Income Tax Rate for Individuals - AY 2019-20

Individuals are required to file an income tax return each year if they have taxable income of more than Rs.2.5 lakhs. The income tax rate AY 2019-20 or FY 2018-19 for salaried individuals is as follows.

Note: Financial year starts from 1st April and ends on 31st March. For example, the financial year 2018 - 19 would be 1st April 2018 to 31st March 2019. Assessment year is the year immediately following the financial year wherein the income of the financial year is assessed. Hence, in the assessment year 2019 - 20 the income tax for the period from 1st April 2018 to 31st March 2019 would be assessed.

Latest Update on 26th June 2019

As per the latest notification from the Income Tax Department, taxpayers are advised to take a note of the below:

Consequent to changes made in Income Tax Return Preparation Software and Schema for AY 2019-20, Please note the below: 1. Already saved draft data will not be available in case of Online ITR 1 & 4 2. In case of Offline utilities, XML has to be re-generated using the latest Income Tax Return Preparation Software.

Income Tax Rate AY 2019-20 | FY 2018-19 - Individuals less than 60 years

Taxable income	Tax Rate
Up to Rs. 2,50,000	Nil
Rs. 2,50,000 to Rs. 5,00,000	5 %
Rs. 5,00,000 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Income Tax Rate AY 2019-20 | FY 2018-19 - Individuals betwen 60 years and 80 years

Taxable income	Tax Rate
Up to Rs. 3,00,000	Nil
Rs. 3,00,000 to Rs. 5,00,000	5%
Rs. 5,00,000 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

Income Tax Rate AY 2019-20 | FY 2018-19 - Individuals above 80 years

Taxable income	Tax Rate
Up to Rs. 5,00,000	Nil
Rs. 5,00,000 - Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

In addition to the Income Tax amount calculated, based on the above-mentioned tax slabs, individuals are required to pay Surcharge and Cess.

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Health & Education Cess: 4% of Income Tax. (Newly introduced through 2018 Budget)

Why Should Individuals File Income Tax Return?

Under the

Income Tax Act, all individuals below the age of 60 years are required to file income tax return if total income exceeds Rs. 2.5 lakhs. In the case of individuals over the age of 60 years, but below 80 years, income tax filing is mandatory if total income exceeds Rs.3 lakhs. Individuals over the age of 80 years are required to file income tax return if the total income exceeds Rs.5 lakhs.

Penalty for Not Filing Income Tax Return

Not filing your Income Tax Return would result in :

Receiving a notice from Income Tax department
Not being able to obtain refund of excess TDS Deducted.
Penalty interest of 1% per month or part thereof will be charged until the date of payment of taxes. For returns of FY 2017-18 and onwards, penalty of Rs 5,000 will be charged for returns filed after due date but before 31st December. If returns are filed after 31st December, a penalty of Rs 10,000 shall apply. However, penalty will be Rs 1,000 for those with income upto Rs 5 Lakhs.
Not being able to set off Losses. Losses incurred (other than house property loss) will not be allowed to be carried forward to subsequent years, to be set off against the future gains.

Knom more about penalty for late filing income tax returns.

Due Date for Filing Income Tax Return for Salaried Individuals

The income tax return of a salaried individual is due on 31st July.

Which ITR Form should a salaried individual use?

Salaried Individuals may have to file ITR-1 or ITR-2 based on certain criteria as detailed below :

Form ITR-1

Form ITR-1 must be used when the source of income is limited to Salary/Pension, One House Property and other sources (Excluding winning from lottery and race horses). Form ITR-1 should not be filed for below cases :

Income that exceeds Rs. 50 Lakhs
Assessee has Taxable Capital Gains
Assessee has any of the below sources of income :
- Income from foreign assets
- Agricultural income that exceeds Rs. 5000
- Income from Business or Profession
- Income from more than one house property

Form ITR-2

Form ITR-2 must be filed by individuals who are not eligible to file ITR-1, because of following reasons :

Income exceeding Rs. 50 Lakhs
Having foreign assets / income
Having agricultural income which is more than Rs. 5,000
Having taxable capital gains
Having income from business or profession as a partner
Having more than one house property

Form ITR-2 should not be filed by any individual who has income under the head of Business or Profession from a proprietorship. ITR-2 form can also not be filed by a company or LLP or other types of legal entity.

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Frequently Asked Questions

Common questions about Income Tax Rates AY 2019.

The income tax rate for individuals under 60 years of age with a taxable income between Rs. 2,50,000 and Rs. 5,00,000 for the assessment year 2019-20 is 5%.

Individuals between 60 and 80 years of age start paying income tax for the assessment year 2019-20 if their taxable income exceeds Rs. 3,00,000. Taxable income up to Rs. 3,00,000 is exempt from income tax for this age group.

Yes, in addition to the income tax calculated based on the tax slabs, individuals are required to pay a surcharge and a Health & Education Cess. The surcharge is 10% of the income tax if the total income exceeds Rs. 50 lakh but is less than Rs. 1 crore, and 15% if the total income exceeds Rs. 1 crore. The Health & Education Cess is 4% of the income tax.

The due date for filing income tax returns for salaried individuals is 31st July of the assessment year.

Salaried individuals may have to file either ITR-1 or ITR-2, depending on their sources of income. ITR-1 can be used if the income is limited to salary/pension, one house property, and other sources, excluding lottery winnings and income from race horses. ITR-2 must be filed if the individual has income exceeding Rs. 50 lakhs, foreign assets/income, agricultural income above Rs. 5,000, taxable capital gains, income from business or profession as a partner, or more than one house property.

If an individual fails to file their income tax return, they may face consequences such as receiving a notice from the Income Tax department, not being able to obtain refunds of excess TDS deducted, penalty interest of 1% per month or part thereof until the date of payment of taxes, and not being able to set off losses.

Yes, individuals below the age of 60 years are required to file income tax returns if their total income exceeds Rs. 2.5 lakhs. For individuals between 60 and 80 years of age, the threshold is Rs. 3 lakhs, and for those above 80 years, the threshold is Rs. 5 lakhs.

Yes, the income tax rate for individuals above 80 years of age for the assessment year 2019-20 is different from the other age groups. Taxable income up to Rs. 5,00,000 is exempt from income tax, and the rate is 20% for taxable income between Rs. 5,00,000 and Rs. 10,00,000. Income above Rs. 10,00,000 is taxed at 30%.

If the income tax return is filed after the due date but before 31st December, a penalty of Rs. 5,000 will be charged. If it is filed after 31st December, the penalty increases to Rs. 10,000. However, for individuals with an income of up to Rs. 5 lakhs, the penalty is Rs. 1,000 for late filing.

No, if an individual does not file their income tax return, losses incurred (other than house property loss) will not be allowed to be carried forward to subsequent years to be set off against future gains.