HomeIncome Tax

New Income Tax Rate Financial Year (FY) 2018-19 or Assessment Year(AY) 2019-20

New Income Tax Rate Financial Year (FY) 2018-19 or  Assessment Year(AY) 2019-20
Like Tweet Pin it Share Share Email

It is time to have new Income Tax rate for the Financial Year (FY) 2018-19 or the Assessment Year ( AY) 2019-20 after recent budget speech of Hon. Finance Minister Mr Arul Jaitley on 1st February 2018. There isn’t much changes from previous year Income tax rate slab. The main highlight of personal income tax this year budget is the introduction of standard deduction of 40000/- for salaried tax payers by replacing transport allowance of 1600/month and medical expense of 15000. 3% education cess has been replaced by 4 % Health and education cess. Also there is a reduction of 5 % for companies having turnover less than 250 crores in the FY 2016-17. Those companies enjoys 25 % income tax instead of 30 % on total income.

for such companies.

All the amendments mentioned below are proposed in the Finance Bill, 2018 and will take effect from AY 2019–20, unless
otherwise specifically stated, subject to passing by both the houses of the Parliament and assent by the President.

Income Tax Rate For Individuals, HUF, AOP and BOI

Tax Rates for Individuals, HUF, AOP and BOI
Net Taxable Income (INR) Individual,
HUF, AOP
and BOI
Senior
Citizen
(60 years &
Above)
Very
Senior
Citizen ( 80
years &
above)
Upto – 2,50,000 NIL NIL NIL
2,50,001 – 3,00,000 5.00% NIL NIL
3,00,001 – 5,00,000 5.00% 5.00% NIL
5,00,001 –10,00,000 20.00% 20.00% 20.00%
Above 10,00,000 30.00% 30.00% 30.00%

Note: 

  1. 10 % surcharge is applicable for the all above mentioned categories earning income between 50 lakhs to 1 crore.
  2. 15 % surcharge on income tax is applicable for income above 1 crore.
  3. 4% Health and education cess is chargeable on above categories.
  4. Rebate of INR 2,500 available only to individuals with total income upto INR 3.5
    Lakhs.

Income Tax Rates for Firms (including LLPs)

Tax Rates for Firms (including LLPs)
Particulars Basic
Tax
Surcharge  Cess Total
Income upto INR 1 Crore 30.00% NIL 4.00% 31.20%
Income exceeding INR 1 Crore 30.00% 12.00% 4.00% 34.94%

Note: Health and Education Cess @ 4.0% of Tax + Surcharge.

Income tax rate for Domestic Companies

Tax Rates for Domestic Companies
Total Turnover or Gross
Receipts of FY 2016-17
Upto INR 250
Crores
Exceeding INR 250 Crores Surcharge Cess Upto INR 250
Crores
Exceeding
INR 250
Crores
Particulars  Basic Tax Basic Tax  Total  Total
Income upto INR 1 Crore 25.00% 30.00% 4.00% 26.00% 31.20%
Income exceeding INR 1
Crore but less than INR 10
Crores
25.00% 30.00% 7.00% 4.00% 27.82% 33.38%
Income exceeding INR 10 Crores 25.00% 30.00% 12.00% 4.00% 29.12% 34.94%

Note: Health and Education Cess @ 4.0% of Tax + Surcharge

Income tax rate for Foreign Companies

Tax Rates for Foreign Companies
Particulars Tax Surcharge  Cess Total
Income upto INR 1 Crore 40.00% 4.00% 41.60%
Income exceeding INR 1 Crore but
less than INR 10 Crores
40.00% 2.00% 4.00% 42.43%
Income exceeding INR 10 Crore 40.00% 5.00% 4.00% 43.68%

Note: Health and Education Cess @ 4.0% of Tax + Surcharge

Dividend Distribution Tax on amount received by Shareholder

Particulars Tax  Surcharge Cess  Total
Present 17.65% 12.00% 3.00% 20.36%
Proposed 17.65% 12.00% 4.00% 20.56%

Note: Deemed dividend is now brought within the purview of DDT @ 30%, without grossing up.

Additional tax @ 10% of gross amount of dividend will be payable by all resident taxpayer receiving dividend exceeding of INR 10 lakhs per annum except following specified taxpayer: 

  1. Domestic Company
  2. A fund or institution or trust or any university or other educational institution or any hospital or other medical institution as per
    Section 10(23C) 
  3. A trust or institution registered under section 12AA

Comments (0)

Leave a Reply

Your email address will not be published. Required fields are marked *