No changes made in Income Tax Slabs and Rates for FY 2019-20 / AY 2020-21
·Income Tax exemption limit remains Rs. 2.5 lakh for all Citizens below 60 years.
·Income Tax exemption limit remains Rs. 3 lakh for Senior Citizens (60 years or above).
·Income Tax exemption limit remains Rs. 5 lakh for Very Senior Citizens (80 years or above).
means Income Tax Return filing is mandatory if your Total Income is
above 2.5 lakh (3 lakh for senior citizens and 5 lakh for very senior
No tax is payable if Total Income up to Rs. 5 lakh for the F.Y. 2019-20
The Conditions are,
·The Taxpayer should be a Resident Individual.
·Total Income should be less than 5lakh after considering the Deductions under Chapter VIA.
both conditions are satisfied, then the taxpayer will get Tax Rebate up
to Rs. 12,500/- u/s 87A (earlier Rs. 2500 up to total income Rs. 3.5
lakh. Explanation: Suppose a taxpayer’s Total Income = 500,000 Exemption = 250,000 Total Income after exemption = 250,000
Tax @ 5% on Total Income = 12,500 Rebate u/s 87A = 12,500 Tax Payable = 0
means, if the taxpayer’s total income is 5 lakh or below 5 lakh, then
he will get tax rebate u/s 87A. So, no tax is payable. But obviously, he
needs to file an income tax return if his Total Income is above 2.5
lakh (3 lakh for senior citizens and 5 lakh for very senior citizens).
If the taxpayer’s total income exceeds 5 lakh, he does not get tax rebate u/s 87A. He needs to pay tax according to slab rates.