Income Tax Slab for Senior Citizen 2019-20

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 Rs 2.5 lakh.

Income Tax Slab for Senior Citizen 2019-20 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 for Senior Citizen is the predetermined rates from which an individual’s income is assessed. 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.

Income Tax Slab for Senior Citizen for FY 2019-20:

Income Tax Slab for Senior Citizen Aged Between 60 and 80 years

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

Income Tax Slab for Senior Citizen Aged Above 80 years

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.

These tables 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.

*Read More Article at Dialabank

NEED A LOAN?

I have read the Privacy Policy & Agree to Terms & Conditions and authorize Dialabank & its partner institutions to Call or SMS me with reference to my application.


Latest News