Latest Income tax rates for individuals for FY2018-19

What are the latest income tax rates? This is the first question we ask before we start computing or income tax liability. And this is the time of the year when income tax fever is at its peak and everyone is wondering how they can can save some money. FinVizer presents to you all the information about latest income tax rates, to save your time, effort and money. A look at the basics first:

What is income tax?

An income tax is a tax imposed on individuals i.e. (taxpayers) that varies with their respective income or profits (taxable income). The Income Tax Act 1961 is the law that governs the provisions for the income tax in India. Every person who earns an income above the minimum exemption limit is expected to pay tax. The word ‘person’ can refer to individuals, HUFs (Hindu Undivided Families), BOIs (Body of Individuals), local authorities, AOPs (Association of Persons), companies and other artificial judicial persons.

What is Gross Total Income?

Gross Total Income is defined as the total income under the heads of Salaries, Income from house property, Profits and gains of business or profession, Capital Gains or income from other sources before making any deductions.

What is Taxable Income?

The Income Tax Act of India provides various permissible deductions under multiple sections from 80C to 80U. Once we reduce the permissible deductions from the Gross Total Income, we get the Taxable Income. This is the number on which on your tax liability is determined.

What is my Tax Slab?

Taxable income is categorized into different groups on the basis of the amount of income. Each such group is known as a Tax Slab. The normal tax rates applicable to an individual will depend on the age of the individual. However, in case of a non-resident individual (NRI) the tax rates will also be same irrespective of his age. The Income Tax slab rates are different for different categories of taxpayers. We can divide Income Tax slab rates for the following categories:
1. Resident individual (Men & Women) below the age of 60 years. I.e. born on or after 1.4.1958 also called as the General (Non-senior citizens) Category.
2. Resident individual (Men & Women) of the age of 60 years or above but below the age of 80 (Resident senior citizen).
3. Resident individual (Men & Women) of the age of 80 years or above (Resident super senior citizen).

So what is the latest income tax rates applicable to me?

The following tables project the Income Tax Slab Rates for FY 2018-19 (Assessment Year 2019-20):

  1. Income Tax Slab for Individual (Men & Women) Tax Payers &HUF (Less Than 60 Years Old) for FY 2018-19:

Tax Rate (in %)

Income Range (in Rupees)

No tax

Zero – 2,50,000

5%

2,50,000-5,00,000

20%

5,00,000-10,00,000

30%

Above 10,00,000

 

Note: – Along with the applicable taxes, there are additional surcharges at below rates.

a) Surcharge:

  • 10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

  • 15% surcharge on income tax if the total income exceeds Rs.1 Cr.

b) Health and Education cess: 4% cess on income tax including surcharge. This Health and Education Cess replaced the earlier 2% Education Cess and 1% Secondary and Higher Education Cess from Budget 2018.

  1. Income Tax Slab for Senior Citizens (60 Years Old or More but Less than 80 Years Old Men & Women) for FY 2018-19:

Tax Rate (in %)

Income Range (in Rupees)

No tax

Income up to Rs 3,00,000

5%

Income from Rs 3,00,000 – Rs 5,00,000

20%

Income from Rs 5,00,000 – 10,00,000

30%

Income Above 10,00,000

a) Surcharge:

  • 10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.
  • 15% surcharge on income tax if the total income exceeds Rs.1 Cr.

b) Health and Education cess: 4% cess on income tax including surcharge.

  1. Income Tax Slab for Senior Citizens (80 Years Old or More Men & Women) for FY 2018-19:

Tax Rate (in %)

Income Range (in Rupees)

No tax

Income up to Rs 5,00,000*

20%

Income from Rs 5,00,000 – 10,00,000

30%

Income Above 10,00,000

a) Surcharge:

  • 10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.
  • 15% surcharge on income tax if the total income exceeds Rs.1 Cr.

b) Health and Education cess: 4% cess on income tax including surcharge.

So what changed from FY2017-2018 to FY2018-19? Comparisons of Income tax slab rates of Financial Year 2018 with Financial Year 2019

1) Income Tax Slab for Individual (Men & Women) Tax Payers &HUF (Less Than 60 Years Old):

Tax Rate (in %) FY2019

Tax Rate (in %) FY2018

Income Range (in Rupees)

No tax

No tax

Zero – 2,50,000

5%

5%

2,50,000-5,00,000

20%

20%

5,00,000-10,00,000

30%

30%

Above 10,00,000

Tax Rate (in %) FY2017

Tax Rate (in %) FY2018

Additional Tax

10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

15% surcharge on income tax if the total income exceeds Rs.1 Cr.

10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

15% surcharge on income tax if the total income exceeds Rs.1 Cr.

Surcharge

3% on total of income tax + surcharge.

4% cess on income tax including surcharge.

Cess

 

 

2) Income Tax Slab for Senior Citizens (60 Years Old or More but Less than 80 Years Old Men & Women):

Tax Rate (in %) FY2017

Tax Rate (in %) FY2018

Income Range (in Rupees)

No tax

No tax

Income up to Rs 3,00,000

5%

5%

Income from Rs 3,00,000 – Rs 5,00,000

20%

20%

Income from Rs 5,00,000 – 10,00,000

30%

30%

Income Above 10,00,000

 

Tax Rate (in %) FY2017

Tax Rate (in %) FY2018

Additional Tax

10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

15% surcharge on income tax if the total income exceeds Rs.1 Cr.

10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

15% surcharge on income tax if the total income exceeds Rs.1 Cr.

Surcharge

3% on total of income tax + surcharge.

4% cess on income tax including surcharge.

Cess

 

 

3) Income Tax Slab for Senior Citizens (80 Years Old or More Men & Women) for FY 2018-19:

Tax Rate (in %) FY2017

Tax Rate (in %) FY2018

Income Range (in Rupees)

No tax

No tax

Income up to Rs 5,00,000*

20%

20%

Income from Rs 5,00,000 – 10,00,000

30%

30%

Income Above 10,00,000

 

Tax Rate (in %) FY2017

Tax Rate (in %) FY2018

Additional Tax

10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

15% surcharge on income tax if the total income exceeds Rs.1 Cr.

10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

15% surcharge on income tax if the total income exceeds Rs.1 Cr.

Surcharge

3% on total of income tax + surcharge.

4% cess on income tax including surcharge.

Cess

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