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- Updated 06 Apr 2023
Summary
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Income tax slabs for FY 2018-19 remain mostly the same as the previous financial year.
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Health and Education Cess increased to 4% from 3% in the previous year.
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A standard deduction of Rs.40,000 can be claimed for transportation and/or medical reimbursements from Financial Year 2018-19.
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The Finance Ministry in the Union Budget for 2018 announced the insertion of Section 80TTB which will govern the tax benefits for senior citizens. We have covered the revised tax benefits later in this article.
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For domestic companies, the turnover limit for 25% taxation bracket was increased to Rs.250 crore from Rs. 50 crore in the previous financial year (FY2017-18).
Introduction To Income Tax Slabs
The amount of tax (as a percentage of your income) you must pay is determined by your tax slab. This is applicable for different types of taxpayers -- resident individuals, non-resident individuals, Hindu Undivided Families, associations of people, firms, domestic and foreign companies.
These tax rates are subject to change based proposals in the Union Budget every year. Indian has a progressive tax system based on ‘ability to pay’ – the tax percentage increases incrementally with income. So, the poor pay less or no tax under such a system, while the affluent pay higher taxes.
Read more: Income Tax slabs in India
Income Tax Slabs Rates For FY2018-19 (AY 2019-20)
Tax slabs for FY 2018-19 remain the same as the previous year (FY 2017-18). Some changes that have been incorporated in FY 2018-19 are:
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The 3% Education Cess levied in FY18 has been increased to 4% and is called the Health and Education Cess.
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A standard deduction of Rs.40,000 can be claimed for transportation and/or medical reimbursements from FY18.
Income Tax Slabs For Individual Tax Payers & HUF
Up to Rs. 2.5 lakh | Nil |
Rs.2.5 lakh to 5 lakh | 5% |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 4% of income tax(for income above Rs. 2.5 lakh) |
Surcharge* | 10% of income tax (For total income between Rs.50 lakh and Rs. 1 crore) 15% of income tax (For income above Rs. 1 crore) |
Surcharge levied should not exceed the amount of income tax payable.
Income Tax Slabs For Senior Citizens (Over 60 Years But Below 80) For FY 2018-19 – Part II
For senior citizens, the income tax exemption limit is up to Rs. 3 lakh, as per the FY 2018-19 tax slabs.
Up to Rs. 3 lakh | Nil |
Rs.3 lakh to 5 lakh | 5% |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 4% of income tax(for income above Rs. 3 lakh) |
Surcharge | 10% of income tax (For total income between Rs.50 lakh and Rs. 1 crore) 15% of income tax (For income above Rs. 1 crore) |
Income Tax Slabs For Super Senior Citizens (Over 80 Years) For FY 2018-19 – Part III
For Super Senior Citizens, total income up to Rs.5 lakh is tax exempt for FY 2018-19.
Up to Rs.5 lakh | Nil |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 4% of income tax(for income above Rs. 5 lakh) |
Surcharge | 10% of income tax (For total income between Rs.50 lakh and Rs. 1 crore) 15% of income tax (For income above Rs. 1 crore) |
Income Tax Slabs For Domestic Companies For FY 2018-19 – Part IV
In the Union Budget for FY 2018-19, the turn over limit for 25% taxation bracket was increased to Rs.250 crore from Rs. 50 crore in the previous year.
Gross turn over < Rs.250 crore | 25% |
Gross turn over > Rs. 250 crore | 30% |
Cess | 4% of corporate tax |
Surcharge | 7% of income tax (For total income between Rs.1 crore and Rs.10 crore) 12% of income tax (For income above Rs.10 crore) |
Income Tax Slabs Rates for Previous Years
Income Tax Slabs Rates For FY 2017-18 (AY 2018-19)
Income Tax Slabs For Individual Tax Payers & HUF
In FY 2017-18, the tax rate for income between Rs.2.5 lakh and Rs.5 lakh was reduced to 5% from 10% in FY 2016-17. An additional surcharge of 10% was levied for those with total income exceeding Rs.50 lakh but less than Rs. 1 crore.
Up to Rs. 2.5 lakh | Nil | Nil |
Rs.2.5 lakh to 5 lakh | 5% | 3% |
Rs. 5 lakh to Rs. 10 lakh | 20% | 4% |
Rs. 10 lakh and above | 30% | 4% |
Surcharge* | 10% of income tax (For total income between Rs.50 lakh and Rs. 1 crore) 15% of income tax (For income above Rs. 1 crore) |
Income Tax Slabs For Senior Citizens (Over 60 Years But Under 80) For FY 2017-18 – Part II
Up to Rs. 3 lakh | Nil |
Rs.3 lakh to 5 lakh | 5% |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 3% of income tax(for income above Rs. 3 lakh) |
Surcharge | 10% of income tax (For total income between Rs.50 lakh and Rs. 1 crore) 15% of income tax (For income above Rs. 1 crore) |
Income Tax Slabs For Super Senior Citizens (Above 80 Years)
Up to Rs.5 lakh | Nil |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 3% of income tax(for income above Rs. 5 lakh) |
Surcharge | 10% of income tax (For total income between Rs.50 lakh and Rs. 1 crore) 15% of income tax (For income above Rs. 1 crore) |
Income Tax Slabs For Domestic Companies For FY
Gross turn over < Rs.50 crore | 25% |
Gross turn over > Rs. 50 crore | 30% |
Cess | 3% of corporate tax |
Surcharge | 7% of income tax (For total income between Rs.1 crore and Rs.10 crore) 12% of income tax (For income above Rs.10 crore) |
Income Tax Slabs For Individual Tax Payers & HUF
Up to Rs. 2.5 lakh | Nil |
Rs.2.5 lakh to 5 lakh | 10% |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 3% of income tax(for income above Rs. 2.5 lakh) |
Surcharge | 15% of income tax (For income above Rs. 1 crore) |
Income Tax Slabs For Senior Citizens (Over 60 But Below 80 Years) For FY 2016-17 – Part IIF
Up to Rs. 3 lakh | Nil |
Rs.3 lakh to 5 lakh | 10% |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 3% of income tax(for income above Rs. 3 lakh) |
Surcharge | 15% of income tax (For income above Rs. 1 crore) |
Income Tax Slabs For Senior Citizens (Over 80 Years Of Age) For FY 2016-17 – Part III
Up to Rs.5 lakh | Nil |
Rs. 5 lakh to Rs. 10 lakh | 20% |
Rs. 10 lakh and above | 30% |
Education and Health Cess | 3% of income tax(for income above Rs. 5 lakh) |
Surcharge | 15% of income tax (For income above Rs. 1 crore) |
IT Slabs For Domestic Companies For FY
Gross turn over in FY 2014-15 < Rs.5 crore | 29% |
Gross turn over in FY 2014-15 > Rs. 5 crore | 30% |
Cess | 3% of corporate tax |
Surcharge | 7% of income tax (For total income between Rs.1 crore and Rs.10 crore) 12% of income tax (For income above Rs.10 crore) |
FAQS About Income Tax Slabs
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