Direct Taxes

Know Your Taxes
Income Tax Slabs FY19-20

Health and
Tax Slabs Tax Rate
Education Cess
Up to ₹2,50,000* Nil Nil

5% of total income exceeding ₹2,50,000.
₹2,50,001 to ₹5,00,000 Rebate of Rs 12,500 allowed from FY 19-20 under 4%
section 87 A of Income tax Act
₹5,00,001 to ₹10,00,000 ₹12,500 + 20% of total income exceeding ₹5,00,000 4%
₹1,12,500 + 30% of total income exceeding 4%

Above ₹10,00,000
₹10,00,000
Gross Income includes :

 Income from Salary
 Income from House /Property
 Capital Gains
 Income from Business/Profession
 Income from other sources
Taxable Income = Gross Income – Deduction under Chapter VI A of Income tax Act,1961
Tax Saving Avenues to Consider
Category Condition Tax Benefit Limits
80C Deductions Investment in Rs. 1,50,000
 PPF,
 NSC,
 Employee’s contribution to EPF,
 LIC premium,
Category  School tuition fees
Condition Tax BenefitLimit
 ELSS MF,
 Employee’s contribution to NPS subject to
maximum of 10% ( Salary +DA)
Medical Medical Insurance: Self, spouse, dependent Maximum Rs 25,000
Insurance(80D) children
Medical Insurance: Parents < =60 years old Maximum Rs 25,000
Maximum Rs 50,000
Parents > 60 years old
Interest Income ( Savings account (not applicable on Maximum up to Rs.

8TTA &80 TTB) interest income from fixed deposits, RD 10,000
and corporate bonds)
For senior citizens from post office and
banks Maximum up to Rs.
50,000
Category Condition Tax Benefit Limits
Tax benefit on Tax benefit on Education Loan (80E) Interest for period of 8
Education Loan years
(80E)
Medical On Self and dependent relative as reduced For Senior Citizens : Rs

Expenditure ( by amount of medical insurance claimed 1,00,000
80DDB) For other : Rs 40,000
NPS tax benefit

(80CCD ) Employee Additional contribution to NPS Rs 50,000
Standard Flat deduction from the employee’s salary Rs 40,000 . Revised to

Deduction Rs 50,000 in current
interim budget
Category Condition Max.Tax Benefit Limits
HRA Monthly Rent (Landlord’s PAN required if Least of following:

total rent paid exceeds 1 lakh in F.Y) Actual HRA received or
40% of [basic salary + DA]
or
Actual rent paid less 10% of
basic salary + DA
Home Loan Tax Post construction /purchase interest period Rs 2 lacs for self occupied
benefit
In Five Equal Installments
Pre-Construction Interest from FY in which const.
completes
Leave Travel 2 Domestic Journey in block of 4 calendar By Air : Economy Fare
Concession year . By Rail : AC First Class Fare
However if Journey not performed in any By Road:
block, then only one journey can be carry If Connected by Rail: AC
forward to next block and can be claimed in First class Fare
first calendar year of next block only If not connected by Rail:
Deluxe Fareo/ First class
Fare
Comparative Analysis of Tax Saving Investments –
Section 80C- Max Cap Rs 1.5 lacs
Product Deduction on Interest/Dividend Withdrawals Lock In Period
Investment
PPF Exempt Exempt Exempt 15 Years
Employee Exempt upto12% of Exempt upto 9.5% Withdrawal prior to 5 5 Years

Cont. to EPF (Basic+DA) years is taxable
Employee Exempt upto10% of Exempt Exempt Till Age of 60 Years

Cont. to NPS (Basic+DA)
Tax Saving Exempt Taxable Exempt 5 Years

Bank FD
NSC Exempt Taxable but considered Exempt 5 Years

for deduction under 80
C
ELSS Exempt Dividend Distribution Gain after 31sT March 3 Years

tax paid by companies exceeding Rs 1 lacs is
taxable @10%
Professional Tax and Important Deadlines
Professional tax Implemented in Punjab in Apr’18 @ Rs 200 per month for all
Employees who are assessable under Head Income from Salary/Wages and
their taxable Income exceeds
 Rs 2.90 lac for FY 18-19
 Rs 3 lacs for FY 19-20
st st ST ST st
On Joining 31 May’19 31 Jan’20 31 Mar’20 31 May’20 31 Jul’20
Submit Form 12B Submit Submit Make Form No . 16 File your

declaring Investment Investment investment to be issued by Income
 Income from Declaration Proof with to claim PSeGS tax return
Previous Employer in Form No PSeGS TDS refund
 TAX Deduction 12BB to if you fail to
 PF Deduction PSeGS submit
 Professional Tax investment
Deduction proof by
st
31 Jan’20
Let’s find answers to some common questions on
tax saving
1. Can I claim HRA, if I am staying in my dad’s house?
• Yes, you can claim HRA, condition is that you enter it into the rental agreement with your father and pay the rent. In this case,
the rent will becomeyour father’s taxable income.
2. I bought a house on loan in this financial year. How do I claim tax benefit?
• You can claim tax benefit on the interest paid on homeloan and also on principal repaid.
3. My employer won’t accept investment proof for FY 18-19 after February, 2019. Will I get tax benefit If I invest in tax saving
instrument in March, 2019?
• The amount that you invest at any time in the financial year is eligible for tax benefit. For example, in your case if you invest in
ELSS mutual fund even if in the last week of March, 2019, you can avail yourself of the benefit under 80C. This investment will
reduce your tax liability for FY 18-19, irrespective of whether you have submitted the proof to your employer or not. You can do
so by claiming this benefit while filing yourreturn of incomefor FY2018-19.
4. Most of the tax saving investments that I have heard like PPF, NSC have minimum 5 years lock-in-period? I am looking for a
investment option with better return and lesser lock-in-period.
• Equity Linked Savings Scheme or ELSS are tax-saving mutual funds that you can use to reduce taxable income by upto Rs 1.5
lakh under Section 80C.ELSSfunds have a lock-in period of 3years .

Direct Taxes

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Know Your Taxes

Income Tax Slabs FY19-20

Up to ₹2,50,000* Nil Nil

₹5,00,001 to ₹10,00,000 ₹12,500 + 20% of total income exceeding ₹5,00,000 4%

₹1,12,500 + 30% of total income exceeding 4%

Gross Income includes :

Interest Income ( Savings account (not applicable on Maximum up to Rs.

Medical On Self and dependent relative as reduced For Senior Citizens : Rs

NPS tax benefit

Standard Flat deduction from the employee’s salary Rs 40,000 . Revised to

HRA Monthly Rent (Landlord’s PAN required if Least of following:

Employee Exempt upto12% of Exempt upto 9.5% Withdrawal prior to 5 5 Years

Employee Exempt upto10% of Exempt Exempt Till Age of 60 Years

Tax Saving Exempt Taxable Exempt 5 Years

NSC Exempt Taxable but considered Exempt 5 Years

ELSS Exempt Dividend Distribution Gain after 31sT March 3 Years

Submit Form 12B Submit Submit Make Form No . 16 File your

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