COMPARISON OF TAX STRUCTURE FOR INDIVIDUAL FOR F.Y. 2018-19 & F.Y.2019-20
The Interim Budget was announced on 1st Feb, 2019 in Lok Sabha. The comparison of tax structure for individual is as follows:
No change in Tax Slab
I. In the case of every individual other than individual referred in point (II) and (III):
| Particulars | Tax Calculation (F.Y.2018-19) | Tax Calculation (F.Y.2019-20)
|
| Where the total income does not exceed Rs.2,50,000/- | Nil | Nil |
| Where the total income exceeds Rs.2,50,000/- but does not exceed Rs.5,00,000/- | 5% of the amount by which the total income exceeds Rs.2,50,000/- | 5% 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 % of the amount by which the total income exceeds Rs.5,00,000/- | Rs.12,500 plus 20 % 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% of the amount by which the total income exceeds Rs.10,00,000/- | Rs.1,12,500 plus 30% 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 the age of sixty years or more but less than eighty years at any time during the previous years:
| Particulars | Tax Calculation (F.Y.2018-19) | Tax Calculation (F.Y.2019-20)
|
| Where the total income does not exceed Rs.3,00,000/- | Nil | Nil |
| Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/- | 5% of the amount by which the total income exceeds Rs.3,00,000/- | 5% 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 % of the amount by which the total income exceeds Rs.5,00,000/- | Rs.10,000 plus 20 % 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% of the amount by which the total income exceeds Rs.10,00,000/- | Rs.1,10,000 plus 30% 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 the age of eighty years or more:
| Particulars | Tax Calculation (F.Y.2018-19) | Tax Calculation (F.Y.2019-20)
|
| Where the total income does not exceed Rs.5,00,000/- | Nil | Nil |
| Where the total income exceeds Rs.5,00,000/- but does not exceed Rs.10,00,000/- | 20 % of the amount by which the total income exceeds Rs.5,00,000/- | 20 % 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% of the amount by which the total income exceeds Rs.10,00,000/- | Rs.1,00,000 plus 30% of the amount by which the total income exceeds Rs.10,00,000/- |
Additional Health and Education Cess will be charged @4%.
Rebate u/s 87A (Amendment)
| Particulars | F.Y.2018-19 | F.Y.2019-20 |
| Total Income | Rs.3,50,000/- | Rs.5,00,000/- |
| Tax Relief | Rs.2,500/- | Rs.12,500/- |
Amendment Benefit for different category of persons
1. In case of individual below age of 60 years:
| Particulars | F.Y.2018-19
(Rs.) |
F.Y.2019-20 (Rs.)
|
| Income from Salary | 9,25,000/- | 9,25,000/- |
| Income from House property | (2,00,000)/- | (2,00,000)/- |
| Income from Other Sources (interest on savings) | 10,000/- | 10,000/- |
| Total Income | 7,35,000/- | 7,35,000/- |
| Less: Deductions | ||
| Sec. 80C | 1,50,000/- | 1,50,000/- |
| Sec.80CCD (1B) (NPS) | 50,000/- | 50,000/- |
| Sec.80D | 25,000/- | 25,000/- |
| Sec.80TTA | 10,000/- | 10,000/- |
| Taxable Income | 5,00,000/- | 5,00,000/- |
| Income Tax Payable | 12,500/- | 12,500/- |
| Rebate u/s 87A | —– | (12,500)/- |
| Basic Tax | 12,500/- | —— |
| Add: Health & Education Cess@4% | 500/- | —– |
| Total Tax Payable | 13,000/- | —– |
| Benefit | 13,000/- | |
2. In case of individual above 60 years but below 80 years age.
| Particulars | F.Y.2018-19
(Rs.) |
F.Y.2019-20 (Rs.)
|
| Income from Salary | 9,30,000/- | 9,30,000/- |
| Income from House property | (2,00,000)/- | (2,00,000)/- |
| Income from Other Sources (interest on savings & fixed deposits) | 50,000/- | 50,000/- |
| Total Income | 7,80,000/- | 7,80,000/- |
| Less: Deductions | ||
| Sec. 80C | 1,50,000/- | 1,50,000/- |
| Sec.80CCD (1B) (NPS) | 50,000/- | 50,000/- |
| Sec.80D | 30,000/- | 30,000/- |
| Sec.80TTB | 50,000/- | 50,000/- |
| Taxable Income | 5,00,000/- | 5,00,000/- |
| Income Tax Payable | 10,000/- | 10,000/- |
| Rebate u/s 87A | —– | (10,000)/- |
| Basic Tax | 10,000/- | —— |
| Add: Health & Education Cess@4% | 400/- | —– |
| Total Tax Payable | 10,400/- | —– |
| Benefit | 10,400/- | |
3. In case of individual above 80 years age:
| Particulars | F.Y.2018-19
(Rs.) |
F.Y.2019-20 (Rs.)
|
| Income from Salary | 8,90,000/- | 8,90,000/- |
| Income from House property | (2,00,000)/- | (2,00,000)/- |
| Income from Other Sources (interest on savings & fixed deposits) | 50,000/- | 50,000/- |
| Total Income | 7,40,000/- | 7,40,000/- |
| Less: Deductions | ||
| Sec. 80C | 1,50,000/- | 1,50,000/- |
| Sec.80D | 30,000/- | 30,000/- |
| Sec.80TTB | 50,000/- | 50,000/- |
| Taxable Income | 5,10,000/- | 5,10,000/- |
| Income Tax Payable | 2,000/- | 2,000/- |
| Rebate u/s 87A | —– | —– |
| Basic Tax | 2,000/- | 2,000/- |
| Add: Health & Education Cess@4% | 80/- | 80/- |
| Total Tax Payable | 2,080/- | 2,080/- |
| Benefit | —— | |
Disclaimer:
The above views and the opinion expressed and implied are based on the knowledge of the author and the individual is advised to take due care and judgement before taking any decision.
Author: CA Deepak Babani
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