What is the income tax slab for the financial year 2019 20?
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What is the income tax slab for the financial year 2019 20?
Income Tax Slab in India 2019-20
| Taxable income | Tax Rate (Existing Scheme) | Tax Rate (New Scheme) |
|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5\% | 5\% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20\% | 10\% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20\% | 15\% |
Is 87A applicable in new tax regime?
Yes. The rebate benefits u/s 87A are the same for all individuals and ages who are Indian residents under both the new and old tax regimes. The interim budget of 2019-20 announced a full rebate of tax under section 87A for individuals with taxable income less than Rs 5 lakh of up to Rs 12,500 u/s 87A.
Which tax regime is better old or new for salaried employees?
Since salaried have to forgo various benefits like standard deduction, HRA, LTA and there would be many mandatory items like employee provident fund contribution, life insurance premium, school fee, home loan principal repayment, it will make sense for most of the salaried to stay with old regime.
What is tax slab for current year?
Income tax slabs for Individual aged below 60 years & HUF
| Income Tax Slab | Individuals Below The Age Of 60 Years – Income Tax Slabs |
|---|---|
| Up to Rs 2.5 lakhs | NIL |
| Rs. 2.5 lakh -Rs. 5Lakhs | 5\% |
| Rs 5 .00 lakh – Rs 10 lakhs | 20\% |
| > Rs 10.00 lakh | 30\% |
Who is eligible for rebate u/s 87A?
You can claim the benefit of rebate under section 87A for FY 2020-21, and FY 2019-20, subject to the following conditions are satisfied: You are a resident individual. Your total income after reducing the deductions under Chapter VI-A (Section 80C, 80D and so on) does not exceed Rs 5 lakh in an FY.
Is HRA included in new tax regime?
Although it is a part of your salary, HRA, unlike basic salary, is not fully taxable. Thus, if you opt for the new income tax regime either in FY 2020-21 or FY 2021-22, then you will not be able to claim tax-exemption on HRA.
Can I switch from new tax regime to old tax regime?
However, the law provides such taxpayers’ one single option of switching back to the old tax regime should their circumstances change. This switch-back option is available only once in a lifetime unless the taxpayer ceases to have any income from a business or profession.
What income is exempt from tax?
For example, for the 2020 tax year (2021), if you’re single, under the age of 65, and your yearly income is less than $12,400, you’re exempt from paying taxes. Ditto if you’re married and filing jointly, with both spouses under 65, and income less than $24,800.