Income Tax Slabs for FY 2019-20 (AY 2020-21)

Income Tax Slab for Resident Individual aged less than 60 Years(0- below 60 years) - FY 2019-20 (AY 2020-21)

(Same slab rates shall apply for both Male and Female Resident Taxpayers)

Income Range Tax applicable
Income Upto Rs. 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Less : Rebate u/s 87A
Add  : Surcharge, Health and Education Cess

Income Tax Slab for Resident Individual (Senior Citizen) aged 60 Years & Above but less than 80 Years (60-below 80 years) - FY 2019-20 (AY 2020-21)

(Same slab rates shall apply for both Male and Female)

Income Range Tax applicable
Income Upto Rs. 3,00,000 0%
3,00,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Less : Rebate u/s 87A
Add  : Surcharge, Health and Education Cess
How to Calculate Income Tax? Click here

 

Income Tax Slab for Resident Individual(Super Senior Citizen Taxpayers) aged 80 Years and Above -FY 2019-20 (AY 2020-21)

(Same slab rates shall apply for both Male and Female)

Income Range Tax applicable
Income Upto Rs. 5,00,000 0%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Less : Rebate u/s 87A
Add  : Surcharge, Health and Education Cess

Income Tax Slab for Non-Resident Individuals (NRI) FY 2019-20 (AY 2020-21)

(Same slab rates shall apply for both Male and Female)

Income Range Tax applicable
Income Upto Rs. 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Add : Surcharge ,Health and Education Cess

Please note: Rebate u/s 87A and Age-wise slab rate as discussed above in case of the resident individual are not available to Non-Residents.

Income Tax Slab for Hindu Undivided Family (HUF) - FY 2019-20 (AY 2020-21)

Income Range Tax applicable
Income Upto Rs. 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Add  : Surcharge,Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to HUF.

Income Tax Slab for Body of Individual (BOI) - FY 2019-20 (AY 2020-21)

Income Range Tax applicable
Income Upto Rs. 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to BOI.

Income Tax Slab for Association of Person (AOP) - FY 2019-20 (AY 2020-21)

Income Range Tax applicable
Income Upto Rs. 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to AOP.

Income Tax Slab for other Artificial Judicial Person (AJP) - FY 2019-20 (AY 2020-21)

Income Range Tax applicable
Income Upto Rs. 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above Rs. 10,00,000 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to AJP.

Income Tax Slab for Firm and Limited Liability Partnership (LLP) - FY 2019-20 (AY 2020-21)

Firm or LLP profits are taxable at a flat rate of 30% for FY 2019-20 (AY 2020-21)
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to LLP.

Income Tax Slab for Indian Companies - FY 2019-20 (AY 2020-21)

Total Turnover or Gross Receipts (Rs.) Tax applicable
The amount does not exceed Rs.250 crore, in the previous year 2016-17 25%
The amount exceeds Rs.250 crore in the previous year 2016-17 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to Indian Companies.

Income Tax Slab for Foreign Companies - FY 2019-20 (AY 2020-21)

Foreign Company's profit shall be charged at a flat rate of 40% for FY 2019-20 (AY 2020-21)
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to Foreign Company.

Income Tax Slab for Cooperative Societies - FY 2019-20 (AY 2020-21)

Income Range Tax applicable
Income Upto Rs. 10,000 10%
From 10,001 - 20,000 20%
Above Rs 20,000 30%
Add : Surcharge
Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to Cooperative Societies.

