- Reduction in Company Tax Rate
Finance Minister announced the following amendments in Corporate Slab Rate. The new tax rates shall become applicable from FY 2019-20 hence to be considered while calculating Advance Tax liability by the companies. - The Tax Rates for Domestic Companies will be 22% (plus surcharge and cess). The companies shall not avail any incentive / investment linked exemption. Also, MAT will not be applicable on such companies.
- Tax Rate for Domestic Manufacturing Companies incorporated on or after 01.10.2019 will now be 15% (plus surcharge and cess). Also, MAT will not be applicable on such companies.
- Companies availing exemptions will be continued to be charged at 25% or 30% Tax Rate as applicable (plus surcharge and cess) till the time they avail exemptions.
- Also, MAT on such Companies will now be charged @ 15% instead of 18.5% rate earlier.
- Enhanced surcharge introduced in Budget 2019 on Individuals shall not apply on capital gain income arising on sale of equity shares / units of equity oriented mutual funds liable for STT.
- Income Tax Slab Changes in Budget 2019
No new income tax slab for 2019-20 has been suggested in budget 2019. Therefore the income tax slab remains unchanged. - Corporate Tax Rate
Increase in turnover limit for Indian companies for 25% tax rate from turnover of 250 crore to 400 crore
Income Tax Slabs & Rates for Current FY 2019-20 (AY 2020-21)
Contents :-
- Income Tax Slab for Resident Individual aged less than 60 Years
- Income Tax Slab for Resident Individual (Senior Citizen) aged 60 Years & Above but less than 80 years
- Income Tax Slab for Resident Individual aged 80 years and above (Super Senior Citizen Taxpayers)
- Income Tax Slab for Non-Resident Individuals (NRI)
- Income Tax Slab for Hindu Undivided Family (HUF), AOP, BOI, Artificial Juridical Person
- Income Tax Slab for Partnership Firm/ LLP/ Local Authority
- Income Tax Slab for Indian Companies
- Income Tax Slab for Foreign Companies
- Income Tax Slab for Cooperative Societies
- What are the changes in new Income tax slab rates for F.Y. 2019-20 (A.Y. 2020-21)?
- FAQs
Income Tax Slab for Individuals less than 60 years of age (For Male & Female both)
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 2,50,000 | Nil | Nil | Nil | Nil |
| From 2,50,001- 5,00,000 | 5% | Nil | 4% | For income upto Rs 5 lakhs Tax Rebate upto Rs 12,500 |
| From 5,00,001-10,00,000 | 12,500 + 20% | Nil | 4% | Nil |
| From 10,00,001-50,00,000 | 1,12,500/- + 30% | Nil | 4% | Nil |
| From 50,00,001-1,00,00,000 | 13,12,500 + 30% | 10% | 4% | Nil |
| Above 1,00,00,000 but upto 2,00,00,000 | 28,12,500 + 30% | 15% | 4% | Nil |
| Above 2,00,00,000 but upto 5,00,00,000 | 58,12,500 + 30% | 25% | 4% | Nil |
| Above 5,00,00,000 | 1,48,12,500 + 30% | 37% | 4% | Nil |
Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for F.Y. 2019-20 (Both Male and Female)
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 3,00,000 | Nil | Nil | Nil | Nil |
| From 3,00,001- 5,00,000 | 5% | Nil | 4% | For income upto Rs 5 lakhs Tax Rebate upto Rs 12,500 |
| From 5,00,001-10,00,000 | 10,000 + 20% | Nil | 4% | Nil |
| From 10,00,001-50,00,000 | 1,10,000/- + 30% | Nil | 4% | Nil |
| From 50,00,001-1,00,00,000 | 13,10,000 + 30% | 10% | 4% | Nil |
| Above 1,00,00,000 | 28,10,000 + 30% | 15% | 4% | Nil |
| Above 2,00,00,000 but upto 5,00,00,000 | 58,10,000 + 30% | 25% | 4% | Nil |
| Above 5,00,00,000 | 1,48,10,000 + 30% | 37% | 4% | Nil |
Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For F.Y. 2019-20 (Both Male and Female)
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 5,00,000 | Nil | Nil | Nil | Nil |
| From 5,00,001- 10,00,000 | 20% | Nil | 4% | Nil |
| From 10,00,001-50,00,000 | 1,00,000 + 30% | Nil | 4% | Nil |
| From 50,00,001-1,00,00,000 | 13,00,000 + 30% | 10% | 4% | Nil |
| Above 1,00,00,000 | 28,00,000 + 30% | 15% | 4% | Nil |
| Above 2,00,00,000 but upto 5,00,00,000 | 58,00,000 + 30% | 25% | 4% | Nil |
| Above 5,00,00,000 | 1,48,00,000 + 30% | 37% | 4% | Nil |
Income Tax Slab for Non Resident Individuals (For Male & Female both)
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 2,50,000 | Nil | Nil | Nil | Nil |
| From 2,50,001- 5,00,000 | 5% | Nil | 4% | Nil |
| From 5,00,001-10,00,000 | 12,500 + 20% | Nil | 4% | Nil |
| From 10,00,001-50,00,000 | 1,12,500/- + 30% | Nil | 4% | Nil |
