The latest income tax (I-T) slabs applicable for financial year 2018-19 (assessment year 2019-20) are given below. These slabs and tax rates were announced in Budget 2018. Arun Jaitley, in his budget speech said that total cess on income tax will be increased to 4% but there will be no change in the existing tax slabs and income tax rates.
In India, income tax is levied on individual taxpayers on the basis of a slab system where different tax rates have been prescribed for different slabs and such tax rates keep increasing with an increase in the income slab. Such tax slabs tend to undergo a change during every budget. Further, since the budget 2018 has not announced any changes in income tax slabs this time, it remains the same as that of last year. Last year's budget increased cess on income tax to 4 per cent from 3 percent earlier across the board for taxpayers. Due to the hike in cess, the tax liability for the highest slab (assuming an income of Rs 15 lakh) has increased by Rs 2,625. In the middle income tax slab, the tax outgo increases by Rs 1,125, and there is a nominal increase in the tax liability of Rs 125 for lowest income tax slab.
For Non-resident individuals (NRI), the basic exemption limit is of Rs 2.5 lakh in a financial year irrespective of their age
There are three categories of individual taxpayers: 1.Individuals (below the age of 60 years) which includes residents as well as non-residents 2.Resident Senior citizens (60 years and above but below 80 years of age) 3.Resident Super senior citizens (above 80 years of age) Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2018-19 – Part IIncome Tax Slabs
| Tax Rate | Health and Education Cess |
|---|
| Income up to Rs 2,50,000* | Nil | Nil | Income from Rs 2,50,000 – Rs 5,00,000
| 5% | 4% of Income Tax | | Income from Rs 5,00,000 – 10,00,000 | 20% | 4% of Income Tax | | Income more than Rs 10,00,000 | 30% | 4% of Income Tax |
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2018-19 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)
Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2018-19 – Part II| Income Tax Slabs | Tax Rate | Health and Education Cess | | Income up to Rs 3,00,000* | No tax | | | Income from Rs 3,00,000 – Rs 5,00,000 | 5% | 4% of Income Tax | | Income from Rs 5,00,000 – 10,00,000 | 20% | 4% of Income Tax | | Income more than Rs 10,00,000 | 30% | 4% of Income Tax |
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2018-19 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)
Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2018-19 – Part III| Income Tax Slabs | Tax Rate | Health and Education Cess | | Income up to Rs 5,00,000* | No tax | | | Income from Rs 5,00,000 – 10,00,000 | 20% | 4% of Income Tax | | Income more than Rs 10,00,000 | 30% | 4% of Income Tax |
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore. *Income tax exemption limit for FY 2018-19 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)
Income Tax Slabs for Domestic Companies for FY 2018-19 – Part IV| Turnover Particulars | Tax Rate | | Gross turnover upto 250 Cr. in the previous year | 25% | | Gross turnover exceeding 250 Cr. in the previous year | 30% |
In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax
Surcharge: Taxable income is more than 1Cr. but less than 10Cr.: 7%
Taxable income is more than 10Cr. :12%
The education cess of 2% and secondary cess of 1% are calculated on the amount of tax payable separately. Both the cess are then added to the tax payable to arrive at the Gross tax payable amount.
A resident individual can also avail rebate under Section 87(A) whose net income is equal to or less than Rs 3.5 lakh. The amount of rebate under this section is 100% of the income tax or Rs 2,500 whichever is less. It is deductible before calculating the cess.
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