Income Tax Slab for Local Authority - FY 2019-20 (AY 2020-21)

Local Authorities are taxable at a flat rate of 30% for FY 2019-20 (AY 2020-21)
Add : Surcharge
Health and Education Cess

Add the following to the tax calculated above

Surcharge - FY 2019-20 (AY 2020-21)

In case of an Individual, HUF, AOP / BOI, Artificial Judicial Person :
  • Where Total Income exceeds Rs. 50 lakhs but upto Rs.1 Cr - 10% surcharge on income tax
  • Where Total Income exceeds Rs. 1 Cr - 15% surcharge on income tax above 1 Cr.
In case of an Indian Company
  • Where Total Income exceeds Rs. 1 Cr but upto Rs. 10 Cr - 7% surcharge on income tax
  • Where Total Income exceeds Rs. 10 Cr - 12% surcharge.
In case of a Foreign Company
  • Where Total Income exceeds Rs. 1 Cr but upto Rs. 10 Cr - 2% surcharge on income tax
  • Where Total Income exceeds Rs. 10 Cr - 5% surcharge.
In case of a Partnership Firm or LLP, Cooperative Society, AOP, BOI, AJP
  • Where Total Income exceeds Rs. 1 Cr - 12% surcharge on income tax above 1 Cr.
Health and Education Cess - FY 2019-20 (AY 2020-21)
  • HEC shall be added at 4% in all cases upon the income tax so calculated or Income tax + surcharge so calculated in cases of income above Rs. 50 lakhs.
Rebate u/s 87A - FY 2019-20 (AY 2020-21)
  • Rebate u/s 87A in case total income of the resident individual taxpayer does not exceed Rs. 5 lakhs, tax relief on Actual Tax payable for income upto Rs.5 lakhs or, Rs. 12,500 (whichever is lower)

Note: The income chargeable to tax rate shall be after all admissible deductions.

Budget 2019

 

 

Income Tax Slabs for F.Y 2019-20 (AY 2020-21)

 

On 1st Feb 2019, Finance Minister Mr.Piyush Goyal tabled the Interim Budget 2019 in the Parliament. In Budget 2019, the following tax provisions have been announced in relation to slabs of income tax slabs and rates :

1- No Tax on Taxable Annual Income up to Rs. 5 Lakh.

The limit of Rebate u/s 87A has been increased from Rs.3.5 Lakhs to Rs.5 Lakhs.

Section 87A provides exemption on tax payment to a RESIDENT INDIVIDUAL. As per this provision, if an individual’s taxable income is upto Rs. 5 lakhs then he will get the benefit of Rs. 12500 or the amount of tax whichever is lower. If you are liable to pay tax upto the limit of rebate allowed, then after taking the rebate benefit, no payment will be required to be made for tax amount. For availing the full amount of rebate, the Total Taxable Income of return filer shall be up to Rs 5,00,000 for the Financial Year 2019-20, the Assessment year 2020-21. https://blog.tax2win.in/what-is-rebate-under-section-87a-itr/

2- Standard deduction increased from Rs 40,000 to Rs 50,000 for salaried class and pensioners.

3- No change in Income Tax slabs.

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Calculate your tax liability Post Budget 2019 now! [FY 2018-19 Tax Payments vs FY 2019-20 Tax Payment] Use our Income Tax Calculator [Updated] now and see your tax saving!

Income Tax Slab Rate in India for FY 2018-19 ( A.Y. 2019-20)

Let’s get the insights of the Income Tax Slabs for FY 2018-19 (AY 2019-20), FY 2017-18(AY 2018-19) & previous years:

Contents

Budget 2018

 

 

Income Tax Slabs for F.Y 2018-19 (AY 2019-20)

 

On 1st Feb 2018, Finance Minister Mr.Arun Jaitley tabled the Union Budget 2018-19 in the Parliament. In Budget 2018, the following tax provisions have been announced in relation to slabs of income tax tax slabs and rates :

No Change in the Personal Income Tax Rate :

Budget 2018 has kept the slabs and the slab rates of an individual unaltered.Moreover, no modifications has been done in surcharge and rebate u/s 87A.In simple words, the personal income tax slabs for 2018-19 would be same as of F.Y 17-18 as well. For detailed slab rates of F.Y 17-18, Click Here

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Introduction of Health and Education Cess @ 4% :

The earlier cesses (Primary Education Cess and the Secondary and Higher Education Cess ) @ 3% have been replaced by the new cess namely health and education cess for AY 2018-19 @ 4%. Thereby increasing your tax outgo by 1 %.This rise in the cess is done for all categories of assessees (individual, HUF, Firm , company etc.).

