Income Tax Rates for the A.Y 2019-20 (Tax Slab Rates for Financial Year 2018-19)

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Income Tax Slab For ay 2019-20. In the previous articles, we have given What are the 5 Heads of Income Tax and Computation of Total Income of a Person. Today we are providing income tax rates applicable for the assessment year 2019-20 (इनकम टैक्स स्लैब 2019-20). In the 2018 budget, finance minister Arun Jaitley had left the income tax slabs untouched and replaced the education cess of 3% with a health and education cess of 4%. In FY 2018-19, income up to ₹2.5 lakh is not taxable for individuals below the age of 60. Those above 60 years but less than 80 years enjoy tax-free income of up to ₹3 lakh while for those above 80 the tax-free income goes upto ₹5 lakh. Besides the 4% health and education cess on income tax, there is also an additional surcharge of 10% for those in the ₹50 lakh to ₹1 crore income bracket while for those whose income exceeds ₹1 crore the surcharge goes up to 15% of the income tax. It was announced in the 2019 interim budget that incomes of up to Rs.5 lakh will be exempted from tax.

Income Tax Rates for the A.Y 2019-20 (Tax Slab Rates for F.Y 2018-19) has given below. Check Income Tax Rates In case of other Individual /HUF/Association of Persons(AOP)/Body of Individuals/Artificial Juridical Person,  In case of Senior citizen (Age : 60 years or more but less than 80 years), In case of Super Senior citizen (Age : 80 and More), Firm or Limited Liability Partnership (LLP), Local authority, Co-operative society and Company  for the Assessment Year 2019-20 that means for the Financial Year 2018-19 . You can also check Income Tax Slab rate examples which included the calculation  of Surcharge, Marginal Relief, Health &Education Cess.

Income Tax Rates for the A.Y 2019-20 i.e. F.Y 2018-19

Income Tax in India is to be charged at the rates fixed for the year by the Annual Finance Act.  Section 2 of the Finance Act, 2018 read with Part I of the First Schedule to the Finance Act, 2018, seeks to specify the rates at which income-tax is to be levied on income chargeable to tax for the assessment year 2018-19.

Part II lays down the rate at which tax is to be deducted at source during the financial year 2018-19 from income subject to such deduction under the Income-tax Act, 1961;

Part III lays down the rates for charging income-tax in certain cases, rates for deducting income-tax from income chargeable under the head “salaries” and the rates for computing advance tax for the financial year 2018-19.

Part III of the First Schedule to the Finance Act, 2018 will become Part I of the First Schedule to the Finance Act, 2019 and so on.

Income Tax Slab Rates for the F.Y 2018-19 (Below 60 Age)

The slab rates applicable for A.Y. 201 9-20 are as follows:

In case of other Individual /HUF/Association of Persons/Body of Individuals/Artificial Juridical Person

Total Income Range Rates of Income Tax
Up to Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs. 5,00,000 5% of (Total Income – Rs. 2,50,000)
Rs. 5,00,001 to  Rs. 10,00,000 Rs. 12,500 + 20% of (Total income – ` 5,00,000)
Rs. 10,00,001 and above Rs. 1,12,500 + 30% of (Total income – ` 10,00,000)
born on or after 02-04-1959 or non-resident individual.

Income Tax Rates for the AY 2019-20 – Example 1

Mr. X has a total income of Rs. 12,00,000 comprising of his salary income and interest on fixed deposit. Compute his tax liability

SOLUTION

Computation of Tax liability Tax liability = Rs. 1,12,500 + 30% of Rs. 2,00,000 = Rs. 1,72,500

Tax liability :

Income Tax Rate Amount
First Rs. 2,50,000 Nil
Next Rs. 2,50,000 – Rs.5,00,000 @ 5% of Rs 2,50,000 Rs. 12,500
Next Rs 5,00,000 – Rs 10,00,000 @ 20% of Rs 5,00,000 Rs. 1,00,000
Balance i.e., Rs 12,00,000 minus Rs 10,00,000 @ 30% of Rs 2,00,000 Rs.60,000
  Rs. 1,72,500
   

It is to be noted that for a senior citizen (being a resident individual who is of the age of 60 years but not more than 80 years at any time during the previous year), the basic exemption limit is Rs. 3,00,000.

