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Income Tax Slab Sate for Individual Residents and Non residents (NRI’s) for F.Y 2019-20 (A.Y 2020-21)

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Income Tax Slab Sate for Individual Residents and Non residents (NRI’s) for F.Y 2019-20 (A.Y 2020-21)

As per Income Tax Act, 1961 there are different tax rates for different category of people. Whether any income is taxable and rate of tax will depend upon residential status of the assessee. In this article we are going to discuss the Income tax Slab rates for Residents as well as Non Resident assessees.

                                                 For Residents Individual

Residents: Individual below 60 years of age

Income Slab

Income Tax

Upto ₹. 2,50,000/-

NIL

Above ₹ 2,50,000/- to ₹ 5,00,000/- (Note:1)

5% of (Taxable income less ₹ 2,50,000).

Above ₹ 5,00,000/- to ₹ 10,00,000/-

₹ 12,500/- + 20% of (taxable income less 5,00,000).

Above ₹ 10,00,000/-

₹ 112,500/- + 30% (taxable income less 10,00,000)

Health & Education Cess (in all cases)

4% of [(Income Tax + Surcharge (Note: 2 )].

 

Residents: Individual (Senior Citizen age above 60 years and below 80 years)

Income Slab

Income Tax

Upto ₹. 3,00,000/-

NIL

Above ₹ 3,00,000/- to ₹ 5,00,000/- (Note:1)

5% of (Taxable income less ₹ 3,00,000).

Above ₹ 5,00,000/- to ₹ 10,00,000/-

₹ 10,000/- + 20% of (taxable income less 5,00,000).

Above ₹ 10,00,000/-

₹ 110,000/- + 30% (taxable income less 10,00,000)

Health & Education Cess (in all cases)

4% of [(Income Tax + Surcharge (Note: 2 )].

 

 

Note: 1

In case the total taxable income of the resident assessee is up to Rs. 5,00,000 then rebate u/s 87A will be up to Rs. 12,500 and hence the tax liability will be ‘Nil’.

 

But if the Taxable Income exceeds Rs. 5,00,000 then income will be taxed as per slab rate mentioned in the above table

 

 

 

Residents: Individual (Super Senior Citizen age above 80 years)

Income Slab

Income Tax

Upto ₹. 5,00,000/-

NIL

Above ₹ 5,00,000/- to ₹ 10,00,000/-

20% of (taxable income less 5,00,000).

Above ₹ 10,00,000/-

₹ 100,000/- + 30% (taxable income less 10,00,000)

Health & Education Cess (in all cases)

4% of [(Income Tax + Surcharge (Note: 2 )].

 

 

 

Note: 2 Surcharge (In all cases) (Subject to Marginal Relief *)

 

  • 10% of Income Tax, in case taxable income is above ₹ 50 lacs.
  • 15% of Income Tax, in case taxable income is above ₹ 1 crore.

 

*Marginal Relief:

  • In case taxable income exceeds the specified limits of ₹ 50 lacs / ₹ 1 Crore as the case may be surcharge will be applicable on income tax at applicable rates. If increase in ‘Income Tax + Surcharge’ is more than the increase income over ₹ 50 lacs / ₹ 1 Crore, the ‘Surcharge’ is reduced by such amount so that the ‘Income Tax + Surcharge’ become equal to increase in ‘Total Taxable Income’ over ₹ 50 lacs / ₹ 1 Crore respectively. The amount so reduced from ‘Surcharge’ is ‘Marginal Relief on Surcharge’.

 

 

 

                            For Non-Residents Individual

Non residents: Individual

Income Slab

Income Tax

Upto ₹. 2,50,000/-

NIL

Above ₹ 2,50,000/- to ₹ 5,00,000/-

5% of (Taxable income less ₹ 2,50,000).

Above ₹ 5,00,000/- to ₹ 10,00,000/-

₹ 12,500/- + 20% of (taxable income less 5,00,000).

Above ₹ 10,00,000/-

₹ 112,500/- + 30% (taxable income less 10,00,000)

Health & Education Cess

4% of [(Income Tax + Surcharge (Note: 3 )].

 

Note: 3 Surcharge (Subject to Marginal Relief *)

 

  • 10% of Income Tax, in case taxable income is above ₹ 50 lacs.
  • 15% of Income Tax, in case taxable income is above ₹ 1 crore.

Note: 4 There is no such category for Senior Citizen and Super senior Citizen in case of Non-Resident individual. Hence no other slab rate for senior citizen and for super senior citizen.

*Marginal Relief:

In case taxable income exceeds the specified limits of ₹ 50 lacs / ₹ 1 Cr. / ₹ 10 Cr. as the case may be surcharge will be applicable on income tax at applicable rates. If increase in ‘Income Tax + Surcharge’ is more than the increase income over ₹ 50 lacs / ₹ 1 Cr. / ₹ 10 Cr., the ‘Surcharge’ is reduced by such amount so that the ‘Income Tax + Surcharge’ become equal to increase in ‘Total Taxable Income’ over ₹ 50 lacs / ₹ 1 Cr. / ₹ 10 Cr. respectively. The amount so reduced from ‘Surcharge’ is ‘Marginal Relief on Surcharge’.

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