The impact of increase in cess can be understood with the help of below table:

Income (Rs.) Cess in F.Y 17-18 Cess in F.Y 18-19 Increase in Liability
If your income is Rs. 25 Lakhs 16875 22500 5625
If your income is Rs. 8 lakhs 2175 2900 725
If your income is 5 lakhs 375 500 125

However, the increase in the tax liability can be further reduced by availing the benefit of Standard Deduction of Rs. 40,000 which has been reintroduced in F.Y 18-19. Standard Deduction has come in lieu of transport allowance and medical reimbursement.

 

Now, Let’s see the impact of Standard Deduction on our Cess Liability in F.Y 18-19:

Income (Rs.) Cess in F.Y 17-18 Cess in F.Y 18-19 Increase in Liability
If your income is Rs. 25 Lakhs 16567 22020 5453
If your income is Rs. 8 lakhs 1970 2580 610
If your income is 5 lakhs 324 420 96

Note : In the above calculation, benefit of Rs. 34200 (Transport and Medical Reimbursement) has been provided in F.Y 17-18 and 40,000 standard deduction in F.Y. 18-19.

 

Change in the corporate taxation

A further relief has been provided to micro, small, and medium scale enterprises in Budget 2018. Companies with a turnover of less than Rs 250 crores in FY16-17 would be required to pay tax at 25 percent in FY18-19.However, all other companies shall pay the tax @ 30%.

For F.Y.2018-19( A.Y. 2019-20) the income tax slab for Indian Company :

Total Turnover or Gross Receipts (Rs.) Rate of Income Tax
Amount does not exceed Rs.250 crore, in the previous year 2016-17 25%
Amount exceeds Rs.250 crore 30%
Add: Add: Surcharge and Health & Education Cess
Want to calculate your tax liability for the year 2018-19 ? Click here

Income Tax Slab for Resident Individual aged less than 60 Years(0-59 years)

(Same slab rates shall apply for both Male and Female Resident Taxpayers)

Income Range Tax applicable
Income Upto ? 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000   20%
Above ? 10,00,000 30%
Less : Rebate u/s 87A
Add  : Surcharge, Health and Education Cess

Income Tax Slab for Resident Individual (Senior Citizen) aged 60 Years & Above but upto 80 Years(60-79 years)

(Same slab rates shall apply for both Male and Female)

Income Range Tax applicable
Income Upto ? 3,00,000 0%
3,00,001 - 5,00,000 5%
5,00,001 - 10,00,000   20%
Above ? 10,00,000 30%
Less : Rebate u/s 87A
Add  : Surcharge, Health and Education Cess
How to Calculate Income Tax? Click here

 

Income Tax Slab for Resident Individual(Super Senior Citizen Taxpayers) aged Above 80 Years

(Same slab rates shall apply for both Male and Female

Income Range Tax applicable
Income Upto ? 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000   20%
Above ? 10,00,000 30%
Less : Rebate u/s 87A
Add  : Surcharge, Health and Education Cess

Income Tax Slab for Non-Resident Individuals (NRI)

(Same slab rates shall apply for both Male and Female

Income Range Tax applicable
Income Upto ? 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above ? 10,00,000 30%
Add : Surcharge ,Health and Education Cess

Please note: Rebate u/s 87A and Age-wise slab rate as discussed above in case of the resident individual are not available to Non-Residents.

Income Tax Slab for Hindu Undivided Family (HUF)

Income Range Tax applicable
Income Upto ? 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000 20%
Above ? 10,00,000 30%
Add  : Surcharge,Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to HUF.

Income Tax Slab for Body of Individual (BOI)

Income Range Tax applicable
Income Upto ? 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000   20%
Above ? 10,00,000 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to BOI.

Income Tax Slab for Association of Person (AOP)

Income Range Tax applicable
Income Upto ? 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000   20%
Above ? 10,00,000 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to AOP.

