With the beginning of the new Financial Year 2019-2020, let us have a look into the income tax as applicable to the individuals. Present article demystifies the individual / personal taxes as applicable for the Financial Year 2019-2020.

Summarizing the income tax slabs for the individual –

Income tax slab for the Financial Year 2019-2020 (i.e. Assessment Year 2020-2021) is summarized hereunder –

  • Tax slab for Resident Individual (below the age of 60 years as on the last day of the relevant previous year) –

Income tax slabIncome Tax Rate
Up to INR 2,50,000NIL
INR 2,50,000 to INR 5,00,0005% of the total income exceeding INR 2,50,000.
INR 5,00,000 to INR 10,00,000INR 12,500 + 20% of the total income exceeding INR 5,00,000. 
Above INR 10,00,000 INR 1,12,500 + 30% of the total income exceeding INR 10,00,000. 

  • Tax slab for the individual – Resident Senior Citizens (above the age of 60 years but less than 80 years at any time during the previous year) –

Income tax slabIncome Tax Rate
Up to INR 3,00,000NIL
INR 3,00,000 to INR 5,00,000 5% of the total income exceeding INR 3,00,000.
INR 5,00,000 to INR 10,0 0,000INR 10,000 + 20% of the total income exceeding INR 5,00,000.
Above INR 10,00,000INR 1,10,000 + 30% of the total income exceeding INR 10,00,000.

  • Tax slab for individual– Resident Super Senior Citizens (above the age of80 years) –

Income tax slabIncome Tax Rate
Up to INR 5,00,000NIL
INR 5,00,000 to INR 10,0 0,00020% of the total income exceeding INR 5,00,000
Above INR 10,00,000INR 1,00,000 + 30% of the total income exceeding INR 10,00,000

  • Tax slab for Non-Resident Individual (irrespective of their age) –

Income tax slabIncome Tax Rate
Up to INR 2,50,000NIL
INR 2,50,000 to INR 5,00, 0005% of the total income exceeding INR 2,50,000.
INR 5,00,000 to INR 10,00,000INR 12,500 + 20% of the total income exceeding INR 5,00,000. 
Above INR 10,00,000 INR 1,12,500 + 30% of the total income exceeding INR 10,00,000. 

Surcharge –

Surcharge is payable over and above the income tax calculated as per the income tax rate provided above. 

ParticularsSurcharge Rates
Total income exceeds INR 50 Lakhs but not exceeding INR 1 Cr ore 10% of the income tax
Total income exceeds INR 1 Crore15% of the income tax

Health and Education Cess

Health and education cess is to be calculated on the sum total of income tax and surcharge. Health and education cess is payable @4% on income tax plus surcharge. 

Rebate (under section 87A) 

Tax rebate under section 87A of the Income Tax Act, 1961 has been increased / revised. For the Financial Year 2019-2020, maximum tax rebate available under section 87A is INR 12,500. 

Tax rebate is available only to the resident individual earning net taxable income up to INR 5 Lakhs. Tax rebate is to be applied to the total tax before adding ‘Surcharge’ and ‘Health and Education Cess’. 

List of deductions as available to the individuals –

Basic list of deduction as available to the individuals for the Financial Year 2019-2020 is listed here-under –

Relevant section ParticularsAmount of deduction
80CInvestment in LIC, PPF, EPF, NSC, 5 year Bank / post office tax saving deposit, ELSS Mutual Fund, SCSS etc.  1,50,000
80CCD (1b)National Pension Scheme (NPS) and Atal Pension Yojana (APY)50,000
80DMediclaim 25,000 / 50,000
80DDBTreatment cost for specified medical disease for self or dependent relatives40,000 / 1,00,000
80EEducational loan for higher studies Interest paid towards the loan
80GDonations made to NGO’s 
80GGDeduction in respect of house rent paidLeast of the following – Rent paid – 10% of adjusted total income; ORINR 5,000 per month; OR25% of the adjusted total income
80DDExpenses and medical treatment of disabled dependent person75,000 / 1,25,000 (severe disability)
80UExpenses and medical treatment of resident individual i.e. self75,000 / 1,25,000 (severe disability)
80TTAInterest on deposits in savings account with a bank, co-operative society or post office10,000
80TTBInterest on deposits in savings account with a bank, co-operative society or post office in case of senior citizens 50,000
80EEInterest paid on home loan available to first time home buyers provided the loan is up to INR 35 Lakhs and house value does not exceed INR 50 Lakhs50,000
24(b)Interest paid on loan taken for purchase / construction of self-occupied house property2,00,000

Specimen of income tax calculation for the individual –

 Income under the head SalaryXXX
Add Income under the head House PropertyXXX
AddIncome under the head Profit or gain from business or ProfessionXXX
AddIncome under the head Capital GainsXXX
AddIncome under the head Other SourcesXXX
 Gross total incomeXXX
LessAvailable deductionsXXX
 Net taxable incomeXXX
   
 Tax payable (apply an appropriate tax rate on net taxable income)XXX
LessTax rebate u/s 87A (available only if net taxable income is up to INR 5 Lakhs)XXX
 Total tax liabilityXXX
AddSurcharge XXX
AddHealth and Education CessXXX
 Net tax payable XXX

About The Author: CA Sandeep Kanoi is a Commerce Graduate and has done his CA in 2002. He has more than 18 years of experience in the field of Taxation, Accounting, Finance, Audit and Corporate Law. In December 2008 he formed Popular Tax Portal Taxguru https://taxguru.in and is Founder of the website and is currently associated with it as CEO of the same. He has been an active blogger for past many years and has been sharing his knowledge with the young professionals through various platforms and forums. He has been instrumental in the growth of taxguru.in and has himself contributed/authored more than 10000 articles/Judiciary on the website.