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Latest income tax slabs and rates

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The latest income tax slabs applicable for financial year 2019-20 (assessment year 2020-21) in india.

The basic tax exemption limit for an individual depends on their age . According to age taxpayers are divided into three categories:

1. Resident  Below the age of 60 years
2. Resident senior citizens ( 60 years to 80 years)
3. Resident super senior citizens above the age of 80 years

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%
Rs 5,00,001 to Rs 10,00,000.    20%
Rs 10,00,001 and above.          30%

+4% cess

Income tax slabs for resident individual between 60 and 80 years of age (Senior Citizen)

Up to Rs 3 lakh.                        Nil
Rs 3,00,001 to Rs 5,00,000.       5%
Rs 5,00,001 to Rs 10,00,000    20%
Rs 10,00,001 and above.         30%

+4% cess

Income tax slabs for resident individual above 80 years of age (Super Senior Citizen)

Up to Rs 5 lakh.                             Nil
Rs 5,00,001 to Rs 10,00,000.      20%
Rs 10,00,001 and above.             30%

+ 4% cess

As per the Budget 2019 announcement, no changes in the income tax slabs and rates have been proposed. A rebate of Rs 12,500 will be available for all taxpayers with taxable income up to Rs 5 lakh.

This rebate will be available under Section 87A of the Income Tax Act. Also, standard deduction for financial year 2019-20 would be Rs 50,000.

For the FY 2019-20, new surcharge rates have been introduced for the super rich.

Surcharges to be levied for FY 2019-20:
Taxable IncomeSurcharge (%)

above Rs 50 lakh but below Rs 1 crore.   10
above Rs 1 crore but below Rs 2 crore.    15
above Rs 2 crore but below 5 crore.          25
Income above Rs 5 crore.                           37

For non-resident individuals (NRI), the basic exemption limit is of Rs 2.5 lakh in a financial year irrespective of their age. Surcharge as mentioned in the table above will be levied on the taxable income.

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