| From 50,00,001-1,00,00,000 | 13,12,500 + 30% | 10% | 4% | Nil |
| Above 1,00,00,000 | 28,12,500 + 30% | 15% | 4% | Nil |
| Above 2,00,00,000 but upto 5,00,00,000 | 58,12,500 + 30% | 25% | 4% | Nil |
| Above 5,00,00,000 | 1,48,12,500 + 30% | 37% | 4% | Nil |
Income Tax Slab for Hindu Undivided Family ( HUF), AOP, BOI, Artificial Juridical Person
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 2,50,000 | Nil | Nil | Nil | Nil |
| From 2,50,001- 5,00,000 | 5% | Nil | 4% | Nil |
| From 5,00,001-10,00,000 | 12,500 + 20% | Nil | 4% | Nil |
| From 10,00,001-50,00,000 | 1,12,500/- + 30% | Nil | 4% | Nil |
| From 50,00,001-1,00,00,000 | 13,12,500 + 30% | 10% | 4% | Nil |
| Above 1,00,00,000 but upto 2,00,00,000 | 28,12,500 + 30% | 15% | 4% | Nil |
| Above 2,00,00,000 but upto 5,00,00,000 | 58,12,500 + 30% | 25% | 4% | Nil |
| Above 5,00,00,000 | 1,48,12,500 + 30% | 37% | 4% | Nil |
Income Tax Slab for Partnership Firm/ LLP/ Local Authority
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 1 crore | 30% | Nil | 4%l | Nil |
| Above 1 crore | 30,00,000+30% | 12% | 4% | Nil |
Income Tax Slab for Indian Company
Companies with Gross receipts more than Rs. 400 crore
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 1 crore | 30% | Nil | 4%l | Nil |
| Above 1 crore but upto 10 crore | 30,00,000+ 30% | 7% | 4% | Nil |
| Above 10 crore | 3,00,00,000+ 30% | 12% | 4% | Nil |
Companies with Gross receipts upto Rs. 400 crore
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 1 crore | 25% | Nil | 4%l | Nil |
| Above 1 crore but upto 10 crore | 25,00,000+ 25% | 7% | 4% | Nil |
| Above 10 crore | 2,50,00,000+ 25% | 12% | 4% | Nil |
Manufacturing company incorporated on or after 1st October 2019 may opt optional tax rate and required to pay @ 15% & companies which do not avail any exemption/incentive may opt for optional tax rate and they are required to pay tax @ 22%
Income Tax Slab for Foriegn Company
In case of Royalty received from govt/Indian concern or technical fees as per agreement approved by government
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 1 crore | 50% | Nil | 4%l | Nil |
| Above 1 crore but upto 10 crore | 50,00,000+ 50% | 2% | 4% | Nil |
| Above 10 crore | 5,00,00,000+ 50% | 5% | 4% | Nil |
Any other Income
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 1 crore | 40% | Nil | 4%l | Nil |
| Above 1 crore but upto 10 crore | 40,00,000+ 40% | 2% | 4% | Nil |
| Above 10 crore | 4,00,00,000+ 40% | 5% | 4% | Nil |
Income Tax Slab for Co-operative Society
| Net Income Slab (Gross Taxable Income - deductions) | Income Tax Rate | Surcharge | Health & Education Cess | Rebate u/s 87A (FY 2019-20) |
|---|---|---|---|---|
| Upto 10,000 | 10% | Nil | 4%l | Nil |
| 10,001 to 20,000 | 1,000+ 20% | Nil | 4% | Nil |
| Above 20,000 but upto 1 crore | 4,000+ 30% | Nil | 4% | Nil |
| Above 1 crore | 30% | 12% | 4% | Nil |
What are the changes in new Income tax slab rates for F.Y. 2019-20(A.Y. 2020-21)?
1- No Tax on Taxable Annual Income up to Rs. 5 Lakh.
The limit of Rebate u/s 87A has been increased from Rs.3.5 Lakhs to Rs.5 Lakhs. Section 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. As per this provision, if an individual’s taxable income is upto Rs. 5 lakhs then he will get the benefit of Rs. 12500 or the amount of tax whichever is lower. If you are liable to pay tax upto the limit of rebate allowed, then after taking the rebate benefit, no payment will be required to be made for tax amount. For availing the full amount of rebate, the Total Taxable Income of return filer shall be up to Rs 5,00,000 for the Financial Year 2019-20, the Assessment year 2020-21.
2- Standard deduction increased from Rs 40,000 to Rs 50,000 for salaried class and pensioners.
3- No change in Income Tax slabs for individuals but a hike in surcharge
The new budget has hiked the surcharged rates to another level. It is as high as 35% for an individual earning income above 5 crore and surcharge of 27% for the income group of 2-5 crore and 15% for income group of 1-2 crore and 10% for 50lakh-1 crore income group individuals.
4- Those companies whose turnover does not exceed INR 400 crore is liable to 25% tax rate and above 400 crore turnover 30% tax.
Calculate your tax liability Post Budget 2019 now! [FY 2018-19 Tax Payments vs FY 2019-20 Tax Payment]
Use our Income Tax Calculator [Updated] now and see your tax saving!
