Tax Rates

 

TAX RATES

For the Financial Year 2018-2019

According to the union budget of 2018, the income tax slabs in various categories are as follows.

For Resident Individuals, Non Resident Indians, Hindu Undivided Families (HUFs), Associations
of Persons, Bodies of Individuals and Other Artificial Judicial Persons

  • If income is upto ₹ 2,50,000 tax rate is nil.
  • If income is upto ₹ 2,50,000 to ₹ 5,00,000 tax rate is 5%.
  • If income is upto ₹ 5,00,000 to ₹ 10,00,000 tax rate is 20%.
  • If income is over ₹ 10,00,000 tax rate is 30%.

Additional tax rate applicability:

For Resident Individuals, Non Resident Indians, Hindu Undivided Families (HUFs), Associations of Persons, Bodies of Individuals and Other Artificial Judicial Persons

Surcharge: If income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. If income is more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount more than ₹ 1 crore

Resident Individuals, Non Resident Indians, Hindu Undivided Families (HUFs)

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Associations of Persons, Bodies of Individuals and Other Artificial Judicial Persons

Education Cess of 2% is applicable on the income tax amount plus applicable surcharge.

Secondary& Higher Education Cess of 1% is applicable on the income tax plus surcharge applicable for all tax payers.

Senior Citizens

  • If income is upto ₹ 3,00,000 tax rate is nil.
  • If income is upto ₹ 3,00,000 to ₹ 5,00,000 tax rate is 5%.
  • If income is upto ₹ 5,00,000 to ₹ 10,00,000 tax rate is 20%.
  • If income is over ₹ 10,00,000 tax rate is 30%.

Additional Tax Rate

Surcharge: If income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. If income is more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount more than ₹ 1 crore

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Super Senior Citizens

  • If income is upto ₹ 5,00,000 tax rate is nil.
  • If income is upto ₹ 5,00,000 to ₹ 10,00,000 tax rate is 20%.
  • If income is over ₹ 10,00,000 tax rate is 30%.
  •  

Additional Tax Rate

Surcharge: If income is more than ₹ 50 lakhs and less than ₹ 1 crore, the surcharge is applicable at a rate of 10% of the income tax. If income is more than ₹ 1 crore, a surcharge of 15% is applicable on income tax on the amount more than ₹ 1 crore

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Partnership Firms

The tax rate is at a flat rate of 30% for any Partnership Firms & Limited Liability Partnerships (LLP)

 

Additional Tax Rate

Surcharge: If income is exceeding ₹ 1 crore, the applicable surcharge is @ 12% over income tax amount.

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

 

Local Entity / Authorities

The tax rate is at a flat rate of 30% for Local Authorities.

 

Additional Tax Rate

Surcharge: If income is exceeding ₹ 1 crore, the applicable surcharge is @ 12% over income tax amount.

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

 

Domestic Entity Companies

The tax rate is at a flat rate of 30% for any Domestic Companies. However, if the gross receipt of the company does not exceed ₹ 250 crores in the previous year, the company has to pay taxes at a rate of 25%.

 

Additional tax rate:

Surcharge: If income is between ₹ 1 crore and ₹ 10 crores, the applicable surcharge is @ 7% of income tax amount. However, if the amount is more than ₹ 10 crores, the surcharge payable is at a rate of 12%.The income tax department also provides marginal relief to companies in special cases, such as:

1. If income exceeds ₹ 1 crore but not exceeding ₹ 10 crores, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ₹ 1 crores by more than the amount of income that exceeds ₹ 1 crores.

2. If income exceeds ₹ 10 crores, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ₹ 10 crores by more than the amount of income that exceeds ₹ 10 crores.

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Foreign Entity / Companies

Nature of Income Tax rate
If any income received as royalty compensated by the Government of India against the agreements executed with the Indian concern (after 31stMarch 1961, and prior to 1st April 1976) (if Foreign Company operating in India) 50%
If any income received as fees for any technical services provided as per the agreements executed with an Indian concern (after 29thFebruary 1964, and prior to 1st April 1976) (if Foreign Company operating in India) 50%
Any other additional income earned 40%

Additional Tax Rate

Surcharge: If income is between ₹ 1 crore and ₹ 10 crores, the applicable surcharge is @ 2% of the income tax amount. If income is exceeding ₹ 10 crores – 5% of the income tax amount is charged as surcharge.

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

 

Co-operative Societies

Rural/ Urban / Semi urban excluding Self Help Group (SHG) and Agricultural Societies.

  • If income is upto ₹ 10,000 tax rate is 10%.
  • If income is upto ₹ 10,000 to ₹ 20,000 tax rate is 20%.
  • If income is over ₹ 20,000 tax rate is 30%.

Additional Tax Rate

Surcharge: If income is exceeding ₹ 1 crore, the surcharge is applicable @ 12% of the income tax amount.

Health and Education Cess: “Education Cess” and “Secondary and Higher Education Cess” is replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.