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Income Tax Slab Rates – FY 2018-19

Updated on February 22nd, 2019 in Income Tax

Income Tax Slab Rates

Income Tax is a direct tax charged by the government from its citizens directly. This tax is charged at an individual level based on the income group of taxpayers. There are different slab rates for different income groups, which will be discussed in this article.

1. Factors for Income Tax Slab Applicability

Slab rates are those rates at which different income tax groups are charged differently for tax. The higher the income, the higher is the tax rate liable on taxpayers.

  • Individuals with income less than Rs. 2.5 lakhs per annum are not charged for tax.
  • Individuals with income between Rs. 2.5 lakhs and Rs. 5 lakhs are charged at a tax rate of 0-5% depending on their age.
  • Individuals with income between Rs. 5 lakhs and Rs. 10 lakhsare charged at a tax rate of 20%and above Rs. 10 lakhs are charged at 30%.
  • If an individual has any investment up to Rs. 1.5 lakhs, then s/he can save Rs. 45,000 on taxes, under Section 80C.

The income tax slab of an entity is determined on these factors:

  • Annual Income
  • Residential Status
  • Year of Assessment
  • Threshold till which income is not taxable
  • Gross Income

The income tax slabs are applicable to all residential individuals with regular income, Hindu Undivided Family (HUF), company/firm, AOP/BOI, and any local authority.

2.  Income Tax Slabs for FY 2018-19

Taxpayers can be individuals or organizations. Organizations may include companies, firms, associations, individual bodies, co-operative societies, etc. Individual taxpayers are divided into three main groups:

  •  Residential/ Non-residential Individual Taxpayers below 60 years of age and HUF
  •  Residential Senior Citizens between the age of 60 to 80 years
  •  Residential Senior Citizens above 80 years of age

 2.1 Individual Taxpayers (below 60 years) and HUF

Tax Slab

Tax Rate

Health and Education Cess

Income till Rs. 2.5 lakhsNil
Income Rs. 2.5 lakhs to Rs. 5 lakhs5%4% of income tax
Income Rs. 5 lakhs to Rs. 10 lakhs20%4% of income tax
Income over Rs. 10 lakhs30%4% of income tax

A surcharge of 10% income tax is charged on individuals whose total income exceeds between Rs. 50 lakhs and Rs. 1 crore. A surcharge of 15% income tax is charged on individuals whose total income exceeds Rs. 1 crore.

 2.2 Senior Citizens (60 to 80 years)

Tax Slab

Tax Rate

Health and Education Cess

Income till Rs. 3 lakhsNil
Income Rs. 3 lakhs to Rs. 5 lakhs5%4% of income tax
Income Rs. 5 lakhs to Rs. 10 lakhs20%4% of income tax
Income over Rs. 10 lakhs30%4% of income tax

A surcharge of 10% income tax is charged on individuals whose total income exceeds between Rs. 50 lakhs and Rs. 1 crore. A surcharge of 15% income tax is charged on individuals whose total income exceeds Rs. 1 crore.

 2.3 Senior Citizens (above 80 years)/Super Senior Citizens

Tax Slab

Tax Rate

Health and Education Cess

Income till Rs. 5 lakhsNil
Income Rs. 5 lakhs to Rs. 10 lakhs20%4% of income tax
Income over Rs. 10 lakhs30%4% of income tax

A surcharge of 10% income tax is charged on individuals whose total income exceeds between Rs. 50 lakhs and Rs. 1 crore. A surcharge of 15% income tax is charged on individuals whose total income exceeds Rs. 1 crore.

 2.4 Associations of Persons, Bodies of Individuals, and other Artificial Judicial Persons

Tax Slab

Tax Rate

Health and Education Cess

Income till Rs. 2.5 lakhsNil
Income Rs. 2.5 lakhs to Rs. 5 lakhs5%4% of income tax
Income Rs. 5 lakhs to Rs. 10 lakhs20%4% of income tax
Income over Rs. 10 lakhs30%4% of income tax

A surcharge of 10% income tax is charged on individuals whose total income exceeds between Rs. 50 lakhs and Rs. 1 crore. A surcharge of 15% income tax is charged on individuals whose total income exceeds Rs. 1 crore.

 2.5 Domestic Companies

Gross Turnover in PY 2016-17

Tax Rate

Cess

Up to Rs. 250 Crores25%4% of corporate tax
Over Rs. 250 Crores29%4% of income tax

A surcharge of 7% income tax is charged on companies whose taxable income exceeds between Rs. 1 crore and Rs. 10 crores. A surcharge of 12% income tax is charged on companies whose taxable income exceeds Rs. 10 crores

 2.6 Foreign Companies

The tax on Foreign Companies is levied at a flat rate of 40% of income. Health and Education Cess is charged at a rate of 4% of the income tax. A surcharge of 12% income tax is charged on companies whose taxable income exceeds Rs. 1 crore.

 2.7 Partnership Firms and LLP

The tax on Partnership Firms and Local Authorities is levied at a flat rate of 30% of income. Health and Education Cess is charged at a rate of 4% of the income tax. A surcharge of 12% income tax is charged on firms whose taxable income exceeds Rs. 1 crore.

 2.8 Co-operative Societies

Tax Slab

Tax Rate

Health and Education Cess

Income till Rs. 10,00010%4% of corporate tax
Income Rs. 10,000 to Rs. 20,00020%4% of income tax
Income over Rs. 20,00030%4% of income tax

A surcharge of 12% income tax is charged on societies whose taxable income exceeds Rs. 1crore.

If the total income of a resident individual does not exceed Rs. 3.5 lakhs, then s/he will get the benefit of rebate under Section 87A of GST Act. The amount of rebate will be Rs. 2,500 or 100% of the income tax, whichever is lesser.

Thus, to calculate income tax, one needs to compute the tax rate to their income and the resulting amount will have to be filed in the Income Tax Department.

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