{"id":3978,"date":"2019-03-15T12:30:34","date_gmt":"2019-03-15T12:30:34","guid":{"rendered":"https:\/\/swaritadvisors.com\/learning\/?p=3978"},"modified":"2020-06-27T12:12:35","modified_gmt":"2020-06-27T06:42:35","slug":"tax-slab-rate-deductions-applicable-fy-2019-2020","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/learning\/tax-slab-rate-deductions-applicable-fy-2019-2020\/","title":{"rendered":"Tax Slab Rate &#038; Deductions Applicable For Individuals for FY 2019 \u2013 2020"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The central authorities of all countries follow a certain tax structure that helps the government to collect revenue. Therefore, every country has a <strong>unique Tax Slab Rate<\/strong>. Moreover, people, from all walks of life, fall under the tax structure whether <strong>earning NIL<\/strong> or in lakhs or more than that.<\/p>\n\n\n\n<p>If you are associated with a <strong>registered institute<\/strong> or have a business that offers more than a certain sum of money regularly, then you fall <strong>under the tax strategy<\/strong>. The declaration of the <strong>Interim Budget for the financial year 2019 \u2013 2020<\/strong> has been rather eventful for the entire nation. We will justify the same later in the blog. Before that, let\u2019s understand the <strong>Indian Tax System<\/strong>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a4a6257748\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a4a6257748\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/learning\/tax-slab-rate-deductions-applicable-fy-2019-2020\/#What_one_should_know_about_the_Indian_Tax_System\" title=\"What one should know about the Indian Tax System?&nbsp;\">What one should know about the Indian Tax System?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/learning\/tax-slab-rate-deductions-applicable-fy-2019-2020\/#Reasons_why_you_must_pay_Income_Tax\" title=\"Reasons why you must pay Income Tax&nbsp;\">Reasons why you must pay Income Tax&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/learning\/tax-slab-rate-deductions-applicable-fy-2019-2020\/#How_much_one_has_to_pay_as_per_the_new_tax_slab_rate\" title=\"How much one has to pay as per the new tax slab rate?&nbsp;\">How much one has to pay as per the new tax slab rate?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/learning\/tax-slab-rate-deductions-applicable-fy-2019-2020\/#How_much_surcharge_one_has_to_pay\" title=\"How much surcharge one has to pay?&nbsp;\">How much surcharge one has to pay?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/learning\/tax-slab-rate-deductions-applicable-fy-2019-2020\/#Deductions_Applicable_Under_the_Indian_Tax_System\" title=\"Deductions Applicable Under the Indian Tax System\">Deductions Applicable Under the Indian Tax System<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/learning\/tax-slab-rate-deductions-applicable-fy-2019-2020\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_one_should_know_about_the_Indian_Tax_System\"><\/span><strong>What one should know about the Indian Tax System?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Typically, the <strong>Indian Tax System<\/strong> has two sections, namely-<\/p>\n\n\n\n<ul><li>The direct tax, and<\/li><li>The indirect tax.<\/li><\/ul>\n\n\n\n<p>Both the central and state governments have the <strong>right to levy taxes<\/strong> on the <strong>general salaried<\/strong> people and business owners. Some of the taxes are kept under the <strong>control of the central government<\/strong> while others are included in the <strong>jurisdiction of the state<\/strong>. In some cases, the local authority will also charge a <strong>certain amount<\/strong> on the people.<\/p>\n\n\n\n<p>But one of the most popular taxes among the <strong>citizens is Income Tax<\/strong>. Needless to say, during the <strong>official financial budget<\/strong>, all <strong>salaried individuals<\/strong> and business owners have their eyes and ears glued to the television screen. Everybody seeks some <strong>relief from the income tax payment<\/strong>.<\/p>\n\n\n\n<p>This year too, the <strong>Finance Minister<\/strong> offered some good news for the common people. Before we delve into the tax slab rate and deductions, let us quickly check out the merits of tax payment.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><a href=\"https:\/\/swaritadvisors.com\/gst-registration\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" src=\"https:\/\/swaritadvisors.com\/learning\/wp-content\/uploads\/2019\/03\/gst-registration.jpg\" alt=\"GST Registration\" class=\"wp-image-4036\"\/><\/a><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Reasons_why_you_must_pay_Income_Tax\"><\/span><strong>Reasons why you must pay Income Tax&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The central government and <a href=\"https:\/\/en.wikipedia.org\/wiki\/Income_tax_in_India\"><\/a><a href=\"https:\/\/swaritadvisors.com\/learning\/category\/income-tax\"><\/a><a href=\"https:\/\/en.wikipedia.org\/wiki\/Income_tax_in_India\"><\/a><strong>Income Tax department<\/strong> <a href=\"https:\/\/en.wikipedia.org\/wiki\/Income_tax_in_India\">[1]<\/a>  has always stressed common people to pay taxes on time. After all, running a nation and offering much-needed facilities to the people is not an easy task. The major reasons why one must <strong>pay income tax<\/strong> are:<\/p>\n\n\n\n<ul><li>The money, collected from the taxes, is used by the authority in offering better facilities and amenities to the people.