Income Tax Slab for fy 2019 20

Income Tax Slab for fy 2019 20 – Income Tax Slab, Rate, ITR, and More

About Income Tax slab for fy 2019 20

Let’s discuss about income tax slab for fy 2019 20, Basically, income tax, an important part of almost every country in the world, the government of every country wants its country to be better, for which the government spends a large amount of money every year and some part of this amount is income tax. ) Is charged as
Before understanding income tax, it is important to understand the true meaning of tax and different types of taxes:

[Update For AY 2020-21] – As per Budget 2019, the 87A rebate limit has been increased from 2,500 to 12,500. This means that if you are a resident individual and your total income (after deducting all deductions) is 5 lakhs or less, then you get 100% tax rebate.

What is Tax? Why Do You Pay Tax? 

Tax means tax, octroi or duty. The government of any country charges a fee from its citizens to develop and improve their country, it is called Tax. Talking about India, Tax can be levied in the country by the Central Government and the State Government, along with it Local Authorities also have the right to levy small taxes.

Income Tax slab for fy 2019 20

Types of Taxes

1. Direct Tax
2. Indirect Tax

Direct tax 

Direct taxes mean taxes levied directly. The taxpayer has to pay this tax on the income generated by the taxpayer himself. He cannot transfer it to anyone else, hence it is called Direct Tax. There are some examples of this. Like- Income-tax, Corporate tax, Wealth tax.

income tax

Indirect Tax 

Which are levied on goods and services? These are called indirect taxes because the taxpayer does not pay it directly. In this, there are different people who pay taxes and those who deposit it. In India, GST is levied mainly on the indirect supply of all goods and services.

For example, when we buy an item from a shop, the tax (GST) is attached to its value. With that tax, we pay the full price to the shopkeeper and the shopkeeper submits part of the tax to the government.

income tax slab for fy 2019 20

income tax case laws

income tax case laws

Income includes salary, rental income, pension, the profit arising from business or profession, profit (Capital), interest income, dividend, royalty, etc. arising from the sale of any specified asset.
Sources of Income
5 Head of income
1. Salary Income
2. House Property Income
3. Profit and Gain from Business or Profession
4. Capital Gain
5. Income from other sources

Types of Taxpayers in Income Tax

• Individuals,
• Hindu Undivided Family (HUF),
• Association of Persons (AOP) and
• Body of Individuals (BOI)
• Firms
• Companies
• Artificial Juridical Person

Income Tax Slab & Exemption Limit

Each taxpayer is taxed at different rates as per Indian Income Tax law. In addition, each tax slab has a different tax rate. The tax rate and exemption limit for an individual taxpayer is mainly as follows –

Income Tax Slab Rate For FY 2018-19 AY 2019-2020

# 1 Age – Below 60 Years
For taxpayers below 60 years of age Annual Income Tax Rate

Nil for less than 2.5 lakhs (no tax)

2.5 to 5 lakhs 5%

5 to 10 lakhs 20%

30% over 10 lakhs

# 2 Age – Between 60 to 80 Year For taxpayers aged 60 to 80 years

Income tax rate based on annual income

Nil for less than 3 lakhs (no tax)

3 to 5 lakhs 5%

5 to 10 lakhs 20%

30% over 10 lakhs

For taxpayers over 80 years of age Income tax rate based on annual income

Nil up to 5 lakhs

5 to 10 lakhs 20%

30% if it exceeds 10 lakhs

Surcharge
Also called Tax on Tax. When the taxpayer’s income exceeds a set limit, another tax is levied as a fixed percentage which is levied on the tax and not on the income called Surcharge.

Income between 50 lakhs to 1 crore rupees – 10% of Income Tax and
Income exceeds 1 crore – 15% of Income Tax

Cess

When the government is short of money and imposes a tax on tax for a particular task, it is called cess. It is imposed at the end after deduction and surcharge of all types of deduction. Health & Education Cess has mainly applied in Income Tax and the rate is 4%.

Income Tax Calculation

income tax calculation

Taxable Income –
What is Taxable Income? Income on which tax is levied. When all the deductions and exemptions are deducted from the total income, the remaining income is called taxable income and is taxed.

Taxable Income Formula = Gross Income – (Deduction + Exemption)
Taxable Income = Gross Income – (Deduction + Discount)

# 1. Calculate Gross Total Income of the Financial Year, First of all, you have a financial year which is from April 1 to March 31. During that, income from all sources (given above) is to be added.

