It’s time to pay your taxes. We are providing a detailed analysis of Income Tax Rates for the Financial Year (FY 2019-2020).
Income Tax Rates For FY 2019-20(AY 2020-21)
In India, we follow a tax slab system of taxing the income of an individual or non-individual. Our Tax system follows a progressive tax slab, wherein the Tax percentage chargeable on Income keeps on increasing with an increase in the taxable income.
Usually the Income tax rates/slabs are notified in the Annual budget and the general expectation is that the slabs are reduced in every budget. However this might not happen very often.
There is usually a cess and or surcharge also payable in many cases depending on the income, which is used for a specific purpose(s) by the Central Government.
Income Tax Rates for Individual Tax Payers for AY 2020-21 (FY 2019-20)
Income Tax Slabs | For Resident Individuals ( less than 60 years as on 31st March )/ HUF/ AOP/ BOI/ Non resident individual |
| Up to ₹2,50,000 | Nil |
| ₹2,50,000 to ₹5,00,000 | 5% of total income exceeding ₹ 2,50,000 |
| ₹5,00,000 to ₹10,00,000 | ₹12,500 + 20% of total income exceeding ₹ 5,00,000 |
| Above ₹10,00,000 | ₹1,12,500 + 30% of total income exceeding ₹ 10,00,000 |
Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above.
Surcharge: 10% of income tax, where total income exceeds ₹ 50 lakh up to ₹1 crore.
Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2crore.
Surcharge: 25% of income tax, where the total income exceeds ₹2crore up to ₹5 crore.
Surcharge: 37% of income tax, where the total income exceeds ₹ 5crore
Income Tax Slabs | Tax Rate for Senior citizens aged 60 Years But Less Than 80 Years( On given day during the financial year) |
| Up to ₹3,00,000 | No tax |
| ₹3,00,000 – ₹5,00,000 | 5% of total income exceeding ₹ 3 lakh |
| ₹ 5,00,000 – ₹10,00,000 | 10,000 plus 20% of total income exceeding ₹ 5 lakh |
| Income more than ₹10,00,000 | 110,000 plus 30% of total income exceeding ₹ 10 lakh |
Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above
Surcharge: 10% of income tax, where total income exceeds ₹50 lakh up to ₹1 crore.
Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2crore.
Surcharge: 25% of income tax, where the total income exceeds ₹2 crore up to ₹5 crore.
Surcharge: 37% of income tax, where the total income exceeds ₹5crore
Income Tax Slabs | Tax Rate for Super Senior Citizens aged 80 Years And Above( on any day in the financial year) |
| Up to ₹ 5,00,000 | No tax |
| ₹ 5,00,000 – 10,00,000 | 20% of income exceeding ₹ 5 lakh |
| More than ₹10,00,000 | ₹1 lakh plus 30% of income exceeding ₹10 lakh |
Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above
Surcharge: 10% of income tax, where total income exceeds ₹ 50 lakh up to ₹1 crore.
Surcharge: 15% of income tax, where the total income exceeds ₹1 crore up to ₹2crore.
Surcharge: 25% of income tax, where the total income exceeds ₹2 crore up to ₹5 crore.
Surcharge: 37% of income tax, where the total income exceeds ₹5 crore
Income Tax Slabs for Firms for AY 2020-21 (FY 2019-20) | Tax Rate |
| On whole of the total income | 30% |
Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above
Surcharge: If taxable income is more than ₹ 1Cr., then surcharge @12% on tax is also payable.
Income Tax Slabs for AY 2020-21 (FY 2019-20) | Tax Rate for Co-operative Societies |
| Income up to ₹10,000 | 10% |
| Income from ₹10,000 – ₹20,000 | ₹ 1000 plus 20% of the amount which exceeds ₹ 10,000 |
| Income more than ₹20,000 | ₹ 3000 plus 30% of the amount which exceeds ₹ 20,000 |
Additional 4% Health & education cess will be applicable on the tax and surcharge amount calculated as above
Surcharge: 12% of income tax, where the total income exceeds ₹1 crore.
Income Tax Rates for Local Authority for AY 2020-21 (FY 2019-20)
| Tax Rate | |
| On whole of the total income | 30% |
Additional 4% Health & education cess will be applicable on the tax and surcharge amount calculated as above
Surcharge: 12% of income tax, where the total income exceeds ₹ 1 crore.
Income Tax Rates for Domestic Companies for AY 2020-21 (FY 2019-20)
| Turnover | Tax Rate |
| Gross turnover upto Rs 400 crore in the F.Y. 2017-18 | 25% |
| Gross turnover exceeding Rs 400 crore in the F.Y. 2017-18 | 30% |
| Where the company opted for section 115BA | 25% |
| Where the company opted for section 115BAA | 22% |
| Where the company opted for section 115BAB | 15% |
Additional 4% Health & education cess applicable on the tax and surcharge amount calculated as above.
Surcharge: 7% of income tax, where total income exceeds ₹ 1 crore but does not exceed Rs 10 crore.
Surcharge: 12% of income tax, where the total income exceeds ₹10 crore
Pay your income tax online . Refer to Income Tax Rates for FY2019-20 here.
For further assistance, please contact us.