Income Tax Slab for the Assessment Year 2019-20

Every individual is required to file their income tax returns for the income drawn by them during a financial year. The Income Tax Slabs are the rates which are determined in advance by the Central Government. The income of an individual is assessed on the basis of these rates. The Income Tax slabs for the financial year 2018-19, i.e. assessment year 2019-20 can be divided in to 4 main categories:

  1. Individuals and Hindu Undivided Family (HUF) below the age of 60 years

  2. Senior Citizens, i.e. citizens who are above the age of 60 years but below the age of 80 years

  3. Senior Citizens who are above the age of 80 years (also known as Super Senior Citizens)

  4. Domestic Companies

Although no changes were announced for the Income Tax slabs in the Budget for 2018, there were certain changes which were implemented with regard to the applicable cess and the standard deduction. The prevalent 3% Education Cess has been replaced by a Health and Education Cess of 4%. The government has also introduced a standard deduction of Rs.40,000 which is applicable for all the individuals who draw a salary.

The Income Tax slabs for different categories of taxpayers for the financial year 2018-19 (assessment year 2019-20) are given below.

1) Individuals and Hindu Undivided Family (HUF) below the age of 60 years (Part – I):

Annual Income

Tax Rates

Health and Education Cess

Up to Rs.2.5 lakh*

Nil

Nil

Rs.2,50,001-Rs.5 lakh

5%

4% of Income Tax

Rs.5,00,001-Rs.10 lakh

20%

4% of Income Tax

Above Rs.10 lakh

30%

4% of Income Tax

Surcharge:

  • The surcharge will be charged at 10% of the income tax if the total amount of income is Rs.50 lakh or above, to the extent of Rs.1 crore.
  • The surcharge will be charged at 15% of the income tax if the total amount of income exceeds the amount of Rs.1 crore.

*For the financial year 2018-2019 (assessment year 2019-20), the limit of income tax exemption is up to Rs.2.5 lakh for an individual and Hindu Undivided Family (HUF). However, individuals who are covered under Part – II or Part – III are not eligible for this limit.

2) Senior Citizens, i.e. citizens who are above the age of 60 years but below the age of 80 years (Part – II):

Annual Income

Tax Rates

Health and Education Cess

Up to Rs.3 lakh*

Nil

Nil

Rs.3,00,001-Rs.5 lakh

5%

4% of Income Tax

Rs.5,00,001-Rs.10 lakh

20%

4% of Income Tax

Above Rs.10 lakh

30%

4% of Income Tax

Surcharge:

  • The surcharge will be charged at 10% of the income tax if the total amount of income is Rs.50 lakh or above, to the extent of Rs.1 crore.
  • The surcharge will be charged at 15% of the income tax if the total amount of income exceeds the amount of Rs.1 crore.

*For the financial year 2018-2019 (assessment year 2019-20), the limit of income tax exemption is up to Rs.3 lakh for an individual and Hindu Undivided Family (HUF). However, individuals who are covered under Part – I or Part – III are not eligible for this limit.

3) Senior Citizens who are above the age of 80 years (also known as Super Senior Citizens) (Part – III):

Annual Income

Tax Rates

Health and Education Cess

Up to Rs.5 lakh*

Nil

Nil

Rs.5,00,001-Rs.10 lakh

20%

4% of Income Tax

Above Rs.10 lakh

30%

4% of Income Tax

Surcharge:

  • The surcharge will be charged at 10% of the income tax if the total amount of income is Rs.50 lakh or above, to the extent of Rs.1 crore.
  • The surcharge will be charged at 15% of the income tax if the total amount of income exceeds the amount of Rs.1 crore.

*For the financial year 2018-2019 (assessment year 2019-20), the limit of income tax exemption is up to Rs.5 lakh for an individual and Hindu Undivided Family (HUF). However, individuals who are covered under Part – I or Part – II are not eligible for this limit.

Note: Tax Deducted at Source (TDS) has to be deducted at applicable rates as mentioned above along with the surcharge and Health and Education Cess.

4) Domestic Companies:

Turnover Particulars

Tax Rate

If the gross turnover in the previous year is less than Rs.250 crore

25%

If the gross turnover in the previous year is more than Rs.250 crore

30%

Additional rates which are applicable:

Cess: 4% of the corporate tax

Surcharge:

  • The surcharge will be charged at 7% of the income tax if the total amount of income is Rs.1 crore or above, to the extent of Rs.10 crore.

  • The surcharge will be charged at 12% of the income tax if the total amount of income exceeds the amount of Rs.10 crore.

Find here the Income Tax slabs for NRIs, Expats, Freelancers, Doctors, Pensioners for the financial year 2018-19 (assessment year 2019-20).

Link

Leave a Reply

Your email address will not be published. Required fields are marked *