs.100,000 + 30% of the amount exceeding 1,000,000
|
Surcharge on Income Tax:
- 10% of Income Tax, where total income exceeds Rs.50 lakhs upto Rs.1 crore.
- 15% of the Income Tax, where total taxable income exceeds Rs.1 crore.
- Surcharge amount of 10% or 15% as applicable, shall not exceed the amount of income that exceeds Rs. 50 lakhs or Rs. 1 crore, as applicable.
Health and Education Cess: 4% of Income Tax plus Surcharge
Tax Credit: Section 87A provides for rebate from tax liability. Deduction of upto Rs. 12,500 is allowed from Income Tax payable for a person whose income doesn’t exceed Rs. 500,000. If the total tax payable is less than Rs. 12,500; deduction under Section 87A is restricted to total Income Tax payable.
Budget 2019: Change in Personal Income Tax Rates
No change in Income Tax slabs and Income Tax rates. However rebate under section 87A has been enhanced from Rs. 2,500 to Rs. 12,500 for person having income upto Rs. 500,000
Abolition of DDT is detrimental to equity holders. Corporates may accumulate surplus/secret reserves. Equity holders may not get high rates of dividends to tide over tax burden. Small investors who are exempted from payment of tax may get a bit benefits.