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How To Calculate Income tax 2019-20

Calculate Income Tax

How To Calculate Income Tax FY 2019-20

In this article you will learn How to calculate Income tax for AY 2019-20.According to budget 2019,there will be no tax ,if total income is up to 5 lakhs.

Total Income Vs Gross Income

The income you earn from all sources in a financial year is called gross income .

And income after deducting all savings from gross income is called total income.

e.g. suppose income from all sources you get in FY 2019-20 is 10 lakhs,that is known as gross income.

Similarly,suppose your savings from 80C-80U are 2 lakhs,then total income will be as under:

Gross income(10 lakhs) – standard deducion (₹ 50000)- deductions 80C-80U(₹ 200,000).

That is,10,00,000-250,000 = 7,50,000 will be Total Income.

Calculation Of Income Tax For Govt. Employees FY 2019-20

Let us suppose is that your income from all sources is is 700000 and your from sections 80C to 80U are 150,000.

So your tax liability for further 2019-20 is 700,000-50,000-150,000 = 500,000.

As per income tax slab rates for fy 2019-20, ₹ 0-250,000 no tax. 250,000-500,000 @5%.

So your taxable amount is 12,500.

Now,as your total income is ₹ 500,000,hence you will get rebate of ₹ 12,500 under section 87A.

Hence your tax liabilty is 12,500-12,500 = ₹ 0.

How to Calculate Income Tax For Senior Citizens FY 2019-20

Suppose you are super senior citizen having age 60 years or above and less than   80 yrs.

And you get 8 lakhs pension in FY 2019-20.

Also assume,your total savings are ₹ 150,000.

So as per income Slab rates for FY 2019-20 for senior citizens below 80 years,your tax liability is as under:

8,00,000-50,000-150,000 = 6 lakhs.

Hence 0-3,00,000 = nil tax, 3,00,001- 5,00,000 = @5% (₹ 10,000) & remaining 1,00,000 will be taxable @20% = ₹ 20,000

So finally your tax liability is ₹10,000+ 20,000 = ₹30,000.

Health education cess of ₹ 30,000 @ 4% is ₹ 1200.

So finally your total tax liability is ₹ 31,200

 Calculate Income Tax For Super Senior Citizens FY 2019-20

Let us assume, you are super  senior citizen having age above  80 yrs.

And you get 8 lakhs pension in FY 2019-20.

Also assume,your total savings are ₹ 150,000.

So as per income Slab rates for FY 2019-20 for super senior citizens above 80 years,your tax liability is as under:

8,00,000-50,000-150,000 = 6 lakhs.

Hence 0-5,00,000 = nil tax, remaining 1,00,000 will be taxable @20% = ₹ 20,000

So finally your tax liability is ₹ 20,000 .

Health education cess of ₹ 20,000 @ 4% is ₹ 800.

So finally your total tax liability is ₹ 20,800.

Tabular Overview Of Tax Slab Rates

 

 For Salaried Employees Age <60

Serial numberTotal Income(in rupees)Tax Rate
10-250,000Nill
2250,001-5,00,000@5%
35,00,001-10,00,000@20%
4>10,00,000@30%

For Senior Citizens Age >=60 & <80

Serial numberTotal Income (in rs.)Slab rates
10-3,00,000Nil
23,00,001-5,00,000@5%
35,00,001-10,00,000@10%
4Above 10,00,000@30%
By mysmartkey.in

For Super Senior Citizens Age >=80

Serial numberTotal IncomeTax rate
10-5,00,000Nil
25,00,001-10,00,000@20%
3Above 10,00,000@30%
by mysmartkey

Note: Health and education cess @4% is applicable on  above categories on Income tax.

Also if total income is more than 50,00,000 then ,surcharge  @10% on taxable amount .

Besides,if total income exceeds 1 crore then,15% surcharge is applicable.

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

Click Here to Leave a Comment Below 1 comments
Gopalakrishnan - February 16, 2020

Useful information.Thanks

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