Attention taxpayers: Here's your new income tax slabs for FY2019-20
Updated : February 15, 2019 01:38 PM IST
If you are earning gross income of Rs 6.5 lakh per year and you have made investments of Rs 1.5 lakh allowed under 80C, your taxable income will be Rs 5 lakh. Up to Rs 2.5 lakh, you need not pay the tax.
In case your taxable income is Rs 10 lakh, your total tax would rise to Rs 1,17,000 i.e. nil for the first Rs 2.5 lakh, Rs 12,500 for the next Rs 2.5 lakh at a 5 percent rate, Rs 1,00,000 for the rest Rs 5 lakh at a rate of 20 percent, and lastly Rs 4,500 as cess at the rate of 0.4 percent on the last Rs 5 lakh.
The standard deduction has been increased to Rs 50,000 from Rs 40,000 currently. Also, TDS threshold on interest earned on bank/post office deposits is being raised from Rs 10,000 to Rs 40,000.