#1 - Income Tax in India | Slab Rates | FY 2019-20 AY 2020-21 | FinCalC [VIDEO]

Income Tax is the money that you pay to the government based on your Income or profit made by you in a Financial year. This money is used by the government for the development of infrastructure in the country and to pay the salaries of government employees.

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There are two types of Taxes that you pay, Direct Tax and Indirect Tax. Direct Tax is the Tax that you pay based on your income or profit that you make in a Financial Year. This Tax is directly paid to the government or is deducted from your salary. Whereas, Indirect Tax is the tax that you pay for goods and services, such as having food in restaurants. This tax is paid via an intermediary that's why the name, Indirect Tax. Following is the Income Tax Slab rates for the people of age below 60 years, for the Financial Year of 2019-20.

• No Tax if your Income is below rupees 2.5 lacs. This means that if your Income is below rupees 2.5 lacs in Financial Year of 2019-20, you need not have to pay any Income Tax.

• 5% Tax if your Income is between rupees 2.5 lacs to rupees 5 lacs. This means you need to pay 5% of Income Tax on the money above rupees 2.5 lacs, if your Income is between 2.5 lacs to 5 lacs in Financial Year 2019-20.

• 20% Tax if your Income is between rupees 5 lacs to rupees 10 lacs. This means that you pay 20% of Tax on income above rupees 5 lacs, plus, 5% tax on Income between rupees 2.5 to 5 lacs, if your Income is between rupees 5 lacs to 10 lacs.

• 30% Tax if your Income is above rupees 10 lacs. This means you pay 30% tax on Income above rupees 10 lacs, plus, 20% tax on income between rupees 5 lacs to 10 lacs, plus, 5% tax on Income between rupees 2.5 lacs to 5 lacs, if your Income is above rupees 10 lacs.

We will see the Tax calculation examples in upcoming videos and see how Tax is calculated in each Slab rate mentioned. You can also download our free Android app FinCalC to calculate your Income Tax. Slab rates for people of age between 60 years to 79 years is as follows.

• No Tax if your Income is below rupees 3 lacs. This means that if your Income is below rupees 3 lacs in Financial Year of 2019-20, you need not have to pay any Income Tax.

• 5% Tax if your Income is between rupees 3 lacs to rupees 5 lacs. This means you need to pay 5% of Income Tax on the money above rupees 3 lacs, if your Income is between 3 lacs to 5 lacs in Financial Year 2019-20.

• 20% Tax if your Income is between rupees 5 lacs to rupees 10 lacs. This means that you pay 20% of Tax on income above rupees 5 lacs, plus, 5% tax on Income between rupees 3 to 5 lacs, if your Income is between rupees 5 lacs to 10 lacs.

• 30% Tax if your Income is above rupees 10 lacs. This means you pay 30% tax on Income above rupees 10 lacs, plus, 20% tax on income between rupees 5 lacs to 10 lacs, plus, 5% tax on Income between rupees 3 lacs to 5 lacs, if your Income is above rupees 10 lacs.

Let us now see what are the Tax Slab Rates for people of age 80 years and above.

• No Tax if your Income is below rupees 5 lacs. This means that if your Income is below rupees 5 lacs in Financial Year of 2019-20, you need not have to pay any Income Tax.

• 20% Tax if your Income is between rupees 5 lacs to rupees 10 lacs. This means that you pay 20% of Tax on income above rupees 5 lacs, if your Income is between rupees 5 lacs to 10 lacs.

• 30% Tax if your Income is above rupees 10 lacs. This means you pay 30% tax on Income above rupees 10 lacs, plus, 20% tax on income between rupees 5 lacs to 10 lacs, if your Income is above rupees 10 lacs. If you notice, there is no 5% Tax Slab rate for people of age 80 years and above.

This is one of the perks of being a super senior citizen, you'll pay less Income Tax.

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