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File Your ITR Online | Income Tax Rates For Financial Year 2018-19

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Income Tax Slabs And Income Tax Rates For Financial Year 2018-19

The last date of filing the Income Tax Return for Financial Year 2018-19 or Assessment Year 2019-20 is approaching! Yet, many people are still confused about the income tax slabs they fall in and what income tax rates are applicable over them.

File your ITR with LetsComply and read our guide on the different income tax rates on income tax slabs for various kinds of taxpayers in India:

Resident Individuals & Non-Resident Indians

Indian individual citizens who also reside in the country, and non-resident Indians (NRIs) who are below the age of 60 years, are taxed as per to the same income tax slabs and income tax rates. The following income tax slabs and rates are applicable over them for Assessment Year 2019-20.

Income Threshold Tax rate applicable
Up to INR 2,50,000  NIL
INR 2,50,001 to INR 5,00,000  5% on income exceeding INR 2.5 lakh (maximum INR  12,500)
INR 5,00,001 to INR 10,00,000 20% on income exceeding INR 5 lakh  (maximum INR  1 lakh) + INR  12,500
Over INR 10,00,001 30% on income exceeding INR  10 lakh + INR  1 lakh + INR  12,500

Other Components Considered For Income Tax Filing

  1. Surcharge: When the income is above INR 50 lakh and less than INR 1 crore, a surcharge is applicable at 10% of the income tax.
  2. Health and Education Cess: Education Cess and Secondary and Higher Education Cess are replaced by Health and Education Cess at 4% of the tax calculated, which is inclusive of surcharge.

Income Tax Rates For Financial Year 2018-19 For Senior Citizens

Individual citizens who are aged over 60 years and less than 80 years are categorized as Senior Citizens for taxation purposes. The income tax slab rates for senior citizens for the financial year 2018-19 are:

Income Threshold Tax rate applicable
Up to INR 3,00,000 Nil
INR 3,00,001 to INR 5,00,000 5% on income exceeding INR  3 lakh (maximum INR  10,000)
INR 5,00,001 to INR 10,00,000 20% on income exceeding INR  5 lakh (maximum INR  1 lakh) + INR  10,000
Over INR 10,00,001 30% on income exceeding INR  10 lakh + INR  1 lakh + INR  10,000

Other Income Tax Components

  • Surcharge: When the income is above INR 50 lakh and less than INR 1 crore, a surcharge is applicable at 10% of the income tax. When the income is above INR 1 crore, the surcharge is applicable at 15% of the income tax, only on the amount exceeding INR 1 crore.
  • Health and Education Cess: Education Cess and Secondary and Higher Education Cess are replaced by Health and Education Cess at the rate of 4% of the tax calculated, which is inclusive of surcharge.

Super Senior Citizens

Super senior citizens are individuals aged 80 years and above for the purposes of taxation. The income tax slabs and rates applicable over super senior citizens for the financial year 2018-19:

Income Threshold Tax rate applicable
Up to INR 5,00,000 NIL
INR 5,00,001 to INR 10,00,000 20% on income exceeding INR 5 lakh (maximum INR  1 lakh)
INR 10,00,001 30% on income exceeding INR 10 lakh + INR  1 lakh

Other Factors Relating To ITR Calculation

  • Surcharge: When the income is above INR 50 lakh and less than INR 1 crore, a surcharge is applicable at 10% of the income tax. When the income is above INR 1 crore, the surcharge is applicable at 15% of the income tax, only on the amount exceeding INR 1 crore.
  • Health and Education Cess: Education Cess and Secondary and Higher Education Cess are replaced by Health and Education Cess at the rate of 4% of the tax calculated, which is inclusive of surcharge.

Hindu Undivided Families (HUFs)

A Hindu Undivided Family (HUF) is headed by its head of the family also known as Karta. The following Income Tax slabs and rates are applicable to a Hindu Undivided Family for Assessment Year 2019-20 or Financial Year 2018-19:

Income Threshold Tax rate applicable
Up to INR 2,50,000 Nil
INR 2,50,001 to INR 5,00,000 5% on income exceeding INR 2.5 lakh (maximum INR  12,500)
INR 5,00,001 to INR 10,00,000 20% on income exceeding INR 5 lakh (maximum INR  1 lakh) + INR  12,500
Over INR 10,00,001 30% on income exceeding INR  10 lakh + INR  1 lakh + INR  12,500

Other Components

  • Surcharge: When the income is above INR 50 lakh and less than INR 1 crore, a surcharge is applicable at 10% of the income tax. When the income is above INR 1 crore, the surcharge is applicable at 15% of the income tax, only on the amount exceeding INR 1 crore.
  • Health and Education Cess: Education Cess and Secondary and Higher Education Cess are replaced by Health and Education Cess at the rate of 4% of the tax calculated, which is inclusive of surcharge.