Income Tax Slab for other Artificial Judicial Person (AJP)

Income Range Tax applicable
Income Upto ? 2,50,000 0%
2,50,001 - 5,00,000 5%
5,00,001 - 10,00,000   20%
Above ? 10,00,000 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to AJP.

Income Tax Slab for Firm and Limited Liability Partnership (LLP)

Firm or LLP profits are taxable at a flat rate of 30% for FY 2018-19 (AY 2019-20)
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to LLP.

Income Tax Slab for Indian Companies

Total Turnover or Gross Receipts (Rs.) Tax applicable
The amount does exceed Rs.250 crore, in the previous year 2016-17 25%
The amount exceeds Rs.250 crore in the previous year 2016-17 30%
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to Indian Companies.

Income Tax Slab for Foreign Companies

Foreign Company's profit shall be charged at a flat rate of 40% for FY 2018-19 (AY 2019-20)
Add : Surcharge, Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to Foreign Company.

Income Tax Slab for Cooperative Societies

Income Range Tax applicable
Income Upto ? 10,000 10%
From 10,001 - 20,000 20%
Above ? 20,000 30%
Add : Surcharge
Health and Education Cess

Please note: Rebate u/s 87A as discussed above in case of the resident individual are not available to Cooperative Societies.

Income Tax Slab for Local Authority

Local Authorities are taxable at a flat rate of 30% for FY 2018-19 (AY 2019-20)
Add : Surcharge
Health and Education Cess

Add the following to the tax calculated above

Surcharge

In case of an Individual, HUF, AOP / BOI, Artificial Judicial person :
  • Where Total Income exceeds ? 50 lakhs but upto ? 1 Cr - 10% surcharge on income tax
  • Where Total Income exceeds ? 1 Cr - 15% surcharge on income tax above 1 Cr.
In case of an Indian Company
  • Where Total Income exceeds ? 1 Cr but upto ? 10 Cr - 7% surcharge on income tax
  • Where Total Income exceeds ? 10 Cr - 12% surcharge.
In case of a Foreign Company
  • Where Total Income exceeds ? 1 Cr but upto ? 10 Cr - 2% surcharge on income tax
  • Where Total Income exceeds ? 10 Cr - 5% surcharge.
Health and Education Cess :
  • HEC shall be added at 4% in all cases upon the income tax so calculated or Income tax + surcharge so calculated in cases of income above ? 50 lakhs.
Less :
  • Rebate u/s 87A in case total income of the resident individual taxpayer does not exceed ? 3.5 lakhs, tax relief on Actual Tax payable for income upto ? 3.5 lakhs or, ? 2500 (whichever is lower)

Note: The income chargeable to tax rate shall be after all admissible deductions.

Income Tax Slab Rate for the F.Y. 2017-18 (A.Y. 2018-19) are:

 

I. Income Tax Slab for Indian Individuals

 

 

Income Tax Slab for Individuals less than 60 years for F.Y. 2017-18 ( For Male)

Income Slab(s) Income Tax Rate for AY 2018-19 (F.Y. 2017-18)
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A (if Total Income Up to Rs 3,50,000)
Add: Surcharge and EC & SHEC

Income Tax Slab for Individuals less than 60 years for F.Y. 2017-18 ( For Female)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A (if Total Income Up to Rs 3,50,000)
Add: Surcharge and EC & SHEC

Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for F.Y. 2017-18 (Both Male and Female)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 3,00,000 Nil
From 3,00,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A (if Total Income Up to Rs 3,50,000)
Add: Surcharge and EC & SHEC

Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For F.Y. 2017-18 (Both Male and Female)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 5,00,000 Nil
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC
How to Calculate Income Tax? Click here

 

II. Income Tax Slabs For Non-Residents

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

Please note : Rebate u/s 87A and Age-wise slab rate as discussed above in case of resident individual are not available to Non-Residents.

