Budget 2019 Update: There is no change in the Income Tax Slabs for the Financial Year 2019-20 and the Income Tax Slabs which were applicable for Financial Year 2018-19 would continue to be applicable. The only difference is that the rebate allowed under Section 87A has been increased which would practically lead to No Tax being levied on income upto Rs. 5 Lakhs.
The Income Tax Slabs applicable for the Financial Year 2018-19 and Financial Year 2019-20 are as follows:
Income Tax Slab Rates for 2018-19 & 2019-20
The Income Tax Slab Rates are different for different categories of taxpayers.
The Income Tax Slab Rates can be divided in the following categories:-
A.INDIVIDUALS & HUF
- For Male & Female Individuals below 60 Years of Age and HUF
- For all Senior Citizen above 60 years of Age
- For all Super Senior Citizen above 80 years of Age
- Applicability of Surcharge
B. BUSINESSES
- Co-operative Society
- Firms, Local Authority & Domestic Company
C. Education Cess and SHEC
Income Tax Slab Rates
A. FOR INDIVIDUALS & HUF
The following Income Tax Slabs are applicable for the Financial Year 2018-19 i.e. Assessment Year 2019-20 and Financial Year 19-20 i.e. Assessment Year 20-21. Education Cess @ 4% shall be levied on the Tax computed using the Income Tax Rates given below while filing the Income Tax Return.
It is pertinent to note here that the Govt also provides Rebate under Section 87A for taxpayers having low Income. This rebate has been increased from Rs. 2,500 p.a. to Rs. 12,500 p.a. in the Budget 2019. Moreover, this Rebate is only available only to Resident Individuals whose Total Income does not exceed Rs. 5,00,000.
Recommended Read:
- Income Tax Rebate under Section 87A increased from Rs. 2,500 to Rs. 12,500
- Difference between Income Tax Deduction vs Rebate vs Relief
1. For Male & Female Individuals below 60 years of age & HUF
The following Income Tax Slab Rates are applicable for Financial Year 2017-18 and Financial Year 2018-19
| Income Tax Slabs | Income Tax Rates |
| Where Total Income does not exceed Rs. 2,50,000 | NIL |
| Where the Total Income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 | 5% of the Amount by which it exceeds Rs. 2,50,000 |
| Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | 20% of the Amount by which it exceeds Rs. 5,00,000 |
| Where the Total Income exceeds Rs. 10,00,000 | 30% of the Amount by which it exceeds Rs. 10,00,000 |
Recommended Read:
2. For all Senior Citizens above 60 years of Age
The following Income Tax Slab Rates are applicable for Senior Citizens for the Financial Year 2017-18 i.e. Assessment Year 2018-19 and Financial Year 2018-19 i.e. Assessment Year 2019-20
| Income Tax Slabs | Income Tax Rates |
| Where Total Income does not exceed Rs. 3,00,000 | NIL |
| Where the Total Income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 | 5% of the Amount by which it exceeds Rs. 3,00,000 |
| Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | 20% of the Amount by which it exceeds Rs. 5,00,000 |
| Where the Total Income exceeds Rs. 10,00,000 | 30% of the Amount by which it exceeds Rs. 10,00,000 |
Recommended Read:
3. For all Senior Citizens above 80 Years of Age
| Income Tax Slabs | Income Tax Rates |
| Where Total Income does not exceed Rs. 5,00,000 | NIL |
| Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | 20% of the Amount by which it exceeds Rs. 5,00,000 |
| Where the Total Income exceeds Rs. 10,00,000 | 30% of the Amount by which it exceeds Rs. 10,00,000 |
Computation of Age
If an Individual attains the age of 60 years or 80 years during the financial year, his age shall be regarded as 60/80 (as the case may be), for that whole Financial Year.
Surcharge to be levied if Income more than Rs. 50 Lakhs
If the Income of the Individual/ HUF/ AOP/ BOI is more than 50 Lakhs, surcharge would also be applicable. Surcharge would be applicable as per the below mentioned slabs:-
| Level of Income | Surcharge |
| Less than Rs. 50 Lakhs | NIL |
| More than Rs. 50 Lakhs but less than Rs. 1 Crores | 10% |
| More than Rs. 1 Crores | 15% |
It is pertinent to note here that Surcharge is not levied on the Income but is levied on the Income Tax so computed. The manner of computation of Surcharge has been very nicely explained in this article – Surcharge on Income Tax
After the computation of Total Tax Payable computed as per the Income Tax Slabs, the Balance Income Tax payable after the deduction of TDS as shown in Form 16/Form 16A and reflected in Form 26AS shall be payable vide Challan No. 280 in the form of Advance Tax in Installments before the specified Due Dates or else Interest on delay in payment of Income Tax would be liable to be paid.
B. SLABS FOR BUSINESS
The following Income Tax Slab Rates shall be applicable for the Assessment Year 2018-19 & Assessment Year 19-20 i.e Previous Year 2017-18 & Previous Year 18-19 .
1. For Co-operative Society
| Income Tax Slabs | Income Tax Rates |
| Where the Total Income does not exceed Rs. 10,000 | 10% of the Income |
| Where the Total Income exceeds Rs. 10,000 but does not exceed Rs. 20,000 | 20% of the Amount by which it exceeds Rs. 10,000 |
| Where the Total Income exceeds Rs. 20,000 | 30% of the Amount by which it exceeds Rs. 20,000 |
2. For Firms and Local Authority
Income Tax Slab Rates wont apply in this case and Tax @ 30% flat shall be computed on the Total Income.
Surcharge is also levied in case of Firms and Local Authorities as per the below mentioned schedule. The following schedule is applicable from Financial Year 2017-18 onwards
| Level of Income | Surcharge |
| Less than Rs. 1 Crore | No Surcharge |
| More than Rs. 1 Crores | 12% |
Surcharge @12% would also be levied on Tax in case the total income exceeds Rs. 1 Crore during the Financial Year. However, no Tax shall be levied in case the Income is less than Rs. 1 Crores.
- Recommended Read: Computation of Income Tax on Partnership Firms and LLP’s in India
3. For Domestic Companies
Income Tax on Domestic Companies is levied @ 25% for Domestic Companies with a Turnover of less than Rs. 250 Crores and @ 30% in case of companies with turnover over Rs.250 Crores. These reduced income tax rates are applicable from Financial year 2018-19 onwards.
Surcharge is also levied in case of Domestic Companies as per the below mentioned schedule. The following schedule is applicable from Financial Year 2017-18 onwards:
| Level of Income | Surcharge |
| Less than Rs. 1 Crore | No Surcharge |
| More than Rs. 1 Crore but less than Rs. 10 Crore | 7% |
| More than Rs. 10 Crores | 12% |
C. Education Cess and SHEC
Education Cess @ 2% and Secondary and Higher Education Cess @1% would also be levied on the Total Tax Computed (incl of Surcharge). This Cess is applicable for all categories of taxpayers mentioned above.
From Financial Year 2018-19, Education Cess and Higher Education Cess have been removed and they would not be levied. From Financial Year 2018-19 onwards, a flat 4% Cess by the name of Health and Education Cess would be levied.