Associations of Persons, Bodies of Individuals and Other Artificial Judicial Persons

An Association of Persons (AOP) and Body of Individuals (BoI) are defined as an association of two or more people who work together with the aim of making profits. The income tax rates and slabs for AoP and BoI for the financial year 2018-19 are as follows:

Income Threshold Tax rate applicable
Up to INR 2,50,000 Nil
INR 2,50,001 to INR 5,00,000 5% on income exceeding INR 2.5 lakh (maximum INR  12,500)
INR 5,00,001 to INR 10,00,000 20% on income exceeding INR 5 lakh (maximum INR  1 lakh) + INR  12,500
Over INR 10,00,001 30% on income exceeding INR  10 lakh + INR  1 lakh + INR  12,500

Other Components Of Income Tax Calculation

  1. Surcharge:  When the income is above INR 50 lakh and less than INR 1 crore, the surcharge is applicable at 10% of the income tax. When the income is above INR 1 crore, the surcharge is applicable at 15% of the income tax, only on the amount exceeding INR 1 crore.
  2. Education Cess: 2% EC is applicable to the income tax amount plus an applicable surcharge.
  3. Higher Secondary & Higher Education Cess: Extra 1% is applicable to the income tax plus surcharge applicable for all taxpayers.

Income Tax Rates For Financial Year 2018-19 For Partnership Firms

The tax rate applicable over both kinds of Partnerships in India- Limited Liability Partnership and General Partnership Firm, has been fixed at 30%. Other factors of income tax calculation for partnerships include:

  • Surcharge: If the income is more than INR 1 crore, a surcharge of 12% is applicable over the income tax amount.
  • Health and Education Cess: Health and Education Cess is applicable at 4%, on the amount of tax computed which inclusive of surcharge.

Local Entity Or Authorities

A flat rate of 30% is applicable over all the Local Authorities. Other factors of income tax calculation for local authorities include:

  • Surcharge: If the income is more than INR 1 crore, a surcharge of 12% is applicable over the income tax amount.
  • Health and Education Cess: Health and Education Cess is applicable at 4%, on the amount of tax computed which inclusive of surcharge.

ALSO READ: Procedure To Claim Income Tax Refund In India

Domestic Companies

For any domestic company whether a private limited company, one person company or public company, the income tax rate is fixed at 30%. The only exception to this is when the gross receipt of the company is not more than INR 250 crore in the last year, the income tax rate is fixed at 25%. Other components include:

  1. Surcharge: If the company’s income is more than INR 1 crore and less than INR 10 crore, surcharge at 7% is applicable to the income tax amount. When the amount is more than INR 10 crore, the surcharge is applicable at 12%. Marginal relief is available to companies in the following cases:
    1. Where income is more than INR 1 crore and less than INR 10 crore, the total amount payable as income-tax and surcharge will not be more than the total amount payable as income-tax on the income of more INR 1 crore by more than the income that exceeds INR 1 crore.
    2. Where income is more than INR 10 crore, the total amount payable as income-tax and surcharge will not exceed the total amount payable as income-tax on total income of INR 10 crore by more than the amount of income that exceeds INR 10 crore.
  2. Health and Education Cess: Health and Education Cess is applicable at 4% on the amount of tax computed which is inclusive of surcharge.

Foreign Companies

A foreign company or entity is taxed differently than Indian companies to avoid double taxation. The following tax rates are applicable to foreign companies in India:

Nature of Income Tax rate
If any Foreign Company operating in India receives royalty compensated by the Government against the agreements executed with the Indian concern (after 31st March 1961, and prior to 1st April  1976) 50%
If any Foreign Company operating in India receives income as fees for any technical services provided as per the agreements executed with an Indian concern (after 29th February 1964, and prior to 1st April  1976) 50%
Any other additional income earned by the Foreign Company operating in India 40%

Other Factors Relating To ITR Calculation

  1. Surcharge: In case the income is between INR 1 crore and INR 10 crore, the surcharge is applicable @ 2% of the income tax amount. If income is greater than INR 10 crore- 5% of the income tax amount is charged as surcharge
  2. Health and Education Cess: Health and Education Cess is applicable at 4% on the amount of tax computed which is inclusive of surcharge.

Income Tax Rates For Financial Year 2018-19 For Co-operative Societies

Urban, Semi-urban or Rural excluding Self Help Group (SHG) and Agricultural Societies.

Income Threshold Tax rate applicable
Up to INR 10,000 10%
INR 10,001 to  INR 20,000 20%
Over  INR 20,001 30%
  • Surcharge: In case income is more than INR 1 crore, the surcharge is applicable @ 12% of the income tax amount.
  • Health and Education Cess: Health and Education Cess is applicable at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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