Further, resident individuals of the age of 80 years or more at any time during the previous year, being very senior citizens, would be eligible for a higher basic exemption limit of Rs. 5,00,000.

Therefore, the tax slabs for these assessees would be as follows –

Income Tax Rates for the A.Y. 2019-20 (F.Y. 2018-19) – Senior citizen

Income Tax Rates for the AY 2019-20 – In case of Senior citizen (Age : 60 years or more but less than 80 years)

Total Income Range Rates of Income Tax
Up to Rs. 3,00,000 Nil
Rs. 3,00,001 to Rs. 5,00,000 5% of (Total Income – ` 3,00,000)
Rs. 5,00,001 to Rs. 10,00,000 ` Rs. 10,000 + 20% of (Total income – ` 5,00,000)
Rs. 10,00,001 and above Rs. 1,10,000 + 30% of (Total income – ` 10,00,000)
Senior Citizen means an individual who is resident in India and is of at least 60 years of age at any time during the relevant previous year. (i.e., a resident person, male or female, born during 02-04-1939 and 02-04-1959)

Income Tax Rates for the A.Y. 2019-20 (F.Y. 2018-19) – Super Senior citizen

Individual/HUF/Association of Persons/Body of Individuals/Artificial Juridical Person

In case of Super Senior citizen (Age : 80 and More)

Total Income Range Rates of Income Tax
Up to Rs. 5,00,000 Nil
Rs. 5,00,001 to Rs. 10,00,000 20% of (Total income – ` 5,00,000)
Rs. 10,00,001 and above Rs. 1,00,000 + 30% of (Total income – ` 10,00,000)
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. any resident person, male or female, born before 02-04-1939).

Tax Slab Rates Firm or Limited Liability Partnership (LLP) A.Y 2019-20

A partnership firm (including limited liability partnership) is taxable at the rate of 30%

  • Surcharge : 12% of income-tax (if total income exceeds ₹ 1 crore otherwise Nil)
  • Marginal Relief: Available
  • Health &Education Cess: 4% of tax liability after surcharge

Income Tax Brackets for Local authority A.Y 2019-20 /

F.Y 2018-19

  • Income Tax Rates for the AY 2019-20 – On the whole of the total income 30%

Income Tax Rates for the Co-operative society F.Y 2018-19

(i) where the total income does not exceed Rs. 10,00,000 10% of the total income
(ii) where the total income exceeds Rs.10,000 but does not exceed Rs 20, 000 Rs 1,000 plus 20% of the amount by which the total income exceeds Rs 10,000
(iv) where the total income exceeds Rs. 20, 000 Rs. 3,000 plus 30% of the amount by which the total income exceeds Rs. 20,000

Income Tax Slab Rates for Company A.Y 2019-20

Company Rate
In the case of a domestic company
Where its total turnover or gross receipts during the previous year 2016-17 does not exceed Rs. 250

crore

25%
– In any other case 30%
In the case of a foreign company 40%

Surcharge

Total Income Domestic Company Foreign Company
If total income exceeds Rs. 10 crore 12% 5%
If income exceeds Rs. 1 crore but does not exceed Rs. 10 crore 7% 2%
If income does not exceed Rs 1 crore Nil Nil
  • Marginal Relief: Available at both points (i.e., income exceeds Rs. 1,00,00,000 or Rs. 10,00,00,000)
  • Health & Education Cess: 4% of tax liability after surcharge

Rebate u/s 87A

  • Applicable to: Resident Individual
  • Conditions to be satisfied: Total income of the assessee does not exceed ` 3,50,000.
  • Quantum of Rebate: Lower of the following:
    1. 100% of tax liability as computed above; or  (b) Rs. 2,500/-

