Income Tax Slab Rates For Senior Citizens FY 2019-20 AY 2020-21

Income Tax Slab Rates For Senior Citizens fy 2019-20

Income Tax Slab Rates For Senior Citizens FY 2019-20

Income tax slab rates for senior citizens for fy 2019-20 has remained unchanged.

Before we calculate income tax for senior citizens,let us have a quick look at key features of union budget 2019.

7 new changes in budget 2019 you must know

There are some changes in union budget 2019.

Let us know them:

  • Standard deduction increased from rs. 40,000 to rs. 50,000.
  • Income tax rebate u/s 87A increased from rs. 2500 to rs. 12,500.
  • TDS limit increases from rs. 10,000 to rs. 40,000.

How to calculate income tax for senior citizens having age 60 yrs to less than 80 years

Suppose your gross pension for fy 2019-20 is 7 lakhs.

So deduct rs 50,000 as standard deduction from 7 lakhs.

Thus 7,00,000-50,000=650,000

So again suppose your tax saving from 80C to 80U are 150,000

Hence 650,000-150,000= 5,00,000.

So your total taxable income becomes 5 lakhs.

Now for senior citizens having attained age of 60 yrs or more than 60 and less than 80 yrs.

0-300,000 = nil tax.

300,001-500,000 = @5%

500,001- 10,00,[email protected]%

Now in this example we have total taxable income is 5 lakhs.

So 0-300,000= rs. 0 tax

Remaining 300,001-500,000 = @5%= rs. 10,000.

Hence your tax liability becomes rs. 10,000.

Now under section 87A,income tax rebate of rs. 12,500 is applicable.

Because in Budget 2019,if your total income,after 80C-80U deductions is 5 lakhs.

So in this case you get  rs. 10,000  full tax rebate.

calculate income tax for senior citizens having age  80 years and above

Assume that your gross pension for fy 2019-20 is 10 lakhs.

So deduct rs 50,000 as standard deduction from 10 lakhs.

And 10,00,000-50,000=9,50,000

So again suppose your tax saving from 80C to 80U are 150,000

Hence 950,000-150,000= 8,00,000.

So your total taxable income becomes 8 lakhs.

Now for senior citizens having attained age  80 yrs. & above,

0-500,000 = nil tax.

500,001-100,000 = @20%

1000,001 & [email protected]%

Now in this example we have total taxable income is 8 lakhs.

So 0-500,000= rs. 0 tax

Remaining 500,001-800,000 = @5%= rs. 60,000.

Hence your tax liability becomes rs. 60,000.

Now under section 87A,income tax rebate of rs. 12,500 is  not applicable to you.

As in Budget 2019,if your total income,after 80C-80U deductions is 5 lakhs,only then you can get rs. 12500 tax rebate.

So in this case you don’t get  rs. 12,500  full tax rebate.

Ultimately your taxable amount is rs.

60,000.

Further 4% health and education cess of 60,000 = 2400.

And finally 60,000+2400=62,400.

And finally your total tax for FY 2019-20 is rs.62,400.

Final words

In the last,it is clear that if your total income (after all deductions from 80C-80U ) is rs. 5 lakhs,only then you can get income tax benefit.

Otherwise there is no change in income tax slab rates for FY 2019-20

 

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Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

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