Income Tax Calculation for FY 2019-20

Income Tax Calculation for FY 2019-20

Income Tax Slabs

                         In this post, we will discuss Income tax slabs in Financial Year 2019-20. As we know that there are only two months are left for closure of Financial Year 2019-20. So for all the employees and individuals whose total income is more than Rs. 2, 50,000/- can check their payable amount of Income-tax.

                        First of all, we will see what the income tax slabs are in Financial Year 2019-20 (Assessment Year 2020-21).

Individuals having age is less than 60 Years (<60)

Slabs of Income Tax	Tax rate for Individuals
Up to ₹ 2,50,000/-	Nil
From ₹ 2,50,000/- to 5,00,000/-	5%
From ₹ 5,00,000/- to 10,000,00/-	20%
Above ₹ 10,000,00/-	30%

Individuals having age is between 60 to 80 Years (>=60 and <80)

Slabs of Income Tax	Tax rate Senior Citizens
Up to ₹ 3,00,000/-	Nil
From ₹ 3,00,000/- to 5,00,000/-	5%
From ₹ 5,00,000/- to 10,000,00/-	20%
Above ₹ 10,000,00/-	30%

Individuals having age is equal to or more than 80 Years (>=80)

Slabs of Income Tax	Tax rate for Super Senior Citizens
Up to ₹ 5,00,000/-	Nil
From ₹ 5,00,000/- to 10,000,00/-	20%
Above ₹ 10,000,00/-	30%

Maximum savings Under section 80C is ₹ 1,50,000/-. From this financial year, the standard deduction is ₹ 50,000/- which is ₹ 40,000/- in earlier Financial Year. Health & Higher Education cess is 4% on the tax amount which is 3% in the earlier financial year.

Now we will calculate the income tax of a resident individual of 56 years of age. Let us assume his total income from all sources (that is from Salary, Arrears, Interest from FD’s and other income) is ₹ 7,98,600/-. His total savings from Provident Fund, tuition fee and LIC are ₹ 1.76,548/-. Professional tax deducted is ₹ 2,400/-. His Net taxable income will be calculated as follows:-

Net taxable income= Total Income-Professional Tax- Savings U/s 80C-Standard Deduction.

= 7,98,600-2400-150000-50000

= 5,96,200/-

As you can see net taxable income is 5,96,200/-. Now we will calculate tax on this income

Up to Income 5 lacs:-

5,00,000-2,50,000(as there is no tax on ₹ 2,50,000/-)=2,50,000*5%

                                    tax up to 5 lacs= 12,500/-

Above 5 lacs:-

the amount left which is above 5 lacs is 96,200/-

so tax will be=96,200*20%

tax above the amount of 5 lacs = 19,240/-

Now total tax = tax up to 5 lacs+ tax above 5 lacs

                        = 12500+19240= 31,740/-

Health & Higher Education cess = 31740*4%=1270/-

So at the end total tax payable during the Financial Year 2019-20 will be 31740+1270= ₹33,010

                       Now using the above example, we will calculate income tax for an Individual whose age is 60 Years( Senior Citizen) and an individual whose age is 80 Years( Super Senior Citizen).

As net taxable income comes out to be ₹ 5,96,200/-. So tax calculation on this amount:-

In the case of Senior Citizen

Up to Income 5 lacs:-

5,00,000-3,00,000(as there is no tax on ₹ 3,00,000/-)=2,00,000*5%

                                    tax up to 5 lacs= 10,000/-

Above 5 lacs:-

As rate of tax is 20% above ₹5,00,000/- in each case. So as calculated earlier tax above 5 lacs will be 19240/-  

Now total tax = tax up to 5 lacs+ tax above 5 lacs

                        = 10000+19240= 29,240/-

Health & Higher Education cess = 29240*4%=1170/-

So total tax payable during the Financial Year 2019-20 in case of Senior Citizen will be 31740+1170= ₹ 30,410/-        

In case of Super Senior Citizen

Up to Income 5 lacs:-

Income tax is nil for Super Senior Citizen who is 80 or more years old. So in this case income tax, up to ₹ 5 lacs is zero.

Above 5 lacs:-

As rate of tax is 20% above ₹5,00,000/- in each case. So as calculated earlier tax above 5 lacs will be 19240/-  

Now total tax = tax up to 5 lacs+ tax above 5 lacs

                        = 0+19240= 19,240/-

Health & Higher Education cess = 19240*4%=770/-

So total tax payable during the Financial Year 2019-20 in case of Super Senior Citizen will be 19270+770= ₹ 20,010/-.