<\/li><li>From <strong>medical development to technological progress<\/strong>, everything comes to a standstill if there\u2019s a scarcity of funds in the government coffers.<\/li><li>By <strong>paying taxes<\/strong>, you contribute directly towards the overall development of the nation and <strong>fulfill your social responsibilities<\/strong> as well.<\/li><li>The government also uses the money to establish industries and attract foreign investment.<\/li><li>Paying taxes will also give you the <strong>opportunity to earn tax returns<\/strong>.<\/li><\/ul>\n\n\n\n<p>Furthermore, showing fraud income details is completely illegal. Therefore, the government has taken several steps to curb the <strong>growth and spread<\/strong> of <strong>black money in the nation<\/strong>. Thus, every <strong>legal resident<\/strong>, who falls under the <strong>tax structure<\/strong>, must <strong>pay their taxes in the prescribed time<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_much_one_has_to_pay_as_per_the_new_tax_slab_rate\"><\/span><strong>How much one has to pay as per the new tax slab rate?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are <strong>various tax payment slabs in India<\/strong>. The figure depends on the <strong>annual income of the person<\/strong> and the age. Apart from this, they are also <strong>required to pay a surcharge<\/strong>. As per the <strong>new tax amendment rules<\/strong>, a <strong>salaried person<\/strong> will have to pay taxes as mentioned in the table below:<\/p>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><strong>Income particulars<\/strong><\/td><td><strong>Age of the individual (less than 60 years)<\/strong><\/td><td><strong>Age of the individual (more than 60 years)<\/strong><\/td><td><strong>Age of the individual (more than 80 years)<\/strong><\/td><td><strong>Education and Health Cess<\/strong><\/td><\/tr><tr><td>Within Rs. 2.5 lakhs<\/td><td>No Tax<\/td><td>No Tax<\/td><td>No Tax<\/td><td>4% of the tax amount<\/td><\/tr><tr><td>From Rs. 2.5 lakhs to Rs. 3 lakhs<\/td><td>5% Tax only<\/td><td>No Tax<\/td><td>No Tax<\/td><td>4% of the tax amount<\/td><\/tr><tr><td>From Rs. 3 lakhs to Rs. 5 lakhs<\/td><td>5% Tax only<\/td><td>5% Tax only<\/td><td>No Tax<\/td><td>4% of the tax amount<\/td><\/tr><tr><td>From Rs. 5 lakhs to Rs. 10 lakhs<\/td><td>20% Tax only<\/td><td>20% Tax only<\/td><td>20% Tax only<\/td><td>4% of the tax amount<\/td><\/tr><tr><td>More than Rs. 10 lakhs<\/td><td>30% Tax only<\/td><td>30% Tax only<\/td><td>30% Tax only<\/td><td>4% of the tax amount<\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_much_surcharge_one_has_to_pay\"><\/span><strong>How much surcharge one has to pay?&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<table class=\"wp-block-table\"><tbody><tr><td><strong>Surcharge Rate<\/strong><\/td><td><strong>Income between Rs. 50 lacks to Rs. 1 crore<\/strong><\/td><td><strong>Income of more than Rs. 1 crore<\/strong><\/td><\/tr><tr><td>For individuals<\/td><td>10%<\/td><td>15%<\/td><\/tr><\/tbody><\/table>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Deductions_Applicable_Under_the_Indian_Tax_System\"><\/span><strong>Deductions Applicable Under the Indian Tax System<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ol><li><strong>Standard deduction<\/strong> \u2013 During the <strong>Budget 2019\u20132020 announcement<\/strong>, the <strong>Finance Minister<\/strong> said that the salaried people will be able to save more as the earlier standard deduction limit has been raised now. The limit, which was <strong>Rs. 40000<\/strong> till date has now been increased to <strong>Rs. 50000<\/strong>.<\/li><li><strong>Increased TDS threshold<\/strong> \u2013 The earlier maximum <strong>TDS deduction<\/strong> amount was <strong>Rs. 10000.<\/strong> From the <strong>financial year 2019\u20132020<\/strong>, this limit has been increased to <strong>Rs. 40000<\/strong>.<\/li><li><strong>LTA (Leave Travel Allowance) deduction<\/strong> \u2013 LTA is an additional tax deduction facility received by most of the people getting a fixed salary from the government or private offices. This deduction will be offered for domestic travels. Only two such trips, organized in a span of four <strong>financial years<\/strong> will be counted as valid. The deduction will be done on the commutation only. Applicants must avail any form of public transport to get the benefit.