Income Tax Slab Rates for FY 2019-20 / AY 2020-21 | Interim-Budget 2019-20 Key Highlights

The Indian Finance Minister has tabled today, the Union General Budget 2019-20 in the Parliament. Below are the latest Income Tax Slab Rates for FY 2019-20 or AY 2020-21. (FY is Financial Year and AY is Assessment Year)

Latest Income Tax Slab Rates FY 2019-20

The income tax slabs & rates are categorized as below;

  • Individual resident aged below 60 years.
  • Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time  during the previous year) &.
  • Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year).
Latest income tax slab rates FY 2018-19 AY 2019-20 Tax rates for individuals budget 2019-2020 pic
Latest Income Tax Slab Rates FY 2019-20 / AY 2020-21

Budget 2019-20 & Personal Finance : Key Highlights 

Below are the latest personal finance proposals that have been made in Budget 2019-20 ;

  • Income upto Rs 5,00,000 to be exempt from income tax. Individual taxpayers having taxable annual income up to Rs 5 lakhs will get full tax rebate (u/s 87A) and therefore will not be required to pay any income tax.
    • So those with income up to Rs 5 lakh and another Rs 1.5 lakh in investments (u/s 80c) totaling Rs 6.5 lakh will have to pay no tax. This proposal may benefit nearly Rs 3 crore middle class income earners.
    • I believe that if your taxable income is more than Rs 5 Lakh, this tax rebate is not applicable. So, there is no change/impact for the tax assessees who fall under 20% or 30% Tax Slab Rate.
    • Kindly note that there is no change in Tax Slab Rates.
  • The current Standard Deduction of Rs 40,000 for FY 2018-19 is proposed to be increased to Rs 50,000 for FY 2019-20.
  • Proposal to not to deduct TDS of up to Rs 40,000 on interest income from Bank / Post office deposits (the current FY 2018-19 TDS threshold limit u/s 194A is Rs 10,000).
  • Currently, income tax on notional rent is payable if one has more than one self-occupied house. No tax on notional rent on Second Self-occupied house has been proposed. So, you can now hold 2 Self-occupied properties and don’t have to show the rental income from second SoP as notional rent.
  • The benefit of rollover of capital gains under section 54 of the Income Tax Act will be increased from investment in one residential house to two residential houses for a tax payer having capital gains up to Rs 2 crore. This benefit can be availed once in a life time.
  • TDS threshold for home rent paid by non-individuals has been increased from Rs 1.8 lakh to Rs 2.4 lakh p.a.
  • All income tax returns to be processed within 24 hours and refunds to be issued simultaneously
  • Tax scrutiny will also now be done electronically and there will be no interaction between the tax authority and the taxpayer.  

Calculation of Income Tax for FY 2019-20/AY 2020-21 | Illustrations

Let’s now discuss some scenarios on ‘How to calculate the tax on our total income?’

Assessees who are in 30% Tax Slab and below 60 years of age

Let us say your net taxable income (after all deductions like Sec.80C and all) Rs.16,00,000.

  • Up to Rs.2,50,000-NIL
  • Rs.2,50,001 to Rs.5,00,000-Rs.12,500  @5%.
  • Rs.5,00,001 to Rs.10,00,000-Rs.1,00,000 @20%
  • Rs.10,00,001 and above (in this case Rs.16,00,000)=Rs.1,80,000 @30%.
  • So total tax will be Rs.12,500+Rs.1,00,000+Rs.1,80,000=Rs.2,92,500.

Assessees who are in 20% Tax Slab and below 60 years of age

Let us say your net taxable income (after all deductions like Sec.80C and all) Rs.8,00,000.

  • Up to Rs.2,50,000-NIL
  • Rs.2,50,001 to Rs.5,00,000-Rs.12,500 @5%.
  • Rs.5,00,001 to Rs.8,00,000=Rs.60,000 @20%
  • Therefore, the total tax will be Rs.12,500+Rs.40,000=Rs.72,500.

Assessees who are in the lowest Tax Slab and below 60 years of age

Let us say your income is Rs.4,00,000

  • Up to Rs.2,50,000-NIL
  • Rs.2,50,001 to Rs.4,00,000-Rs.7,500 @5%.
  • However, using Sec.87A of IT Act, your tax liability will be ZERO.

An individual who is resident Indian and whose total taxable income does not exceed Rs. 5,00,000 is entitled to claim rebate under section 87A of up to Rs.12,500 (w.e.f AY 2020-20).

  • 4% health and education cess applies to all slabs.
  • Surcharge is levied if taxable income is more than Rs 50 lakh.  A Surcharge is levied on the amount of income tax payable and the Health and Education cess of 4 per cent will be levied on the amount of income tax plus surcharge.
Latest Surcharge rates on income for FY 2019-20 AY 2020-21
Latest Surcharge rates on income for FY 2019-20 AY 2020-21

Other Key Proposals:

  • Govt Proposes to launch Pradhan Mantri Kisaan Samman Nidhi.
    • Farmers with less than 2 hectare land will be given an income support of Rs 6,000 per year as direct transfer in three equal installments.
  • Govt proposes to launch ‘Shram Yogi Mandhan’, a Pension scheme of the un-organized sector workers, with monthly income upto Rs 15,000.
    • Under this new pension yojana, an assured monthly pension of Rs 3,000 from the age of 60 years will be provided on a monthly contribution of a small affordable amount during their working age.
    • For instance, an unorganised sector worker joining pension yojana at the age of 29 years will have to contribute only Rs 100 per month till the age of 60 years. An equal contribution (Rs 100) to the Pension scheme will be made by the Govt as well.

Kindly go through the other important tax proposals announced in the Full Budget (July) 2019..

