Income Tax Slab for Financial Year

Income Tax Slab for Financial Year 2018-19 and 2019-20

This article discusses the different income tax rates that apply to taxpayers (individuals and companies) depending on the various categories in which they are categorized for the Financial Year 2018-19 and 2019-20 (The Assessment Year 2019-20 and 2020-21 respectively).

Financial Year 2018-19 and Assessment Year 2019-20 – Income Tax Slab

For individual residents below the age of 60 years (i.e., born on or after April 1, 1959) or any non-resident individual, Hindu undivided family or HUF, a body of individuals, an association of persons, or an artificial judicial person.

  1. When the total income is less than Rs. 2,50,000 – The tax rate is nil.
  2. When the total income lies between the income slab of Rs. 2,50,000 and Rs. 5,00,000 – The tax rate is 5% of the amount by which it exceeds Rs. 2,50,000.
  3. When the total income lies between the income slab of Rs. 5,00,000 and Rs. 10,00,000 – The tax rate is 20% of the amount by which it exceeds Rs. 5,00,000.
  4. When the total income is more than the income slab of Rs. 10,00,000 – The tax rate is 30% of the amount by which it exceeds Rs. 10,00,000.

Surcharge: 10% of the income tax where total income is within Rs. 50 lakhs Rs 1 crore. The surcharge is 15% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

For an individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year (i.e., born on or after April 1, 1939, but before April 1, 1959).

  1. When the total income is less than Rs. 3,00,000 – The tax rate is nil.
  2. When the total income lies between the income slab of Rs. 3,00,000 and Rs. 5,00,000 – The tax rate is 5% of the amount by which it exceeds Rs. 3,00,000.
  3. When the total income lies between the income slab of Rs. 5,00,000 and Rs. 10,00,000 – The tax rate is 20% of the amount by which it exceeds Rs. 5,00,000.
  4. When the total income is more than the income slab of Rs. 10,00,000 – The tax rate is 30% of the amount by which it exceeds Rs. 10,00,000.

Surcharge: 10% of the income tax where total income is within Rs. 50 lakhs Rs 1 crore. The surcharge is 15% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

For an individual resident who is 80 years or more at any time during the previous year (i.e., born before April 1, 1939).

  1. When the total income is less than Rs. 5,00,000 – The tax rate is nil.
  2. When the total income lies between the income slab of Rs. 5,00,000 and Rs. 10,00,000 – The tax rate is 20% of the amount by which it exceeds Rs. 5,00,000.
  3. When the total income is more than the income slab of Rs. 10,00,000 – The tax rate is 30% of the amount by which it exceeds Rs. 10,00,000.

Surcharge: 10% of the income tax where total income is within Rs. 50 lakhs Rs 1 crore. The surcharge is 15% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Co-operative Society

  1. When the total income is less than Rs. 10,000 – The tax rate is 10% of the total income.
  2. When the total income lies between the income slab of Rs. 10,000 and Rs. 20,000 – The tax rate is 20% of the amount by which it exceeds Rs. 10,000.
  3. When the total income is more than the income slab of Rs. 20,000 – The tax rate is 30% of the amount by which it exceeds Rs. 20,000.

Surcharge: The surcharge is 12% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Partnership Firm

When a firm is assessed to be a firm and including LLPs, they are taxable at a 30% rate.

Surcharge: The surcharge is 12% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Local Authority

The taxable rate for a local authority is 30%.

Surcharge: The surcharge is 12% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Domestic Company

A domestic company is taxable at 30%. However, the tax rate is 25% if turnover or gross receipt of the company during the previous year 2016-17 does not exceed Rs. 400 crores.

Surcharge: 7% of the income tax where total income is within Rs. 1 crore and Rs 10 crores. The surcharge is 12% of the income tax where the total income exceeds Rs. 10 crores. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge. 

Foreign Company (Companies other than Domestic Companies)

The tax rate is 40% for royalty received from the Government or any Indian concern pursued by an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in furtherance of an agreement made after February 29, 1964, but before April 1, 1976, and where such agreement has, in any of the above cases, been approved by the Central Government. In contrast, the tax rate is 50% for any other income.