III. Income Tax Slabs For Hindu Undivided Family(HUF)

Income Tax Slab for AY 2018-19 for HUF (F.Y. 2017-18)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

IV. Income Tax Slabs For Body of Individuals(BOI)

IncomeTax Slab for BOI for F.Y. 2017-18

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

V. Income Tax Slabs For Association of Person(AOP)

Income Tax Slab for AOP for F.Y. 2017-18. Mention below below AOP income tax rates 2018-19

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

VI. Income Tax Rate for Firms and LLP

A firm /LLP is taxable at flat rate of 30 percent for the F.Y. 2017-18 (A.Y. 2018-19).
Add: Surcharge and EC & SHEC

VII. Income Tax Rate for Indian Company

For F.Y.2017-18( A.Y. 2018-19) the income tax slab for Indian Company. Mentioned below is the income tax rate for AY 2018-19 for companies.

Total Turnover or Gross Receipts (Rs.) Rate of Income Tax
Amount does not exceed Rs.50 crore, in the previous year 2015-16 25%
Amount exceeds Rs.50 crore 30%
Add: Surcharge and EC & SHEC

VIII. Income Tax Rate for Foreign Company

A foreign company is taxable at flat rate of 40 percent for the F.Y. 2017-18 ( A.Y. 2018-19).
Add: Surcharge and EC & SHEC

IX. Income Tax Rate for Co-operative Societies

For F.Y.2017-18( A.Y. 2018-19 ) the new income tax slab 2018-19 for co-operative society

Income (Rs) Rate of Income Tax
Upto 10,000 10%
From 10,001-20,000 20%
Above 20,000 30%
Add: Surcharge and EC & SHEC

X. Income Tax Rate for Local Authorities

Local authorities are taxable at flat rate of 30 percent for the F.Y. 2017-18( A.Y. 2018-19).
Add: Surcharge and EC & SHEC

Surcharge : The amount of income-tax shall be increased by a surcharge at the rate specified in the table, where total income exceeds the specified amount:

Surcharge Rates for 0-Rs.50 lakh Rs.50 lakh - Rs.1 crore Rs.1 crore - Rs.10 crore Above Rs.10 crore
Individual(Men, Female, NRI) /HUF /AOP /BOI /other Artificial Juridical person Nil 10% 15% 15%
Firm/Co-Operative Society/local authority Nil Nil 12% 12%
Domestic Company Nil Nil 7% 12%
Foreign Company Nil Nil 2% 5%

EC & SHEC

Education Cess(EC) : The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at 2 percent of income tax and surcharge.

Secondary & Higher Education Cess(SHEC) : The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at 1 percent of income tax 2018-19 and surcharge.

Rebate under Section 87A : Section 87A of the Act states that if a resident individual's total income does not exceed Rs. 3.5 lakhs then the individual will get benefit of rebate. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.

Prior to the union budget 2017, it was on the taxable income up to INR 5 lakh and the benefit was of Rs. 5000/-.


What are the Income Tax Slab for F.Y. 2016-17?

 

For F.Y. 2016-17 ( A.Y. 2017-18) the Income Tax Slab for various persons-

I. Income Tax Slab for Indian Individuals

 

 

Income Tax Slab for F.Y.2016-17 for individuals (Both Male & Female) below the age of 60 years:

Income Slab(Rs.) Income Tax Rate for F.Y. 2016-17
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A
Add: Surcharge and EC & SHEC

Income Tax Slab for F.Y.2016-17 for individuals (Both Male & Female) more than or equal to 60 years but less than 80 years

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 3,00,000 Nil
From 3,00,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A
Add: Surcharge and EC & SHEC

Income Tax Slab for F.Y.2016-17 for individuals (Both Male & Female) 80 year or more than 80 years

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 5,00,000 Nil
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

II. Income Tax Slab for F.Y.2016-17 for NRI's

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

III. Income Tax Slabs for F.Y. 2016-17 for HUF/AOP/BOI

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

IV. Income Tax Rate for Firms/ LLP/Indian Company/Local Authority

Income tax would be at a flat rate of 30 percent for the F.Y. 2016-17 (A.Y. 2017-18).
Add: Surcharge and EC & SHEC

