Contents
- Income Tax Slab Rates: Highlights of 2019 Budget
- Income Tax Rates / Tax Rates Slabs for FY 2018-19
- Income Tax Rates for Individual Tax Payer & HUF (Up to 60 years Old)
- Income Tax Rates for Senior Citizens (60-80 Years Old)
- Income Tax Rates for Super Senior Citizens (80 years +)
- Income Tax Rates for Cooperative Socities
- Income Tax Rates for Domestic Companies
- Income Tax Rates for Foreign Companies
- Exceptions to the Tax Slabs
- Tax Slab (s) 2019-20
Income Tax Slab Rates: Highlights of 2019 Budget
Tax Rebate to individuals who are in ₹ 5lakh income tax slab rate
Increase in the standard deduction, tax saving of ₹13,520 for 5 lakh bracket
Please Note: This is applicable for the new Finacial Year 2019-20
The following article discusses the tax slab rates for the financial year 2018-19 in which, the Assessment Year is 2019-20
Income Tax Rates / Tax Rates Slabs for FY 2018-19
The income tax for people of different incomes/profits is different and it is classified under various slabs for every taxpayer. Here we list down the various Income Tax Slabs for all taxpayers.
Income Tax Rates for Individual Tax Payer & HUF (Up to 60 years Old)
| Income Tax Slabs | Tax Rate | Health and Educational Cess |
|---|---|---|
| Income up to ₹ 2,50,000 | No Tax | |
| Income Range ₹ 2,50,000- ₹5,00,000 | 5% | 4% of Income Tax |
| Income Range ₹ 5,00,000- ₹10,00,000 | 20% | 4% of Income Tax |
| Income Above ₹ 10,00,000 | 30% | 4% of Income Tax |
Income Tax Rates for Senior Citizens (60-80 Years Old)
| Income Tax Slabs | Tax Rate | Health and Educational Cess |
|---|---|---|
| Income up to ₹3,00,000 | No Tax | |
| Income Range ₹ 3,00,000- ₹5,00,000 | 5% | 4% of Income Tax |
| Income Range ₹ 5,00,000- ₹10,00,000 | 20% | 4% of Income Tax |
| Above ₹10,00,000 | 30% | 4% of Income Tax |
Income Tax Rates for Super Senior Citizens (80 years +)
| Income Tax Slabs | Tax Rate | Health and Educational Cess |
|---|---|---|
| Income up to ₹5,00,000 | No Tax | |
| Income up to ₹5,00,000 – ₹10,00,000 | 20% | 4% of Income Tax |
| Income ₹10,00,000 | 30% | 4% of Income Tax |
Income Tax Rates for Cooperative Socities
| Turnover Particulars | Tax Rate |
|---|---|
| Taxable income less than ₹ 10,000 | 10% |
| Taxable Income between ₹ 10,000- ₹20,000 | 20% of the amount exceeding the ₹10,000 |
| Taxable income greater than ₹ 20,000 | 30% of the amount exceeding the ₹20,000 |
Income Tax Rates for Domestic Companies
| Turnover Particulars | Tax Rate |
|---|---|
| Gross turnover upto ₹ 250 Crores | 25% |
| Gross turnover greater ₹ 250 Crores | 29% |
Income Tax Rates for Foreign Companies
| Turnover Particulars | Tax Rate |
|---|---|
| If Foreign Companies are paid by the government in form of royalties | 50% |
| Payment for Technical Services | 50% |
| Any other Services | 40% |
Exceptions to the Tax Slabs
Not all income can be taxed on a slab basis . Capital Gains that you have are taxed on the basis of the type of asset that generates that income and how long you have been holding it. The holding time of the asset will determine whether it is a Long Term Capital Gain (LTCG) or ashort term one. Here is a quick look into the holding period nature of asset and rate of taxes for the same in a tabular format.
| Capital Asset Type | Holding Period | Tax Rate |
|---|---|---|
| House Property | Holding Less than 24 months -Short Term Holding More than 24 months -Long Term |
20% dependent on Slab Rate |
| Debt Mutual Funds | Holding Less than 36 months -Short Term Holding more than 36 months -Long Term |
20% dependent on Slab Rate |
| Equity Mutual Funds | Holding Less than 12 months -Short Term Holding more than 12 months -Long Term |
Exempt (Till 31 March 2018 ) Capital Gains greater than 1 lakh rupees are taxable at 10% 15% |
| Shares (STT Paid) | Holding Less than 12 months -Short Term Holding more than 12 months -Long Term |
Exempt (Till 31 March 2018 ) Capital Gains greater than 1 lakh rupees are taxable at 10% 15% |
| Shares (STT Unpaid) | Holding Less than 12 months -Short Term Holding more than 12 months -Long Term |
20% As per slab rates |
| FMPs | Holding Less than 36 months -Short Term Holding more than 36 months -Long Term |
20% dependent on slab rates |
Tax Slab (s) 2019-20
The Interim Budget for the financial year 2019-20 was presented on 1st of February, 2019 by interim Finance Minister Shri Piyush Goyal in the Lok Sabha in which there were several amendments to the Income Tax Act 1961 with the Finance Bill 2019.
Clause 8 of the Finance Bill introduced in parliament on Friday seeks to amend section 87A of the Income Tax Act to provide relief to individual taxpayers by allowing a rebate on an annual income of up to ₹5 lakh. The main relief in this interim budget comes to the individual taxpayers is the rebate being offered u/s 87A of an income tax act.
Here’s a comparison of the income tax payable under the two financial years and how the finance bill 2019 has impacted the income tax applicable.
| Particulars | FY 2018 -19 | FY 2019-20 |
|---|---|---|
| Income from other heads | ₹6 ,50,000 | ₹ 6,50,000 |
| Income from saving banks | ₹10,000 | ₹10,000 |
| Gross Total Income | ₹6,60,000 | ₹6,60,000 |
| Less: Deduction u/s 80C | ₹1,50,000 | ₹1,50,000 |
| (LIC Premium, PPF, ELSS etc.) | ||
| Less: Deduction u/s 80TTA for bank interest | ₹10,000 | ₹10,000 |
| Total Taxable Income | ₹ 5,00,000 | ₹5,00,000 |
| Income tax Payable as per slab rates | ₹ 12,500 | ₹ 12,500 |
| Less: Rebate u/s 87A | – | (12,500) |
| Basic Tax: | 12,500 | – |
| Add: Health Education Cess @4% | 500 | |
| Tax Payable | 13,000 | – |
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