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Business
14 Mar 2019

#FinancialBytes: Everything about income tax slabs and rates for individuals

All about income tax slabs for individuals

Income tax accounts for a major part of the government's revenue and salaried individuals form a significant chunk of the overall taxpayers in the country.

There are various income tax slabs specified by the government for different categories of taxpayers according to their level of income.

Here's all you need to know about the income tax slabs and rates for individuals.

In context

All about income tax slabs for individuals

What are income tax slabs?

Income tax slabs are predetermined tax rates on the basis of which the income of an individual is assessed. Tax rates for individuals are decided based on the slabs they fall under. Tax slabs give the threshold/limit beyond which certain tax rates are applicable.

Income tax slabs left unchanged for FY 2019-20

Details

Income tax slabs left unchanged for FY 2019-20

In the Interim Budget 2019, the Finance Minister left the income tax slabs and rates unchanged for FY 2019-20. However, it was also announced that individual taxpayers with an income of up to Rs. 5 lakh per annum would get a full tax rebate.

So, for FY 2019-20, the tax slabs for FY 2018-19 (AY 2019-20) would be applicable.

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Slabs, rates

Income tax slabs and tax rates for FY 2019-20

For FY 2019-20, any individual with an income of up to Rs. 2.5 lakh per annum is exempt from personal income tax.

However, those with an income between Rs. 2.5-5 lakh per annum need to pay 5% tax.

Income between Rs. 5-10 lakh/annum is taxed at 20%. An income higher than Rs. 10 lakh per annum attracts 30% tax.

Standard deduction for salaried individuals

This year, during the Interim Budget presentation, the Finance Minister had also hiked the standard deduction for salaried people by Rs. 10,000 from Rs. 40,000 to Rs. 50,000. However, there are no changes in other deductions.

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Most asked questions

What is Form 16?

Have TDS slabs on interest income, rental income been raised?

How to download Form 16?

Will I get Form 16 from my employer even if there is no TDS?

More questions

What is Form 16?

Asked on 14-03-2019 by Pari Pillai

Answered by NewsBytes

Form 16 is the TDS certificate issued by an employer. As per the Income Tax Act, when employers deduct TDS on salaries, they are required to issue a certificate in which details of the tax deducted and deposit is certified.

Have TDS slabs on interest income, rental income been raised?

Asked on 14-03-2019 by Hansika Mistry

Answered by NewsBytes

For the benefit of people, especially pensioners, during the Interim Budget 2019, TDS threshold on interest on bank/post-office deposits was proposed to be raised from Rs. 10,000 to Rs. 40,000. No tax would be deducted for interest income of up to Rs. 40,000. TDS slab for income through rent is proposed to be raised to Rs. 2.4 lakh from the existing Rs. 1.8 lakh.

How to download Form 16?

Asked on 14-03-2019 by Arjun Bose

Answered by NewsBytes

Your employer is responsible to provide Form 16 to you. In case you didn't get it, you can download it by using the following steps: visit the official website, and log in using your credentials. Now go to the 'download' tab and select the form 16 to download it.

Will I get Form 16 from my employer even if there is no TDS?

Asked on 14-03-2019 by Dhruv Malik

Answered by NewsBytes

Form 16 is a TDS certificate & it is issued only when there is tax deducted. Therefore, if there is no tax deducted, employer is not required to issue Form 16 to you. Purpose of form 16 is to serve as a proof of tax deducted & deposited on your behalf.

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