What is the income tax slab 2019-20?
It is the duty of every individual earning in India to pay tax on the income to the government. The income tax paid by individuals is a major source of government revenues which is utilised to provide services and infrastructure to the citizens.
Most people are aware of tax deductions under Section 80C or exemptions like house rent allowance and leave travel allowance. If you are using any of these deductions and exemptions, you are paying your tax as per the income tax slab 2019. Let us take a detailed look at the income tax slab 2019 and the various deductions and exemptions available under the existing system.
The taxable income in India depends on the age of the taxpayer. The tax department has divided assesses into three categories—individuals below 60 years of age, between 60 and 80 and above 80 years of age. People between 60 and 80 years of age are called senior citizens, while those above 80 are known as super senior citizens. Income tax in the country has three primary components, the tax rate, cess and surcharge. Besides the tax rate applicable on various income slabs, you also have to pay cess and surcharge, if applicable.
The income tax slab 2019 for individuals below 60
For senior citizens
An annual income of up to Rs 3 lakh is exempted from taxes as compared to Rs 2.5 lakh for people below the age of 60.
Income between Rs 3 lakh and Rs 5 lakh is taxed at 5%, but you are eligible to receive tax rebate under Section 87A of the Income Tax Act, 1961. It makes an income up to Rs 5 lakh essentially tax-free.
Income between Rs 5 lakh and Rs 10 lakh is taxed at 20%.
Income over Rs 10 lakh is taxed at 30%.
For super senior citizens
The government levies an additional tax through a surcharge on high earners. Let us take a look at the surcharge for different income slabs.
The tax burden increases considerably due to various cess and surcharges that are levied along with the tax. However, you can also avail tax deductions on certain investments and reduce your tax liability. Investing in Canara HSBC Oriental Bank of Commerce Life Insurance iSelect Star Term Plan can help you avail a tax deduction of Up to Rs 1.5 lakh in a year under Section 80C.