The rates of income tax for the Financial Year 2018-19 or Assessment Year 2019-20

Income tax rates for the financial year 2018-19 for individual below 60 years, Hindu Undivided Family, association of persons, body of individuals, artificial juridical person are as below:

Up to Rs 2,50,000 Nil.
Rs 2,50,001 to Rs 5,00,000 5 %
Rs 5,00,001 to Rs 10,00,000 20%
Above Rs 10,00,000 30%

In the case of every individual, being a resident in India, who is between 60-80 years of age at any time during the previous year:

Up to Rs 3,00,000 Nil
Rs 3,00,001 to Rs 5,00,000 5%
Rs. 5,00,001 to Rs 10,00,000 20%
Above Rs 10,00,000 30%

In the case of every individual, being a resident in India, who is 80 years or more at any time during the previous year:

Up to Rs 5,00,000 Nil
Rs 5,00,001 to Rs 10,00,000 20%
Above Rs. 10,00,000 30%

Cess

For all categories of taxpayers, the 3% education cess to be replaced with Health and Education Cess at 4%. 

Surcharge

The amount of income-tax computed for each category of individuals will be increased by a surcharge at the rate of (no surcharge for income below Rs 50 lakh):

(i) 10% of such income-tax in case of a person having a total income exceeding Rs 50 lakh but not exceeding Rs 1 crore. 

(ii) 15% of such income-tax in case of a person having a total income exceeding Rs 1 crore.

However, in case of (i) above, the total amount payable as income-tax and surcharge on total income exceeding Rs 50 lakh but not exceeding Rs 1 crore, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of Rs 50 lakh by more than the amount of income that exceeds Rs 50 lakh.

Further, in case of (ii) above, the total amount payable as income-tax and surcharge on total income exceeding Rs 1 crore shall not exceed the total amount payable as income-tax and surcharge on a total income of Rs 1 crore by more than the amount of income that exceeds Rs 1 crore.

Here is a short presentation on income tax slabs for individuals for the financial year 2018-19 and assessment year 2019-20 as per the Union Budget 2018.

Author
Staff Writer

This article is written by RupeeIQ editorial staff.