The Interim Finance Minister Shri Piyush Goyal Presented the interim budget on February 01, 2019 in Lok Sabha on which he told about the various amendments in Income Tax Act 1961 through Finance Bill 2019.
The Main relief to individual taxpayers is Rebate u/s 87A of Income Tax Act which increased the limit of rebate from Rs. 2,500 to Rs. 12,500 w.e.f. F.Y. 2019-20 for individual on total income upto Rs. 5 Lakh Per Annum.
A) For your information below are the tax slabs on Income tax for Financial Year 2019-20 (Assessment Year 2020-21):
I. In the case of every individual other than the individual referred to in points (II) and (III) of this Paragraph:
| Particulars | Tax Calculation |
| where the total income does not exceed Rs. 2,50,000 | Nil |
| where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 | 5 per cent. of the amount by which the total income exceeds Rs. 2,50,000 |
| where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | Rs. 12,500 plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000; |
| where the total income exceeds Rs. 10,00,000 | Rs.1,12,500 plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000 |
II. In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year:
| Particulars | Tax Calculation |
| where the total income does not exceed Rs. 3,00,000 | Nil |
| where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 | 5 per cent. of the amount by which the total income exceeds Rs. 3,00,000 |
| where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | Rs. 10,000 plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000; |
| where the total income exceeds Rs. 10,00,000 | Rs.1,10,000 plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000 |
III. In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year:
| Particulars | Tax Calculation |
| where the total income does not exceed Rs. 5,00,000 | Nil |
| where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | 20 per cent of the amount by which the total income exceeds Rs. 5,00,000 |
| where the total income exceeds Rs. 10,00,000 | Rs. 1,00,000 plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000 |
B) Surcharge on tax: The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge as mentioned below:
| Particulars | Surcharge Applicable |
| having a total income exceeding fifty lakh rupees but not exceeding one crore rupees | At the rate of 10% of such income tax |
| having a total income exceeding one crore rupees | At the rate of 15% of such income tax |
Provided that in the case of persons mentioned above having total income exceeding:
| Particulars | Marginal Relief Applicable |
| fifty lakh rupees but not exceeding one crore rupees | total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees. |
| one crore rupees | the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees. |
C) The amount of income-tax as mentioned in points (I) to (III) and as increased by the applicable surcharge shall be further increased by an additional surcharge name “Health and Education Cess on income-tax” calculated @ 4% i.e. calculated on Basic tax+Surcharge.
D) Calculation of Tax after Rebate u/s 87A
Below are the example for tax calculated and rebate u/s 87A (Impact of finance Bill 2019)
Name: XYZ
Age: 38 years
| Particulars | F.Y. 2018-19 | F.Y. 2019-20 |
| Income from Other Heads | 6,50,000 | 6,50,000 |
| Income from saving banks | 10,000 | 10,000 |
| Gross Total Income | 6,60,000 | 6,60,000 |
| Less: Deduction u/s 80C | 1,50,000 | 1,50,000 |
| (LIC Premium, PPF, ELSS etc.) | ||
| Less: Deduction u/s 80TTA for bank interest | 10,000 | 10,000 |
| Total Taxable Income | 5,00,000 | 5,00,000 |
| Income tax Payable as per slab rates | 12,500 | 12,500 |
| Less: Rebate u/s 87A | – | (12,500) |
| Basic Tax: | 12,500 | – |
| Add: Health Education Cess @4% | 500 | |
| Tax Payable | 13,000 | – |
Read more at income tax slab for fy 2019 20
Author Bio
Sir, During my retirement in sep 2018, I claim for rebate of leave encashment of Rs 739185 under sec 10ee and same was processed by Income-tax deptt and refunded the excess amount. Now notice issued by income tax that it was wrongly processed, limit for leave encashment is Rs 3 lac only.
Please guide me solution.
I want to get your notifications .Very comprehensive and useful
Sir What about standard deduction in above said example of Rs 660000 income for 2019-20
Can you send me excel format for income Tax calculator for salaried persons for FY 2019-20
We have been using your excel format for calculating the IT computation under salary for more than 3 years. Hence pls send us the excel format the FY 2019-20
We have been using your excel format for calculating the IT computation under salary for more than 6 or 7 years. Hence pls send us the excel format the FY 2019-20
Can you send me excel format for income Tax calculator for salaried persons for FY 2019-20
medical treatment for senior citizen how much amount is deducting in co,putation of income for A Y 2019-20
DEAR SIR,
IF TAXABLE INCOME IS 600000/- So Rebate u/s 87A is applicable? Please guide me.
Is UDIN to be generated each and every time when certificates are issued?
Sir,
i wanted know whether UDIN is mandatory for those reports which are verified but not certified by CA.
And also whether certified true copies also requires UDIN