<\/li><li><strong>Deductions under 80C, 80CCC and 80CC(D) 1<\/strong> \u2013 Life insurance policy purchases, <strong>investment in PPF, EPF<\/strong> and pension programs, wards tuition fee, contribution in government policies and host of other things come under the <strong>Sections 80C, 80CCC and 80CC(D)<\/strong> 1. Applicants are entitled to attain a tax deduction that will be restricted within <strong>Rs. 1.5 lakh<\/strong> mark from these aspects.<\/li><li><strong>Deduction on medical insurance<\/strong> \u2013 Under <strong>Section 80D<\/strong>, applicants will attain the benefit of tax deduction on medical insurance policies. If they purchase such a health cover policy for the family or parents who fall in the senior citizen category, then they can attain tax deductions. Earlier, this was <strong>limited to Rs. 30000<\/strong>, but now the threshold has been increased to <strong>Rs. 50000<\/strong> on a yearly basis.<\/li><li><strong>Higher education loan deduction<\/strong> \u2013 Education has become an expensive commodity. Many students opt for higher education and to pay the fee, they often resort to taking loans. If a person has taken such a <strong>loan for higher education<\/strong> and paying the interests, then he\/she may acquire a <strong>deduction under Section 80E<\/strong>.<\/li><li><strong>Donation deduction<\/strong> \u2013 It has been mentioned in <strong>Section 80G<\/strong> that a citizen can donate any amount towards a noble cause. The tax department will gather information about these donations and the organizations, which received the money. Depending on these details, the authority will r<strong>eward either 50% or 100% tax deduction<\/strong>.<\/li><li><strong>Additional deduction on a home loan<\/strong> \u2013 Under the special <strong>Section 80EE, the tax department<\/strong> allows all house owners to apply for an additional <strong>tax deduction<\/strong>. If they have acquired any home loan for the construction, and are paying the interest, then such applicants will attain a deduction that will not cross the mark of <strong>Rs. 50,000<\/strong> annually. This perks will not be available if the total valuation of the property exceeds <strong>Rs 50, 00,000<\/strong>. Under <strong>Sections 80C and 24<\/strong>, any applicant will attain tax deduction of as much as <strong>Rs. 2 lakhs<\/strong>, if he is purchasing a home with <strong>credit from any bank<\/strong>. The perks will remain valid in case the applicant intends to move in the home. In case the property is used for rent, then the perk will be withheld by the authority.<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>There are many people who feel that they can go scot-free even if they do not pay the taxes. It is a major misconception. The <strong>central government<\/strong> and the <strong>tax departments<\/strong> keep records meticulously. Any attempts to put dust in the eyes of the tax department will be in vain. The defaulters will <strong>get official notice<\/strong>, urging them to clear all due taxes. In case they do not pay heed to these warnings, the central authority has the provision to take legal action against such offenders.<\/p>\n\n\n\n<p>In case, you are feeling any trouble while <strong><a href=\"https:\/\/swaritadvisors.com\/income-tax-return-filing\">filing the income tax return<\/a><\/strong> or have any query regarding the tax slab rate, then contact Swarit Advisors.<\/p>\n\n\n\n<p class=\"text-left\"><b>Also, Read<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/learning\/gst-reverse-charge-know-all-the-new-aspects-under-gst\/\">GST Reverse Charge \u2013 Know all the New Aspects under GST<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The central authorities of all countries follow a certain tax structure that helps the government to collect revenue. Therefore, every country has a unique Tax Slab Rate. Moreover, people, from all walks of life, fall under the tax structure whether earning NIL or in lakhs or more than that. If you are associated with a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3983,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[416],"tags":[4,419,687],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3978"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/comments?post=3978"}],"version-history":[{"count":9,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3978\/revisions"}],"predecessor-version":[{"id":11314,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/posts\/3978\/revisions\/11314"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media\/3983"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/media?parent=3978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/categories?post=3978"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/learning\/wp-json\/wp\/v2\/tags?post=3978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}