Income Tax Slabs Rates in India for FY 2019-20
Income tax is referred to as a progressive tax i.e. the rate at which tax on income is payable increases with the income of the assesses. Also, slab rates specify the threshold annual income limits at which a higher or lower rate of tax is applicable.
First of all, In the following sections, we will discuss the income tax rates for FY 2018-19 (AY 2019-20) and some other key features of income tax in India.
Income Tax Slabs for Assessment Year 2019-2020
As per the Union Budget of 2018, below are the various slabs according to which income tax is assessed in various categories of income tax assesses.
Resident Individuals & Non-Resident Indians
Under existing rules of the Income Tax Act, 1961, resident Indian and non-resident Indians (NRIs) are taxed according to the same tax slabs and rates. The following are the IT slabs and slab rates for AY 2019-20 in case of resident and non-resident Indians aged less than 60 years:
| Income Threshold | Tax rate applicable |
| Up to ₹ 2,50,000 | NIL |
| ₹ 2,50,001 to ₹ 5,00,000 | 5% on income exceeding Rs. 2.5 lakh (max. Rs. 12,500) |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% on income exceeding Rs. 5 lakh (max. Rs. 1 lakh) + Rs. 12,500 |
| Over ₹ 10,00,000 | 30% on income exceeding Rs. 10 lakh + Rs. 1 lakh + Rs. 12,500 |
Additional Components
Surcharge: In case income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. For income, more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount exceeding ₹ 1 crore.
Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
The interim budget 2019 has provisioned to provide a full tax rebate to individuals having a net taxable income (income adjusted after eligible tax deductions) up to Rs 5lakhs. It means that the maximum tax rebate provided under section 87A has been increased from Rs. 2,500 to Rs. 12,500. Individuals having net taxable income up to Rs. 5lakhs can claim the tax rebate under 87A and thus effectively pay zero tax.
Tax Slabs For NRI
For the Financial Year of 2018-19, the tax slabs and rates are as follows:
| Taxable Income | Tax Rate |
| Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,000 to Rs 5,00,000 | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Hindu Undivided Families (HUFs)
Hindu Undivided Family (HUF) is headed by a Karta (designated head of the family). HUF has a legal identity similar to that of an artificial judicial person for taxation purposes. The following are the slab rates applicable to HUF for AY 2019-20 (FY 2018-19):
| ncome Threshold | Tax rate applicable |
| Up to ₹ 2,50,000 | Nil |
| ₹ 2,50,001 to ₹ 5,00,000 | 5% on income exceeding Rs. 2.5 lakh (max. Rs. 12,500) |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% on income exceeding Rs. 5 lakh (max. Rs. 1 lakh) + Rs. 12,500 |
| Over ₹ 10,00,000 | 30% on income exceeding Rs. 10 lakh + Rs. 1 lakh + Rs. 12,500 |
Additional Components
Surcharge: In case income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. For income, more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount exceeding ₹ 1 crore.
Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
Senior Citizens
Senior citizens in India are defined as individuals aged over 60 years and less than 80 years as per current tax rules. The following are the AY 2019-20 tax rates for senior citizens applicable to earnings for the financial year (FY) 2018-19:
| Income Threshold | Tax rate applicable |
| Up to ₹ 3,00,000 | Nil |
| ₹ 3,00,001 to ₹ 5,00,000 | 5% on income exceeding Rs. 3 lakh (max. Rs. 10,000) |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% on income exceeding Rs. 5 lakh (max. Rs. 1 lakh) + Rs. 10,000 |
| Over ₹ 10,00,000 | 30% on income exceeding Rs. 10 lakh + Rs. 1 lakh + Rs. 10,000 |
Additional Components
- Surcharge: In case income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. For income, more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount exceeding ₹ 1 crore.
- Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
Super Senior Citizens
Under taxation rules in India applicable to income earned in FY 2018-19 for ITR filing in AY 2019-20, super senior citizens are defined as individuals who are aged 80 years and more during the applicable fiscal. The individuals feature IT slab and income tax rates that are different from that of other tax assessees as follows:
| Income Threshold | Tax rate applicable |
| Up to ₹ 5,00,000 | No tax |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% on income exceeding Rs. 5 lakh (max. Rs. 1 lakh) |
| Over ₹ 10,00,000 | 30% on income exceeding Rs. 10 lakh + Rs. 1 lakh |
Additional Components
- Surcharge: In case income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. For income, more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount exceeding ₹ 1 crore
- Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
Partnership Firms
The applicable tax rate for any Partnership Firms & Limited Liability Partnerships (LLP) is at a flat rate of 30%.
Additional Components
- Surcharge: In case income is more than ₹ 1 crore, the surcharge is applicable @ 12% over income tax amount.
- Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
Local Entity / Authorities
The tax rate applicable for Local Authorities is on a flat rate of 30%.
Additional Components
- Surcharge: In case income is more than ₹ 1 crore, the surcharge is applicable @ 12% over income tax amount.
- Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
Domestic Entity Companies
The tax rate applicable for any Domestic Companies is at a flat rate of 30%. However, if the gross receipt of the company does not go beyond ₹ 250 crores in the previous year, the company has to pay taxes at a rate of 25%.
Additional components applicable to Domestic Entity Companies are:
- Surcharge: In case income is between ₹ 1 crore and ₹ 10 crores, the surcharge is applicable @ 7% of the income tax amount. However, if the amount exceeds ₹ 10 crores, the surcharge payable is at a rate of 12%. The income tax department provides marginal relief to companies in special cases:
Foreign Entity / Companies
| Nature of Income | Tax rate |
| If any Foreign Company operating in India receives income as royalty compensated by the Government of India against the agreements executed with the Indian concern (after 31st March 1961, and prior to 1st April 1976) | 50% |
| If any Foreign Company operating in India receives income as fees for any technical services provided as per the agreements executed with an Indian concern (after 29th February 1964, and prior to 1st April 1976) | 50% |
| Any other additional income earned by the Foreign Company operating in India | 40% |
Additional Components
- Surcharge: In case the income is between ₹ 1 crore and ₹ 10 crores, the surcharge is applicable @ 2% of the income tax amount. If income is greater than ₹ 10 crores – 5% of the income tax amount is charged as surcharge
- Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
Co-operative Societies
Urban / Semi-urban/ Rural excluding Self Help Group (SHG) and Agricultural Societies.
| Income Threshold | Tax rate applicable |
| Up to ₹ 10,000 | 10% |
| ₹ 10,001 to ₹ 20,000 | 20% |
| Over ₹ 20,000 | 30% |
Plus :
- Surcharge: In case income is more than ₹ 1 crore, the surcharge is applicable @ 12% of the income tax amount.
- Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.
Tax Rates Comparison FY 2019-20 Vs FY 2018-19
Income Tax Slab Rates for individuals less than 60 years of age and HUF
| Income range per annum | Tax Rate FY 2019-20, AY 2020-21 | Tax Rate FY 2018-19, AY 2019-20 |
| Up to Rs. 2.5 lakhs | No Tax | No Tax |
| Above Rs. 2.5 lakhs to Rs. 5 lakhs | 5% + 4% cess | 5% + 4% cess |
| Above Rs. 5 lakhs to Rs. 10 lakhs | 20% + 4% cess | 20% + 4% cess |
| Above Rs. 10 lakhs to Rs. 50 lakhs | 30% + 4% cess | 30% + 4% cess |
| Above Rs. 50 lakhs to Rs. 1 crore | 30% + 10% surcharge + 4% cess | 30% + 10% surcharge + 4% cess |
| Above Rs. 1 crore | 30% +15% surcharge + 4% cess | 30% +15% surcharge + 4% cess |
| Rebate under section 87(A) | 100% tax rebate subject to maximum of Rs. 12,500 available to resident individual whose net taxable income does not exceed Rs. 5 lakhs | 100% tax rebate subject to maximum of Rs. 2,500 available to resident individual whose net taxable income does not exceed Rs. 3.5 lakhs |