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

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17 Comments

    1. CA Devesh says:

      Dear Abdul,

      If your total income is more than 6 lacs then Rebate under Section 87A is not applicable.

      However you can reduce you income by investment in 80C/ Donation etc. and can plan to save tax accordingly.
      In case of any clarification, you can further reach out to me at mishradevesh12@gmail.com

  1. jainaman332@gmail.com says:

    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

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