Example

Compute rebate u/s 87A in the following cases:

Particulars Case 1 Case 2 Case 3 Case 4 Case 5 Case 6
Assessee Individual Individual Individual Senior Citizen Individual HUF
Residential

status

Resident Resident Resident Non – Resident Resident
Total Income Rs. 2,60,000 Rs. 3,12,000 Rs. 5,25,000 Rs. 3,40,000 Rs. 2,60,000 Rs. `2,65,000
Tax on above Rs. 500 Rs. 3,100 Rs. 17,500 Rs. 2,000 Rs. 500 Rs. 750
Rebate u/s

87A

Rs. 500 Rs. 2,500 Nil Rs. 2,000 Nil Nil
Reason Max. Limit Total income

exceeds Rs.  3.5 lacs

Assessee is non-resident Assessee is not

an individual

Tax after

rebate

Nil Rs. 600 Rs. 17,500 Nil Rs. 500 Rs. 750

Surcharge on tax after rebate u/s 87A

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

Total Income Rate of Surcharge
Total income does not exceed Rs. 50 lacs Nil
Total income exceeds Rs. 50 lacs but does not exceed  Rs. 1 crore 10% of tax after rebate
Total income exceeds Rs. 1 crore 15% of tax after rebate

Health & Education Cess

  • Applicable on: All assessee.
  • Rate of cess: 4% of Tax liability after Surcharge
  • Marginal Relief

Example: Compute tax liability of the assessee (52 years) whose total income is:

(Case 1) Rs. 49,90,000 (Case 2) Rs. 50,10,000; (Case 3) Rs. 60,00,000

Particulars Working Case 1 Case 2 Case 3
Tax liability before Rebate Rs. 2,50,000 × Nil Nil Nil Nil
Rs. 2,50,000 × 5% 12,500 12,500 12,500
Rs. 5,00,000 × 20% 1,00,000 1,00,000 1,00,000
Balance Income × 30% 11,97,000 12,03,000 15,00,000
Total 13,09,500 13,15,500 16,12,500
Less: Rebate u/s 87A As income exceeds ` 3,50,000 Nil Nil Nil
Liability [A] 13,09,500 13,15,500 16,12,500
Add: Surcharge B = [10% of (A)] Nil 1,31,550 1,61,250
Tax and surcharge payable 13,09,500 14,47,050 17,73,750

Analysis of case (1) and case (2)

Increase in income Rs. 20,000
Liability for surcharge increased Rs. 1,31,550

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

Condition: Total income exceeds Rs. 50,00,000 (or Rs. 1 crore)

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

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

Or

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

Now, computation of tax liability is made after considering marginal relief:

Particulars Working Case 1 (Rs) Case 2 (Rs) Case 3 (Rs)
Liability [A] 13,09,500 13,15,500 16,12,500
Add: Surcharge B = [10% of (A)] Nil 1,31,550 1,61,250
Tax and surcharge 13,09,500 13,09,500 17,73,750
Less: Marginal relief [(B)–{70%(50,10,000–50,00,000)}] Nil 1,24,550 Nil
Effective Surcharge [C] Nil 7,000 1,61,250
Liability after surcharge [A + C] 13,09,500 13,22,500 17,73,750
Add: Health & Education cess 4% of above 52,380 52,900 70,950
Total Rounded off u/s 288B 13,61,880 13,75,400 18,44,700

Taxpoint: The concept of marginal relief is not applicable in case of cess.

We hope with the help of this article, you know that income tax slabs  ( इनकम टैक्स स्लैब रेट) for individual, senior citizen, super senior citizen, limited liability partnership (LLP), co-operative society and company. We have also give complet details about rebate u/s 87A. Still, if you have any doubts regarding income tax rates for ay 2019-20 then you ask you doubts in our Forum. Our tax experts and members will try to help you. Also, you can download income tax calculator in excel format from our forum.

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