V. Income Tax Rate for Foreign Company

A foreign company is taxable at flat rate of 40 percent for the F.Y. 2016-17 (A.Y. 2017-18).
Add: Surcharge and EC & SHEC

VI. Income Tax Rate for Co-operative Societies

For F.Y.2016-17, A.Y. 2017-18 the income tax slab for co-operative society

Income (Rs) Rate of Income Tax
Upto 10,000 10%
From 10,001-20,000 20%
Above 20,000 30%
Add: Surcharge and EC & SHEC

Notes:

Surcharge : The amount of income-tax shall be increased by a surcharge at the rate specified in the table, where total income exceeds the specified amount:

Surcharge Rates for 0-Rs.1 crore Rs.1 crore- Rs.10 crore Above Rs.10 crore
Individual(Men, Female, NRI)/HUF /AOP /BOI /other Artificial Juridical person Nil 15% 15%
Firm/Co-Operative Society/local authority Nil 12% 12%
Domestic Company Nil 7% 12%
Foreign Company Nil 2% 5%

EC & SHEC

Education Cess(EC) : The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at 2 percent of income tax and surcharge.

Secondary & Higher Education Cess(SHEC) : The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at 1 percent of income tax and surcharge.

Rebate under Section 87A : Section 87A of the Act states that if an individual's total income does not exceed Rs. 5 lakhs then the individual will get benefit of rebate. The amount of rebate shall be 100% of income-tax or Rs. 5,000, whichever is less.


 

What has changed in the Income Tax Slab in F.Y. 2018-19 in comparison to F.Y. 2017-18?

The only change in Income Tax Slab in F.Y. 18-19 is-

Cess - Secondary and Higher Education Cess has been replaced with Health and Education Cess.

Further the cess rate Increased to 4% as compare to 3% in F.Y. 17-18.


What has changed in the Income Tax Slab in F.Y. 2017-18 in comparison to F.Y. 2016-17?

The changes in Income Tax Slab in F.Y. 2017-18 are-

  • Income Tax Slab Reduced : New Tax slab rates for all resident individuals, NRIs, HUF, AOP, BOI and Artificial juridical persons reduced from 10% to 5%.
  • Reduction in relief under section 87A : The rebate under section 87A reduced.In F.Y.2017-18, rebate of Rs.2,500 is available to resident individuals whose total income does not exceed Rs.3,50,000. Earlier,Section 87A provided a relief up to Rs.5,000 to a resident individual if his total income did not exceed Rs.5,00,000.
  • Surcharge on income above Rs.50 lakhs : For F.Y. 2016-17 surcharge used to be there when income exceeded Rs.1 crore in case of an individual, HUF, AOP, BOI or artificial juridical person. For F.Y. 2017-18, the surcharge has become 10% on the income of individual exceeding 50 lakhs but less than 1 crore.
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I am salaried employee, which income tax slab is applicable on me?

For a salaried employee the income tax slab for individuals will be applicable.Choose the correct table according to your age.Please note there is no difference in the tax slab based on gender.


Which income tax slab rates would be applicable if I am filing my Income Tax Return for F.Y. 2016-17?

For calculating your income tax rate for F.Y. 2016-17, you need to check the Income Tax Slab for F.Y. 2016-17.


How to calculate my Income Tax amount from the Income Tax Slab?

Let us take example of Ms. Ruchi, age 29 years with an income of Rs.10,50,000, income tax deduction under section 80C Rs.150000 to understand how to calculate the income tax amount for F.Y 18-19.

First we will check the applicable income tax slab, in her case the first slab for individuals less than 60 years would be applicable.
Her income to be considered for calculating the Income tax amount =
Total Income - Income Tax Deductions
10,50,000 - 1,50,000 = 9,00,000

Now,

Income (Rs.) Income Tax Rates Tax Calculation Income Tax Payable(Rs.)
Upto 2,50,000 Nil 0 0
2,50,000-5,00,000 5% 5% of 2,50,000 12,500
5,00,000- 10,00,000 20% 20% of 4,00,000 (9,00,000-5,00,000) 80,000
TOTAL 92,500

Calculation of total amount of tax payable

Income Tax Amount Rs, 92,500
Add : [email protected]% on Income Tax Rs. 3700
Total Income Tax Payable Rs. 96,200
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FAQ's

 

Which ITR Form should I file for FY 2018-19 (AY 2019-20)?

