Rate of Income Tax for A.Y. 2018-19

Rate of Income-tax applicable to various person for A.Y. 2018-19

0
7870

Individual & HUF

For the purpose of tax rates, an individual is divided into 3 (three) categories:

  • Senior Citizen
  • Super Senior Citizen
  • Other
Senior Citizen

Senior Citizen means an individual who is resident in India and is of at least 60 years of age (but less than 80 years of age) at any time during the relevant previous year. (i.e., a resident person, male or female, born during 02-04-1938 and 02-04-1958)

Tax Rates
Total Income RangeRate of Income-tax
Up to ₹ 3,00,000Nil
₹ 3,00,001 to ₹ 5,00,0005% of the amount by which the total income exceeds ₹ 3,00,000
₹ 5,00,001 to ₹ 10,00,000₹ 10,000 + 20% of the amount by which the total income exceeds ₹ 5,00,000
₹ 10,00,001 and above₹ 1,10,000 + 30% of the amount by which total income exceeds ₹ 10,00,000
Super Senior Citizen

Super Senior Citizen means an individual who is resident in India and is of at least 80 years of age at any time during the relevant previous year. (i.e., a resident person, male or female, born before 02-04-1938)

Tax Rates
Total Income RangeRate of Income-tax
Up to ₹ 5,00,000Nil
₹ 5,00,001 to ₹ 10,00,00020% of the amount by which the total income exceeds ₹ 5,00,000
₹ 10,00,001 and above₹ 1,00,000 + 30% of the amount by which total income exceeds ₹ 10,00,000
Other

It includes:

both male and female

both resident and non-resident

Tax Rates
Total Income RangeRate of Income-tax
Up to ₹ 2,50,000Nil
₹ 2,50,001 to ₹ 5,00,0005% of the amount by which the total income exceeds ₹ 2,50,000
₹ 5,00,001 to ₹ 10,00,000₹ 12,500 + 20% of the amount by which the total income exceeds ₹ 5,00,000
₹ 10,00,001 and above₹ 1,12,500 + 30% of the amount by which total income exceeds ₹ 10,00,000
Hindu Undivided Family (HUF) is also taxable at the same rate at which an individual (other category) is taxable.
Rebate u/s 87

Applicable to

Also Read  Income from Other Sources

Resident Individual Only

Resident individual may be male, female, senior citizen.

Conditions to be satisfied

Total income of the assessee does not exceed ₹ 3,50,000

Amount of Rebate

Lower of the following:

  1. ₹ 2,500/-; or
  2. 100% of tax liability before cess

Senior Citizen is always resident.

Surcharge, Marginal Relief & Cess

Surcharge

Surcharge at the following rate is also payable on tax as computed above after rebate u/s 87A

Total IncomeRate of Surcharge
Total income does not exceed ₹ 50 lacsNil
Total income exceeds ₹ 50 lacs but does not exceed ₹ 1 crore10% of tax after rebate
Total income exceeds ₹ 1 crore15% of tax after rebate

Surcharge is subject to marginal relief.

Marginal Relief

To provide relaxation from levy of surcharge to a taxpayer where the total income exceeds marginally above ₹ 50 lakh or ₹ 1 crore, the concept of marginal relief is designed.

Condition:

Total income exceeds ₹ 50,00,000 (or ₹ 1 crore)

Relief:

Marginal relief is provided to ensure that the additional income tax payable including surcharge on excess of income over ₹ 50,00,000 or ₹ 1,00,00,000 is limited to the amount by which the income is more than ₹ 50,00,000 or ₹ 1,00,00,000

Marginal relief = Calculated Surcharge – 70% (Income – ₹ 50,00,000)] (if positive)

Or

Marginal relief = [(Income tax + surcharge) on income] – [(Income tax on ₹ 50,00,000) + (Income – ₹ 50,00,000)]

Similar relief shall also be provided where income exceeds marginally above ₹ 1 crore. In that case, the aforesaid equation shall be changed accordingly

Also Read  Profits & Gains of Business or Profession (Part II)

Education Cess & SHEC

Education Cess @ 2% of tax liability after surcharge is also payable

SHEC @ 1% of tax liability after surcharge is also payable.

Rounded Off u/s 288B

The tax calculated on the total income should be rounded off to the nearest ₹ 10. Amount of tax (including TDS or advance tax), interest, penalty, etc. and refund shall be rounded off to the nearest ₹ 10.
If the last figure in the ‘rupee element’ is ₹ 5 or more, it should be rounded off to the next higher amount, which is a multiple of ₹ 10. The ‘paise’ element should be ignored.

Firm

Firm (including Limited Liability Partnership) is taxable @ flat rate of 30%.

Surcharge

Surcharge @ 12% of tax liability is also payable if total income exceeds ₹ 1 crore. The surcharge is, however, subject to marginal relief [Marginal Relief as discussed earlier]

Education Cess & SHEC

Education Cess & SHEC @ 3% of tax liability after surcharge is also payable.

There is no basic exemption limit in case of firm and LLP

Company

CompanyTax Rate
In the case of a domestic company
– Where its total turnover or gross receipts during the previous year 2015-16 does not exceed Rs.50 crore25%
In other case30%
In the case of a foreign company40%
Surcharge
Total IncomeDomestic CompanyForeign Company
If total income exceeds Rs.10 crore12%5%
If income exceeds Rs.1 crore but does not exceed Rs.10 crore7%2%
If income does not exceed Rs.1 croreNilNil
Marginal Relief

Available at both points (i.e., income exceeds ₹ 1,00,00,000 or ₹ 10,00,00,000)

Also Read  Clubbing of Income
Education Cess & SHEC

2% of tax liability after surcharge and 1% of tax liability after surcharge respectively.

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