Tax Slab for FY 2018-19 (AY 2019-20) : Income Tax Rates The Interim Budget released redefined the income tax slab rates for individuals . Here's a brief overview of the same

 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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