For the FY 2018-19 (AY 2019-20) the ITR forms notification has been issued by CBDT on 01 April 2019. For more details on ITR forms, their applicability and changes brought this Financial Year. Read here.


Why Income Tax Slab?

India has a system of direct taxation where rates vary depending on age and income criteria. Thus, it becomes crucial to specify such criteria of income for various age groups so fixed, known as slabs. For resident individuals there are 3 slabs prevailing in our country starting with

  • For those aged below 60 Years
  • Those who are 60 or above in age but below 80 years known as Senior Citizens
  • And, Finally those who are above 80 Years of age termed as Super Senior citizens

Comparison between Tax Slabs of FY 2018-19(AY 2019-20) and FY 2017-18(18-19)?

The slab rates in Financial Year 2018-19 have been kept unchanged as compared with slabs of Financial Year 2017-18. But, other important changes can be enlisted as

1. Increase in cess

FY 2018-19 FY 2017-18
Cess Health and Education Cess @ 4% Education Cess and Secondary & Higher Education Cess @ 3%
The impact of an increase in cess can be understood with the help of below table:
Income (Rs.) Cess in F.Y 17-18 Cess in F.Y 18-19 Increase in Liability
If your income is Rs. 25 Lakhs 16875 22500 5625
If your income is Rs. 8 lakhs 2175 2933 725
If your income is 5 lakhs 375 500 125
2. Introduction of Standard Deduction

FY 2018-19 FY 2017-18
Standard Deduction of Rs 40,000 to salaried employees Yes No
Travel and Medical Reimbursement No Yes
Now, Let's see the impact of Standard Deduction on our Cess Liability in F.Y 18-19:
Income (Rs.) Cess in F.Y 17-18 Cess in F.Y 18-19 Increase in Liability
If your income is Rs. 25 Lakhs 16567 22020 5453
If your income is Rs. 8 lakhs 1970 2580 610
If your income is 5 lakhs 324 420 96

Note : In the above calculation, benefit of Rs. 34200 (Transport and Medical Reimbursement) has been provided in F.Y 17-18 and 40,000 standard deduction in F.Y. 18-19.

3. Increase in Corporate Tax Rate

FY 2018-19 FY 2017-18
Corporate Tax Rate for companies having turnover upto Rs 250 crore in FY 2016-17 25% 30%

For more changes brought by Finance Act 2018, you can read Tax Changes Affecting Your Life From April 2018


Which Finance Act applies to Financial Year 2018-19 or Assessment Year 2019-20?

Finance Act 2018 is applicable to Financial Year 2018-19 or Assessment Year 2019-20. Which means for Income Tax returns to be filed till the due date of 31st July 2019 for the income earned between 1st April 2018 to 31st March 2019, Finance Act 2018 shall apply.


While filing the return for FY 2018-19 (AY 2019-20) in July 2019, which income am I required to disclose?

For the Financial Year 2018-19 (AY 2019-20) you are required to disclose income earned between 1st April 2018 to 31st March 2019.


Conclusion:

The current income tax slabs 2018-19 are for anyone filing their Income Tax Return in 2018 i.e. for F.Y.2017-18 (A.Y 2018-19). After reading this article, you must have understood that your ITR slab AY 2018-19 doesn’t just depend on your income. It also depends on your age , status and what all deductions and exemptions you have taken. Deductions and exemptions can knock you into a lower tax slab, reducing your tax liability (or increasing the size of your tax refund) in the process.

That’s why it’s in your interest to make sure that you’re taking advantage of all the income tax provisions for which you’re eligible, whether you use tax preparation software, seek help from a CA or go the DIY route on Income Tax portal.

File ITR Support Questions? Visit the Support Center, or get in touch: +91 9660-99-66-55