Income Tax Slabs and Tax Rate for Financial Year 2019-2020 (Assessment Year 2020-2021)
Income Tax Rate for Financial Year 2019-2020 for Salaried Employees and Officers Working under Government Services
Deduction as per Income Tax Rules
As per the Income Tax rules, no tax for the annual earning less than Rs. 2,50,000. All Central Government employees need to file Income Tax Return (ITR) on their income (as on date, the minimum salary of CG employees will be Rs. 23,553) for the Assessment Year 2020-2021.
No rebate of Income Tax u/s 87A, if taxable income marginally exceeds the limit of Rs. 5 Lakh
Income Tax recoveries are to be regulated in respect of every Central Govt employee in the ensuing months by deduction through their pay bills for the month of November 2019 to February 2020.
Income Tax Slabs | IT Tax Rates |
Income Up to Rs. 2,50,000 | NIL |
Rs. 2,50,001 to Rs. 5,00,000 | 5% of the amount by which the total income exceeds Rs. 2,50,000 further subject to rebate under section 87A where applicable. |
Rs. 5,00,001 to Rs. 10,00,000 | Rs. 12,500 plus 20% of the amount by which the total income exceeds Rs. 5,00,000. |
Income above Rs. 10,00,000 | Rs. 1,12,500 plus 30% of the amount by which the total income exceeds Rs. 10,00,000. |
Surcharge: Nil up to the income of Rs. 50 lakhs (10% of IT in case of income above 50 lakhs and 15% of IT in case of income above 1 Crore)
Health and Education Cess: 4% of Income Tax
Standard Deduction: Standard Deduction u/s 16 (ia) is enhanced to Rs.50,000/- for the Financial Year 2019-20. The benefit of increased standard deduction shall be available to salaried persons and pensioners.
Amendment in rebate u/s 87A: Rebate of Income Tax u/s 87A in case of certain individual where net taxable income is upto Rs.5 Lac (previous year Rs.3.5 Lac), there will be no income tax for the FY 2019-20. Further, if taxable income marginally exceeds the limit of Rs. 5 Lakh, there will be no rebate of Income Tax under this section.
Income from House Property: There is amendment in Sections 23 where tax payer is allowed to opt two house as self-occupied house (earlier it was allowed for only one house) and remaining house(s), if any has to be shown as let out. u/s 24, the tax payer, can now claim interest for both the house. However, the aggregate monetary limit of the deduction would remain the same i.e. Rs.2,00.000/-
Top Latest Developments on Income Tax Rule