Continue reading :

  1. Income Tax Slab Rates for FY 2020-21 / AY 2021-22 | Budget 2020 Key Highlights
  2. All in one guide to ‘Budget 2019 Proposals related to Personal Finance’
  3. List of Income Tax Deductions for FY 2018-19 / AY 2019-20
  4. Rs 50000 Standard Deduction from FY 2019-20 | What is the impact on your Taxable Income?
  5. Income Tax Deductions List FY 2019-20 | List of important Income Tax Exemptions for AY 2020-21

(Image courtesy of Stuart Miles at (Post first published on 01-February-2019) 

(This article is based on limited available information, if required, the content will be edited/updated. Kindly note that these proposals may or may not be implemented by the next forming Union Govt.)

About The Author

  • guniputikrishna1 says:

    Sir, I am a senior citizen . Suppose my pensionary
    income is 10,00,000 . After deducting standard deduction 50,000/- ; savings 1,50,000/- and amount of 3,00,000/- exempted from IT , taxable income arrves to 5,00,000/-.Am I eligible for tax rebate u/s 87A.

  • Krishnamurthy says:

    Dear srikanth reddy garu Namaste. You are clearing the doubts of so many in quick manner. Sir taxable income means amount arrived after deducting standard deduction , savings amount of Rs 150000/- and amount exempted from incometax , I feel . Kindly conferm the correctness.
    Krishnamurthy Tirupati.


    How to workout TAXABLE INCOME means i.e. it includes deduction of 80D, 80G or excludes i.e. includes only 80C only Rs. 150000/-.

  • Parthibhan says:

    Hi Sreekanth, Thank you for all the amazing work you’re doing on this blog. I just wanted to point out a small issue in this page where the tax slabs are given. The image above actually shows last year’s tax slab but when you click on it, we can see the latest slab for 2019-20. Cheers, Parthibhan

    • Sreekanth Reddy says:

      Dear Parthibhan,
      Kindly note that there are no changes in tax slabs between previous FY and the current FY.

      Yes, the link was pointing to a wrong image on click, have updated it. Thank you!

  • Patil N. says:

    What will be the tax on rent yearly income of Rs. 5lakh

  • I really love this blog and prefer reading personal finance content here only. Anyone can learn about personal finance here and start investing with a little guidance. Cheers!!

  • MoneyManch says:

    Excellent summery of Budget 2019-20.

  • Ananthi Mathur says:

    The budget provides for tax benefitsNil Income Tax for individuals with a taxable income of upto Rs 5 lakh. Thus, an individual with a taxable income of Rs 7 lakh would need to pay a tax of Rs 32,500 (excluding health & education cess).

  • Trinadha Rao Gantla says:

    Its nice and informative sreekanth thank you

  • debkumar dandapat says:

    thanks Sreekanth for such a lucid presentation. now I have a question and it is a bit off-topic. if I pay my insurance premium in advance for next FY year may I claim tax deduction US/80 C this year? Your reply would be appreciated. thanks.

    • Sreekanth Reddy says:

      Dear debkumar,
      Generally the deductions can be claimed during the year (FY) in which they have been paid.
      But, I believe that IRDA has stopped ‘advance premium payment facility beyond 30 days’.

      In case of single premium health insurance policies having cover of more than one year, it is proposed (Budget 2018-19) that the deduction shall be allowed on proportionate basis for the number of years for which health insurance cover is provided, subject to the specified monetary limit.

  • Prof. Subhas Babu says:

    Amazing! very good infn dissemnated very quickly. You are great
    Keep it up!!!

  • Nand Kumar Yadav says:

    Dear Sir,
    Thanks for providing your valuable information.
    Best regards,
    Nand Kumar Yadav

  • TKKOUL says:

    Thank you Sreekanth jee for clarifying the details. What about income from interest earned by senior citizens this year and the next year.

  • Krish Joshi says:

    No concession to pensioners / senior citizens. They cannot add 150000/- to get exemption up to 650000/- if their pension is more because of their age. So they should be given tax exemption up to 650000-00

  • Kiran says:

    Hello, my income is 15.4 lpa, could you please send the each breakout for my taxplanning and how much can I save in tax in next financial year.

    • Kiran says:

      There is no change in the tax means, do we need to pay 5% of tax for 5 lakhs? Please co firm.

      • Sreekanth Reddy says:

        Dear Kiran,
        As your income is above Rs 15 Lakh, your net taxable income (after deductions) can be above Rs 5 Lakh, so you need to pay tax.

    • Sreekanth Reddy says:

      Dear Kiran,
      The amount of tax that you can save depends on your tax saving options.

      For example : An individual who earns up to Rs 10 Lakh and claim major tax deductions like 80c+80D+SD+Sec24 etc can have NIL tax liability.



    9444 988 7**

  • Digvijay Singh says:

    I have same question as asked by Sagar Agarwal

  • Sagar Agarwal says:


    For the individual tax rates – can you please confirm if it is a tax slab rate change or is it that a rebate will be given only for people upto income of 5 lakhs?

    There have been few articles which state that this move only benefits those whose final taxable income is below 5 lakhs – if your final taxable income is more than that – then no such rebate is provided.


    • Suresh says:

      I also have same question. The table listed gives different impression.

      • Sreekanth Reddy says:

        Dear Sagar / Suresh,
        As per my interpretation, the’ tax rebate on income of up to Rs 5 Lakh is not applicable if your taxable income crosses Rs 5 Lakh.

        For ex : If your income is say Rs 10 Lakh then there is no change in tax slab rate.

        But, let’s wait for few days to get a clarity on this

      • Sreekanth Reddy says:

        Dear Suresh,
        I have updated the Table. Thank you!

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