Each year income tax rates are introduced by the finance minister in the union budget. Income is taxed based on the category of taxpayers. For example, the income of an individual is taxed at a slab rate whereas the income of the company is taxed at a fixed rate. The taxpayer needs to pay taxes and file ITR every year. Below are the tax rates applicable for income earned during the FY 2018-19/ AY 2019-20.
Tax Slab Rates for AY 2019-20: Individuals/ HUFs (Below the age of 60 years)
|
Taxable Income |
Tax Rate |
|
Upto Rs. 2,50,000 |
Nil |
|
Rs. 2,50,000 to Rs. 5,00,000 |
5% |
|
Rs. 5,00,000 to Rs. 10,00,000 |
20% |
|
Above Rs. 10,00,000 |
30% |
|
Surcharge Slab if taxable income |
Rate |
|
Rs. 50,00,000 to Rs. 1,00,00,000 |
10% |
|
Above Rs. 1,00,00,000 |
15% |
|
Health & Education Cess |
4% on total of income tax+surcharge |
|
Rebate u/s 87A for Individuals: Rs. 2,500 or 100% of tax whichever is less- if total income is less than Rs. 3,50,000 |
|
Tax Slab Rates for AY 2019-20: Individuals/ HUFs ( Aged between 60 years to 80 years)
|
Taxable Income |
Tax Rate |
|
Upto Rs. 3,00,000 |
Nil |
|
Rs. 3,00,000 to Rs. 5,00,000 |
5% |
|
Rs. 5,00,000 to Rs. 10,00,000 |
20% |
|
Above Rs. 10,00,000 |
30% |
|
Surcharge Slab if taxable income |
Rate |
|
Rs. 50,00,000 to Rs. 1,00,00,000 |
10% |
|
Above Rs. 1,00,00,000 |
15% |
|
Health & Education Cess |
4% on total of income tax+surcharge |
|
Rebate u/s 87A for Individuals: Rs. 2,500 or 100% of tax whichever is less- if total income is less than Rs. 3,50,000 |
|
Tax Slab Rates for AY 2019-20: Individuals/ HUFs (Aged above 80 years)
|
Taxable Income |
Tax Rate |
|
Upto Rs. 5,00,000 |
Nil |
|
Rs. 5,00,000 to Rs. 10,00,000 |
20% |
|
Above Rs. 10,00,000 |
30% |
|
Surcharge Slab if taxable income |
Rate |
|
Rs. 50,00,000 to Rs. 1,00,00,000 |
10% |
|
Above Rs. 1,00,00,000 |
15% |
|
Health & Education Cess |
4% on total of income tax+surcharge |
Income chargeable at special rates
Although your total income is taxed as per the slab rates mentioned above, there are certain incomes which are taxed at special rates:
|
Nature of income |
Tax Rate |
|
Short term capital gains from the sale of assets other than shares and mutual funds |
Income tax slab rates as mentioned above |
|
Long term capital gains from the sale of assets other than shares and mutual funds |
20% + surcharge and cess |
|
Short term capital gains from the sale of stocks and equity mutual funds |
15% + surcharge and cess |
|
Long term capital gains from the sale of stocks and equity mutual funds |
Up to Rs. 1,00,000 it is exempt. 10% without Indexation + surcharge and cess. |
|
Short term capital gains from the sale of debt mutual funds |
Income tax slab rates as mentioned above |
|
Long term capital gains from the sale of debt mutual funds |
20% with indexation + surcharge and cess |
Income chargeable at Fixed Rates
Tax rates applicable to Partnership Firm (Including LLP)
Partnership Firm/ LLP is taxed at a fixed rate of 30%. Surcharge at the rate of 12% of such tax if total income exceeds Rs. 1,00,00,000. Health & Education Cess is levied @ 4% on the amount of income tax plus surcharge.
Tax rates applicable to Domestic Companies
A domestic company is taxed at a fixed rate of 30%. However, the tax rate would be 25% if turnover or gross receipt of the company does not exceed Rs. 250 crore in the previous year 2016-17.
The surcharge is applicable :
- @7% of such tax, where the total income exceeds Rs. 1 crore rupees but not exceeding Rs. 10 crores.
- @12% of such tax, where the total income exceeds Rs. 10 crores.
Health & Education cess is levied @ 4% on the amount of income tax plus a surcharge.
FAQs
It is the amount that is levied upon the tax payable and not on the income that is generated. In other words, it is a tax that is levied upon the general tax.
For example: if an individual has generated an income of INR 100 over which the tax payable is INR 30, then the surcharge would be 10% of INR 30.
1. Calculate your Gross Total Income (GTI)
2. Reduce the deductions under sections 80C to 80U
3. Calculate your Tax Payable as per Income Tax slabs
4. Deduct the amount of rebate allowed
The Financial Year is the year which begins on 1st April and ends on 31st March. It is the year in which income is earned by the taxpayer. Assessment Year is a year immediately following the Financial Year. The taxpayer needs to file Income Tax Rate not in the year in which he/she earns the income but after the end of that year i.e, in the Assessment Year.
