We all pay direct and indirect taxes. Indirect taxes are the one which is paid to the government indirectly. An example of the indirect tax could be the GST we pay on services. We also pay direct taxes to the government. The direct taxes are the one which we pay directly to the government. The example of direct tax is income tax and property tax.
As this financial year is coming to an end, you will be paying the income tax to the government again. People who work in the service sector are subjected to TDS on monthly basis but there can be a demand for extra tax or there can be a return waiting for them.
In such a case, it becomes really important the know the Income Tax Slab and hence we decided to list the details of the Income Tax Slab for the Assessment Year 2019-20 in India.
Special Note – Please do not get confused when you notice Assessment Year 2019-20. The assessment year 2019-20 starts from 1st April 2018 and it gets over on 31st March 2019.
Let us now look at the Income Tax Slab for the Assessment Year 2019-20 in India. We have divided this into three sections. The first section is for the individuals for upto 60 years of age, the second slab is for the individuals who are between 60 and 80 years of the age and the last section is for the individuals who are above 80 years of age.
Section 1 – Income Tax Slab for the Assessment Year 2019-20 in India for Individuals Less than 60 Years Old
| Taxable Income | Tax Rate |
| < Rs 2,50,000 | 0% |
| Between Rs 2,50,000 and Rs 5,00,000 | 5% |
| Between Rs 5,00,000 and Rs 10,00,000 | 20% |
| > Rs 10,00,000 | 30% |
Section 2 – Income Tax Slab for the Assessment Year 2019-20 in India for Individuals between 60 and 80 Years Old
| Taxable Income | Tax Rate |
| < Rs 2,50,000 | 0% |
| Between Rs 2,50,000 and Rs 5,00,000 | 5% |
| Between Rs 5,00,000 and Rs 10,00,000 | 20% |
| > Rs 10,00,000 | 30% |
Section 3 – Income Tax Slab for the Assessment Year 2019-20 in India for Individuals More than 60 Years Old
| Taxable Income | Tax Rate |
| < Rs 5,00,000 | 0% |
| Between Rs 5,00,000 and Rs 10,00,000 | 20% |
| > Rs 10,00,000 | 30% |
These were the taxable Income Rate Slabs for the Assessment Year 2019-20 but before we conclude, we would like to throw some light on the taxable income and we would also like to demonstrate the calculation of income tax for you.
Taxable Income – It should be noted that that the taxable income is not what you earn in total but the taxable income is calculated after subtracting all the deductions and rebates. For example, your total income for the year was Rs 3.5 Lakhs. In this, you made investments under Section 80C worth Rs 1 Lakh. This investment amount will be subtracted from your total income to arrive at your taxable income. Hence, in this case, your taxable income will be Rs 2.5 Lakhs.
Calculation of Income Tax
- For the purpose of demonstration, we will be assuming that your taxable income for the assessment income for the year 2019-20 was Rs 6 Lakhs. In such a case, how would you calculate your tax? Refer to the points below to get an idea.
- For the first Rs 2.5 Lakh, there is no tax. For the next 2.5 lakh Rs, there is a tax of 5% and for the next Rs 1 Lakh, the tax rate would be 20%. Based on these numbers, you can calculate the tax.Refer to the table before for tax calculation
| Bifurcation of 6 Lakh | Tax Slab Applicable | Tax Payable in Rs |
| 2.5 Lakh | 0% | 0 |
| 2.5 Lakh | 5% | 12,500 |
| 1 Lakh | 20% | 20,000 |
| Total Tax | 32,500 |
- This means that for the income of Rs 6 Lakh, you have to pay a total tax of Rs 32,500.
This was all about the income tax slabs, taxable incomes and calculation of income tax slab. We tried to cover each and everything for you so that you get an idea about how your tax is being calculated and how much you need to pay. Thank You.
