New Tax slabs applicable for the Financial Year 2019-20

Ordinary citizen Senior citizen

(Male & Female) (Above 60 yrs)
Slabs (Total Net income) Tax Rate Slabs (Total Net income) Tax Rate
Up to Rs 2.5 lakh Nil Up to Rs 3 lakh Nil

Rs 2,50,001 to Rs 5,00,000 5% of (Total income minus Rs 2,50,000) + 4% cess Rs 3,00,001 to Rs 5,00,000 5% of (Total income minus Rs 3,00,000) + 4% cess

Rs 5,00,001 to Rs 10,00,000 20% of (Total income minus Rs 5,00,000) + 4% cess + Rs 12,500 Rs 5,00,001 to Rs 10,00,000 20% of (Total income minus Rs 5,00,000) + 4% cess + Rs 10,000

Rs 10,00,001 and above 30% of (Total income minus Rs 10,00,000) + 4% cess + Rs 1,12,500 Rs 10,00,001 and above 30% of (Total income minus Rs 10,00,000) + 4% cess+Rs 1,10,000

Surcharges to be levied for FY 2019-20

Taxable Income Rate Marginal Relief Surcharge
Income above Rs 50 lakh but below Rs 1 crore 10% 50Lakh to 51.95lakh (Surcharge Only 1.95lakh*70%)

Income above Rs 1 crore but below Rs 2 crore 15% 1 Crore to 1.021 Crore (Surcharge Only 2.10lakh*70%)

Income above Rs 2 crore but below 5 crore 25%

Post Budget July-19 Changes rate 15 % to 25%
Income above Rs 5 crore 37%

Post Budget - 2019-20

Taxable Income
Upto 5 lakh
Above 5 lakh upto 10 lakh
Above 10 lakh upto 50 lakh
Above 50 lakh upto 1 Crore
Above 1 Crore upto 2 Crore
Above 2 Crore upto 5 Crore
Above 5 Crore
Total Rate
0%
(Total income minus Rs 5,00,000)*20.80 % + 12500
(Total income minus Rs 10,00,000)*31.20% + 112500
(Total income minus Rs 10,00,000)*34.32%+ 112500
(Total income minus Rs 10,00,000)*35.88%+ 112500
(Total income minus Rs 10,00,000)*39%+ 112500
(Total income minus Rs 10,00,000)*42.74% + 112500

Tax Saving Avenues:

A) Section 80-C B. Mediclaim (Section 80D) E) Education loan repayment (Sec-80E)
Life Insurance Premiums & NSC For self, spouse and children-25,000/- Interest paid on education loan is totally exempted with no upper limit.
Public Provident Fund For dependant parents - 25,000/-
Tax saving mutual funds (ELSS) For dependant parents (Sr. Citizen) - 50,000/-
Principal portion of Home loan Allowances-Exemption
Tax saving fixed deposits C) Home Loan Interest (Section 24-B) LTA (Current block is 2018-21) :
Post office time deposits Pension plans of insurance firms (Sec-80 CCC) Exemption allowed is Rs.200000 (Max) Once in a block of 2 yrs; only travel bills of Domestic tour;
Children’s School Fees supporting bills must. (Eligible amount is one month basic salary)
Note: Combined limit of exemption allowed under Sec-80C &80-CCC is Rs. 1.50 lakh (including self-contribution to
ProvidentFund)
D) HRA Deduction
National Pension Scheme (NPS) Section 80CCD: - Maximum Exemption Rs. 50,000/- HRA deduction is minimum of the following:
a) Actual HRA received
b) Actual Rent paid
c) Rent paid in excess of 10% of Basic Salary