Income Tax (Slabs 2019-20)is the annual tax on income which every individual, corporate firm, local authority or company has to pay to the Government.
The tax is calculated on the annual income of a person or entity where the cycle starts from 1st April of the year and ends on 31st March of the next calendar year.
In India, Income Tax is levied on individual taxpayers on the basis of a slab system.
Different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab.
Such tax slabs tend to undergo a change during every budget.
| IT Slabs / Rates, Surcharge, and Cess for AY 2020-21 | |
|---|---|
| Slab | Tax |
| Up to ₹ 2,50,000/- | NIL |
| Above ₹ 2,50,000/- to ₹ 5,00,000/- | 5% of (taxable income - 2,50,000). |
| Above ₹ 5,00,000/- to ₹ 10,00,000/- | ₹ 12,500/- + 20% of (taxable income - 5,00,000). |
| Above ₹ 10,00,000/- | ₹ 112,500/- + 30% (taxable income - 10,00,000) |
| 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. |
| Health & Education Cess | 4% of (Income Tax + Surcharge). |
| Tax Slabs / Rates, Surcharge, and Cess for AY 2020-21 | |
|---|---|
| Income Tax | 30% of taxable income. |
| Surcharge ( subject to Marginal Relief ) | 12% of Income Tax, in case taxable income, is above ₹ 1 crore. |
| Health & Education Cess | 4% of (Income Tax + Surcharge). |
| IT Slabs / Rates, Surcharge, and Cess for AY 2020-21 | |
|---|---|
| Income Tax | 30% of taxable income. |
| Surcharge ( subject to Marginal Relief ) | 12% of Income Tax, in case taxable income, is above ₹ 1 crore. |
| Health & Education Cess | 4% of (Income Tax + Surcharge). |
| Tax Slabs / Rates, Surcharge, and Cess for AY 2020-21 | |
|---|---|
| Income Slab | Income Tax |
| Up to ₹ 10,000/- | 10% of the income. |
| Above ₹ 10,000/- to ₹ 20,000/- | ₹ 1,000/- + 20% of (taxable income - 10,000) |
| Above ₹ 20,000/- | ₹ 3,000/- + 30% of (taxable income - 20,000) |
| Surcharge ( subject to Marginal Relief ) | 12% of Income Tax, in case taxable income is above ₹ 1 crore. |
| Health & Education Cess | 4% of (Income Tax + Surcharge). |
| Income Tax Slabs / Rates, Surcharge, and Cess for AY 2020-21 | |
|---|---|
| Income Tax | 25% of taxable income. |
| Surcharge ( subject to Marginal Relief ) | 7% of income tax, in case taxable income, is above ₹ 1 crore. 12% of income tax, in case taxable income, is above ₹ 10 crores. |
| Health & Education Cess | 4% of (Income Tax + Surcharge). |
| Income Tax Slabs / Rates, Surcharge, and Cess for AY 2020-21 | |
|---|---|
| Income Tax | 30% of taxable income. |
| Surcharge ( subject to Marginal Relief ) | 7% of income tax, in case taxable income, is above ₹ 1 crore. 12% of income tax, in case taxable income, is above ₹ 10 crores. |
| Health & Education Cess | 4% of (Income Tax + Surcharge). |
| Slabs / Rates, Surcharge, and Cess for AY 2020-21 | |
|---|---|
| Income | IT Rate |
| Royalty received from Government | 50% |
| Any other income | 40% |
| Surcharge ( subject to Marginal Relief ) | 2% of income tax, in case taxable income, is above ₹ 1 crore. 5% of income tax, in case taxable income, is above ₹ 10 crores. |
| Health & Education Cess | 4% of (IT + Surcharge). |
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