Surcharge: 2% of the income tax where total income is within Rs. 1 crore and Rs 10 crores. The surcharge is 5% of the income tax where the total income exceeds Rs. 10 crores. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Financial Year 2019-20 and Assessment Year 2020-21 – Income Tax Slab

For individual residents below the age of 60 years (i.e., born on or after April 1, 1960) or any non-resident individual, Hindu undivided family or HUF, a body of individuals, an association of persons, or an artificial judicial person.

  1. When the total income is less than Rs. 2,50,000 – The tax rate is nil.
  2. When the total income lies between the income slab of Rs. 2,50,000 and Rs. 5,00,000 – The tax rate is 5% of the amount by which it exceeds Rs. 2,50,000.
  3. When the total income lies between the income slab of Rs. 5,00,000 and Rs. 10,00,000 – The tax rate is 20% of the amount by which it exceeds Rs. 5,00,000.
  4. When the total income is more than the income slab of Rs. 10,00,000 – The tax rate is 30% of the amount by which it exceeds Rs. 10,00,000.

Surcharge: 10% of the income tax where total income is within Rs. 50 lakhs Rs 1 crore. The surcharge is 15% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

For an individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year (i.e., born on or after April 1, 1940, but before April 1, 1960).

  1. When the total income is less than Rs. 3,00,000 – The tax rate is nil.
  2. When the total income lies between the income slab of Rs. 3,00,000 and Rs. 5,00,000 – The tax rate is 5% of the amount by which it exceeds Rs. 3,00,000.
  3. When the total income lies between the income slab of Rs. 5,00,000 and Rs. 10,00,000 – The tax rate is 20% of the amount by which it exceeds Rs. 5,00,000.
  4. When the total income is more than the income slab of Rs. 10,00,000 – The tax rate is 30% of the amount by which it exceeds Rs. 10,00,000.

Surcharge: 10% of the income tax where total income is within Rs. 50 lakhs Rs 1 crore. The surcharge is 15% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

For an individual resident who is 80 years or more at any time during the previous year (i.e., born before April 1, 1939).

  1. When the total income is less than Rs. 5,00,000 – The tax rate is nil.
  2. When the total income lies between the income slab of Rs. 5,00,000 and Rs. 10,00,000 – The tax rate is 20% of the amount by which it exceeds Rs. 5,00,000.
  3. When the total income is more than the income slab of Rs. 10,00,000 – The tax rate is 30% of the amount by which it exceeds Rs. 10,00,000.

Surcharge: 10% of the income tax where total income is within Rs. 50 lakhs Rs 1 crore. The surcharge is 15% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Co-operative Society

  1. When the total income is less than Rs. 10,000 – The tax rate is 10% of the total income.
  2. When the total income lies between the income slab of Rs. 10,000 and Rs. 20,000 – The tax rate is 20% of the amount by which it exceeds Rs. 10,000.
  3. When the total income is more than the income slab of Rs. 20,000 – The tax rate is 30% of the amount by which it exceeds Rs. 20,000.

Surcharge: The surcharge is 12% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Partnership Firm

When a firm is assessed to be a firm and including LLPs, they are taxable at a 30% rate.

Surcharge: The surcharge is 12% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Local Authority

The taxable rate for a local authority is 30%.

Surcharge: The surcharge is 12% of the income tax where the total income exceeds Rs. 1 crore. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Domestic Company

A domestic company is taxable at 30%. However, the tax rate is 25% if turnover or gross receipt of the company during the previous year 2017-18 does not exceed Rs. 400 crores.

Surcharge: 7% of the income tax where total income is within Rs. 1 crore and Rs 10 crores. The surcharge is 12% of the income tax where the total income exceeds Rs. 10 crores. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

Foreign Company (Companies other than Domestic Companies)

The tax rate is 40% for royalty received from the Government or any Indian concern pursued by an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in furtherance of an agreement made after February 29, 1964, but before April 1, 1976, and where such agreement has, in any of the above cases, been approved by the Central Government. In contrast, the tax rate is 50% for any other income.

Surcharge: 2% of the income tax where total income is within Rs. 1 crore and Rs 10 crores. The surcharge is 5% of the income tax where the total income exceeds Rs. 10 crores. However, marginal relief is given to the surcharge.

Education Cess: 4% of the tax levied along with the surcharge.

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