Tax slabs for salaried and non-salaried persons in Budget 2019
The federal government has announced the budget on 11 June 2019 for the year 2019-2020 with several tax adjustments. This also included adjustments in income tax slabs for individuals and association of persons. The government has proposed reinstating taxes on everyone making a salary of more than Rs. 600,000 a year (or Rs50,000 a month). The limit for non-salaried individuals has been revised to Rs. 400,000.
It has also increased tax rates for both salaried and non-salaried persons.
Tax Slabs for Salaried persons Income
In the case of salaried individuals, the government has introduced 12 taxable slabs with a progressive taxation rate ranging from 5% to 35% of income.
| S. No | Taxable Income | Rate of Tax |
| 1. | Where the taxable income does not exceed Rs. 600,000 | 0% |
| 2. | Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | 5% of the amount exceeding Rs. 600,000 |
| 3. | Where taxable income exceeds Rs. 1,200,000 but does not exceed Rs. 1,800,000 | Rs. 30,000 plus 10% of the amount exceeding Rs. 1,200,000 |
| 4. | Where taxable income exceeds Rs. 1,800,000 but does not exceed Rs. 2,500,000 | Rs. 90,000 plus 15% of the amount exceeding Rs. 1,800,000 |
| 5. | Where taxable income exceeds Rs. 2,500,000 but does not exceed Rs. 3,500,000 | Rs. 195,000 plus 17.5% of the amount exceeding Rs. 2,500,000 |
| 6. | Where the taxable income exceeds Rs. 3,500,000 but does not exceed Rs. 5,000,000 | Rs. 370,000 plus 20% of the amount exceeding Rs. 3,500,000 |
| 7. | Where the taxable income exceeds Rs. 5,000,000 but does not exceed Rs. 8,000,000 | Rs. 670,000 plus 22.5% of the amount exceeding Rs. 5,000,000 |
| 8. | Where the taxable income exceeds Rs. 8,000,000 but does not exceed Rs. 12,000,000 | Rs. 1,345,000 plus 25% of the amount exceeding Rs. 8,000,000 |
| 9. | Where the taxable income exceeds Rs. 12,000,000 but does not exceed Rs. 30,000,000 | Rs. 2,345,000 plus 27.5% of the amount exceeding Rs. 12,000,000 |
| 10. | Where the taxable income exceeds Rs. 30,000,000 but does not exceed Rs. 50,000,000 | Rs. 7,295,000 plus 30% of the amount exceeding Rs. 30,000,000 |
| 11. | Where the taxable income exceeds Rs. 50,000,000 but does not exceed Rs. 75,000,000 | Rs. 13,295,000 plus 32.5% of the amount exceeding Rs. 50,000,000 |
| 12. | Where the taxable income exceeds Rs. 75,000,000 | Rs. 21,420,000 plus 35% of the amount exceeding Rs. 75,000,000 |
Tax Slabs for Non-Salaried persons Income
The rates of tax imposed on the income of every individual and association of persons, except a salaried individual, are 8 taxable slabs of income with tax rates ranging from 5% to 35% are being introduced in the following manner:
| S. No | Taxable Income | Rate of Tax |
| 1. | Where the taxable income does not exceed Rs. 400,000 | 0% |
| 2. | Where the taxable income exceeds Rs. 400,000 but does not exceed Rs. 600,000 | 5% of the amount exceeding Rs. 400,000 |
| 3. | Where the taxable income exceeds Rs. 600,000 but does not exceed Rs. 1,200,000 | Rs. 10,000 plus 10% of the amount exceeding Rs. 600,000 |
| 4. | Where the taxable income exceeds Rs. 1,200,000 but does not Rs. 2,400,000 | Rs. 70,000 plus 15% of the amount exceeding Rs. 1,200,000 |
| 5 | Where taxable income exceeds Rs. 2,400,000 but does not exceed Rs. 3,000,000 | Rs. 250,000 plus 20% of the amount exceeding Rs. 2,400,000 |
| 6 | Where taxable income exceeds Rs. 3,000,000 but does not exceed Rs. 4,000,000 | Rs. 370,000 plus 25% of the amount exceeding Rs. 3,000,000 |
| 7. | Where the taxable income exceeds Rs. 4,000,000 but does not exceed Rs. 6,000,000 | Rs. 620,000 plus 30% of the amount exceeding Rs. 4,000,000 |
| 8. | Where the taxable income exceeds Rs. 6,000,000 | Rs. 1,220,000 plus 35% of the amount exceeding Rs. 6,000,000 |
No more exemptions on GIFTS
The government has also wised up to the practice of people avoiding taxation and hiding undisclosed sources of income by declaring assets as ‘gifts‘.
According to the new policy, all ‘gifts’ will now be considered ‘income from other sources’. The only exceptions that will be made will be for ‘genuine gift transactions’, i.e. on transactions between close family members and so on.
“Consequently any amount in cash or fair market value of any property including immovable property would be treated as gift,” the government says.
