The rebate of Rs 12,500 has been announced for the taxpayers in the interim budget 2019 with the taxable income of up to Rs 5 lakh. According to section 87A of the income tax act, this rebate will be available. The finance minister left the income tax slab and rates for the FY 2019-20 unchanged. The exemption limit for Non-resident individuals (NRI) is of Rs 2.5 lakh.

These income tax slabs will be applicable for the financial year 2018-19, and once these budget proposals get passed by the Parliament, then these will be applicable for FY 2019-20.

Income tax slab is the predetermined rates from which an individual’s income is assessed. These are based on the number of factors including the amount of income earned by a person, the type of income, and the age of the tax-paying individual. Based on these factors, the slab is categorized into three categories:

  1. Individuals: whose age is less than 60 years.
  2. Senior citizens: whose age is between 60 years and above, but below 80 years.
  3. Super Senior Citizens: whose age is above 80 years.

 

These tables show the latest income tax slabs for FY 2019-20:

What are the Income tax slabs for an individual between 60 and 80 years of age (Senior Citizen) 

Taxable Income Slabs

Income Tax Rates and Cess

Up to Rs 3 lakh

Nil

Rs 3,00,001 to Rs 5,00,000

5% of (Total Income minus Rs 3,00,000)+ 4% cess

Rs 5,00,000 to Rs 10,00,000

Rs 10,000 + 20% of (Total income minus Rs 5,00,000) + 4% cess

Rs 10,00,001 and above

Rs 1,10,000 + 30% of (Total Income minus Rs 10,00,000) +4% cess

 

 

What are the Income tax slabs for an individual above 80 years of age (Super Senior Citizen) 

Taxable Income Slabs

Income Tax Rates and Cess

Up to Rs 5 lakh

Nil

Rs 5,00,001 to Rs 10,00,000

20% of (Total Income minus Rs 5,00,000) + 4% cess

Rs 10,00,001 and above

Rs 1,00,000 + 30% of (Total Income minus Rs 10,00,000) + 4% cess

If a net income of the individuals exceeds Rs 50 lakh, but it is below Rs 1 crore, then 10% of surcharge will be levied on the income tax payable before levying  4% of cess. And if the net income exceeds Rs 1 crore, then 15% of surcharge will be charged.

The cess on income tax increased from 3% to 4%. As there is a hike in the cess, the tax liability for the highest slab has increased by Rs 2,625, for the middle-income tax slab it has increased by Rs 1,125 and for the lowest income tax slab, there is a nominal increase of Rs 125.

This table shows tax liability.

A resident individual between 60 and 80 years of age (Senior Citizen)

Net Income range

Income Tax Rates and Cess

Net Taxable Income

Post Budget

Increase in Tax due to Cess

Up to Rs3,00,000

Nil

3,00,000

-

-

Rs 3,00,001 to Rs 5,00,000

5% of (total income minus Rs 3,00,000)+ 4% cess

5,00,000

10,400

100

Rs 5,00,001 to Rs 10,00,000

Rs 10,000 + 20% of (total income minus Rs 5,00,000) + 4% cess

10,00,000

1,14,400

1,100

Rs 10,00,001 and above

Rs 1,10,000 + 30% (total income minus Rs 10,00,000)+ 4% cess

15,00,000

2,70,400

2,600

A senior citizen whose income is up to Rs 3 lakh is exempted from tax. 5% tax is levied on the individual whose income is between Rs 3,00,001 to Rs 5 lakh, 20% tax on those whose income is between Rs 5,00,001 to Rs 10 lakh and 30% tax on those whose income is above Rs 10 lakh.

A resident individual above 80 years of age (Super Senior Citizen)

Net Income range

Income Tax Rates and Cess

Net Taxable Income

Post Budget

Increase in Tax due to Cess

Up to Rs 5 lakh

Nil

5,00,000

-

-

Rs 5,00,001 to Rs 10,00,000

20% of (Total Income minus Rs 5,00,000) + 4% cess

10,00,000

1,04,000

1,000

Rs 10,00,001 and above

Rs 1,00,000 + 30% of (Total Income minus Rs 10,00,000) + 4% cess

15,00,000

2,60,000

2,500

 

A super senior citizen whose income is up to Rs 5 lakh is exempted from tax. 20% tax is levied on the individual whose income is between Rs 5,00,001 to Rs 10 lakh and 30% tax on those whose income is above Rs 10 lakh.

The secondary cess of 1% and education cess of 2% are calculated on the amount of tax payable separately, and then both the cess are added to the tax payable which arrives at the Gross tax payable amount.

Resident between 60 and 80 years of age

Net Income Range

Income Tax Rates

Education Cess

Secondary and Higher Education Cess

Up to Rs3,00,000

Nil

Nil

Nil

Rs 3,00,001 to Rs 5,00,000

5% of (total income minus Rs 3,00,000)+ 4% cess

2% of income tax

 

1% of income tax

Rs 5,00,001 to Rs 10,00,000

Rs 10,000 + 20% of (total income minus Rs 5,00,000) + 4% cess

2% of income tax

1% of income tax

Rs 10,00,001 and above

Rs 1,10,000 + 30% (total income minus Rs 10,00,000)+ 4% cess

2% of income tax

1% of income tax

Resident above 80 years of age

Net Income Range

Income Tax Rates

Education Cess

Secondary and Higher Education Cess

Up to Rs 5 lakh

Nil

Nil

Nil

Rs 5,00,001 to Rs 10,00,000

20% of (Total Income minus Rs 5,00,000) + 4% cess

2% of income tax

 

1% of income tax

Rs 10,00,001 and above

Rs 1,00,000 + 30% of (Total Income minus Rs 10,00,000) + 4% cess

2% of income tax

 

1% of income tax

15% of surcharge is levied on the income tax amount where net income exceeds Rs 1 crore and 10% where the net income exceeds Rs 50 lakh and below Rs 1 crore. When the surcharge will be levied, then the cess will be levied on the tax amount plus surcharge.