Income tax payment for individual and corporate entities is an obligatory requirement according to the Income Tax Act, 1961 if their yearly is above the minimum exclusion limit. The Act, therefore, separates, pay ranges at various rates according to segregation. These groups are subsequently known as tax slabs.
The slabs also change as per the age if the taxpayer is the individual according to the classification of the entities. During the budget session, the tax slabs amendments are revised each year once the Parliament and implements propose the amendments as the law.
Personal Tax Slabs for Citizens of India
- The individual residents of India's basic exemption limit is chosen depending on his/her pay. There are three classes of individual citizens that are categorized as:
- Individuals whose age lies between 60 which includes both residents and non-residents of India.
- Residents seniors age above 60 and below 80.
- Residents senior within age above 80.
Income Tax Amendments in FY 2019-2020
In the budget speech of the financial year 2019-2020, the finance minister acknowledged certain revisions to the Income Tax Amendments in FY-2019-20
Here are a couple of revisions declared in the Budget Session:
- A yearly pay up to Rs. 5 Lacs for occupant people excluded from the income tax charges.
- For people yearly, income between Rs. 2 Crore to Rs. 5 Crore, the extra charge has been expanded to 25%. The extra charge had additionally been expanded to 37% for people with a yearly pay above Rs. 5 Crore.
- Yearly turnover of up to Rs. 400 crore brought under corporate income tax slab of 25%
- TDS at the rate of 2% chargeable for money withdrawals above Rs. 1 crore in a year.
Income Tax Slabs for Other Entities
Now, take a look at the Income-tax slabs to apply for other entities
For domestic company, charges of the tax depend on their annual turnover it is earned in the previous year
According to a declaration in the latest budget session, the presentation of the income tax slab takes the new gross turnover breaking point of rupees 400 for the purpose. Additionally, an overcharge at the rate of 7% is applicable if the pay of a domestic company is between 1 Crore to 10 Crore. For income above 10 crore, additional tax charges of 10% will get applied.
A health and education cess of 4% is additionally collected on the expenses determined.
Partnership firm LLP
For partnership firm LLP, there are no variables of income tax slabs as the total income is taxable at the rate of 30% supercharge levied on firm falls under the two categories mentioned below.
- 7% of expense is determined if the absolute pay is between Rs. 1 Crore and Rs. 10 Crore.
- 12% of expenses are determined for absolute pay above Rs. 10 crores.
We hope now you understand the income tax slabs 2091-2020. Share your thoughts whether this revision tax amendment is good for the citizens or not.
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