# 2 Non-Taxable Income In the Income Tax Act, some income is kept outside the income tax net. like –

• Allowance received during foreign service
• Insurance Claim
• Gratuities
• Dividend received from shares
• Agricultural activities)
• Receipts from Hindu Undivided Family (HUF)
• Share received from partnership firm  [Note –Non-taxable income will be calculated according to the rules of the Income Tax Act]

# 3 Deduction
Deduction is as follows –
• Section 80C, 80CCC, 80CCD, 80D, 80DDB, 80E, 80EE, 80RRB, 80TTA, 80U

# 4 Rebate & Surcharge
After this, if Surcharge and Rebate are applied then apply them.

# 5 Calculate Tax on Net Total Income
You have to withdraw tax on your Net Taxable Income (Gross Income – ((Deduction + Exemption)) according to your age and taxpayer category. The slab rate is given above for individuals.

[Note – These two will never apply together. Because if your income is more than a fixed limit, then your tax will be charged by a certain percentage and if your income is less than a fixed limit then you will get a rebate for that]
Rabate 87A –

AY 2020-21 Update: As per Budget 2019, the 87A rebate limit has been increased to 12,500. To take advantage of 87a rebate you –

• RESIDENT must be INDIVIDUAL.
• After deducting all deductions from the total income, your total income should be 5 lakhs or less.
• Rebate limit has been increased from 2500 to 12,500. This means that if you have less than 12,500 tax, you will get exemption under 87A. [This Education Cess is given before adding 4%]
• Earlier this rebate was up to 3.5 lakhs, with a discount of up to 2500.

# 6 Finally you have to apply Education Cess (4%).

# 7 Apart from this, you can easily calculate your Basic Income Tax by the following the link – Tax Calculator   Income Tax Payment – The government receives tax from its citizens in many ways, but there are three main ways to collect Income Tax

# 1 Advance Tax
# 2 Tax Deducted at Source (TDS)
# 3 Self-Assessment Tax   Advance Tax – Advance Tax The government wants that in the whole year you are going to earn the income, you pay the tax on it in certain parts during the year itself, this is called

Advance Tax

Normally, a person’s income is taxed in the Assessment Year on several Financial Year or Previous Year Income. But the government says here that you have already guessed how much income you are going to earn next year and pay us the tax that is made accordingly. Dates to pay advance tax Some are as follows –

Date of payment (advance date payment) (%)

15% of advance tax on or  June 15 before
45% of advance tax on or 15 September before
75% of advance tax on or 15 December before
100% of advance tax on or March 15 before

Self-Assessment Tax –
At the end of the year, when you evaluate how much advance tax you have paid during the financial year, you know that you have paid most or all of the income tax. If you pay the outstanding tax after the end of the financial year, then it is called self-assessment.

TDS – 

tds

The main reason for bringing TDS is that tax can be received from all sources as soon as possible so that the government remains financially strong. Under this, if one person makes any kind of payment to another person and the payment falls in the prescribed rules of TDS If that person has to pay a fixed percentage, TDS will be deducted before payment and the deducted TDS will have to be submitted to the government.

Income Tax Return 2019 – 
You must know about the income tax return 2019. ITR is a type of statement or statement where the taxpayer during a financial year gives a full explanation of the deductions, exemptions and taxable income applicable under the Income Tax Act on all the income he earns. Different taxpayers file their tax returns according to their income sources.

ITR Forms (Income Tax Return 2019) – 
Who has to file which form Different types of forms have been prescribed for all types of taxpayers and according to the same, you have to do your Return File:

income tax return 2019

ITR – Applicable for Individuals/HUFs
Income (Less than 50 Lacs) from:
• Salary
• One House
• Other Sources

ITR – Applicable for Individuals/HUFs
Income from :
• Salary
• House Property
• Other Sources
• Capital Gains
• As a Partner in Firm
• Foreign Income
• Agriculture Income > 5000

ITR –  Presumptive Basic Income Under :
• Section 44AD
• Section 44ADA
• Section 44AE

ITR – Application for
• Firms
• LLPs
• AOP
• BOI

ITR –  Applicable for Companies not Claiming Exemption Under Section 11
ITR – 7 Applicable for Persons/Companies Under
• Section 139(4A)
• Section 139(4B)
• Section 139(4C)
• Section 139(4D)

ITR – Applicable for Individuals/HUFs
Income from :
• Salary
• House Property
• Other Sources
• Capital Gains
• As a Partner in Firm
• Foreign Income
• Agriculture Income > 5000
• Business Profession

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Author: Dewakar Pandey

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