INCOME-TAX
Individuals, Hindu undivided families, AOPs, BOIs – The tax rates applicable to individuals are also applicable to a Hindu undivided family, an association of persons, body of individuals or an artificial juridical person. The rates applicable for the assessment years 2018-19 and 2019-20 are as follows :
ASSESSMENT YEAR 2018-19 – Tax rates for the assessment year 2018-19 are given below—
• For a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year, i.e., born on or after April 2, 1938 but before April 2, 1958)–
| Net income range | Income-tax rates | Surcharge | Education cess | Secondary and higher education cess |
| Up to Rs. 3,00,000 | Nil | Nil | Nil | Nil |
| Rs. 3,00,000 – Rs. 5,00,000 | 5% of (total income minus Rs. 3,00,000) [see Note 1] |
Nil | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,000 – Rs. 10,00,000 | Rs. 10,000 + 20% of (total income minus Rs. 5,00,000) |
Nil | 2% of income-tax | 1% of income-tax |
| Rs. 10,00,000 – Rs. 50,00,000 | Rs. 1,10,000 + 30% of (total income minus Rs. 10,00,000) |
Nil | 2% of income-tax | 1% of income-tax |
| Rs. 50,00,000 – Rs. 1,00,00,000 | Rs. 13,10,000 + 30% of (total income minus Rs. 50,00,000) |
10% of income-tax [see Note 2] |
2% of income-tax and surcharge | 1% of income-tax and surcharge |
| Above Rs.1,00,00,000 | Rs. 28,10,000 + 30% of (total income minusRs.1,00,00,000) |
15% of income-tax [see Note 2] |
2% of income-tax and surcharge | 1% of income-tax and surcharge |
• For a resident super senior citizen (who is 80 years or more at any time during the previous year, i.e., born before April 2, 1938)—
| Net income range | Income-tax rates | Surcharge | Education cess | Secondary and higher education cess |
| Up to Rs. 5,00,000 | Nil | Nil | Nil | Nil |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% of (total income minus Rs. 5,00,000) | Nil | 2% of income-tax | 1% of income-tax |
| Rs. 10,00,000 – Rs. 50,00,000 | Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000) |
Nil | 2% of income-tax | 1% of income-tax |
| Rs. 50,00,000 – Rs. 1,00,00,000 | Rs. 13,00,000 + 30% of (total income minus Rs. 50,00,000) |
10% of income-tax [see Note 2] |
2% of income-tax and surcharge | 1% of income-tax and surcharge |
| Above Rs. 1,00,00,000 | Rs. 28,00,000 + 30% of (total income minus Rs. 1,00,00,000) |
15% of income-tax [see Note 2] |
2% of income-tax and surcharge | 1% of income-tax and surcharge |
• For any other resident individual (born on or after April 2, 1958), any non-resident individual, every HUF/AOP/BOI/artificial juridical person—
| Net income range | Income-tax rates | Surcharge | Education cess | Secondary and higher education cess |
| Up to Rs. 2,50,000 | Nil | Nil | Nil | Nil |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% of (total income minusRs. 2,50,000) [see Note 1] |
Nil | 2% of income-tax | 1% of income-tax |
| Rs. 5,00,000 – Rs. 10,00,000 | Rs. 12,500 + 20% of (total income minus Rs. 5,00,000) |
Nil | 2% of income-tax | 1% of income-tax |
| Rs. 10,00,000 – Rs. 50,00,000 | Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000) |
Nil | 2% of income-tax | 1% of income-tax |
| Rs. 50,00,000 – Rs. 1,00,00,000 | Rs. 13,12,500 + 30% of (total income minus Rs. 50,00,000) |
10% of income-tax [see Note 2] |
2% of income-tax and surcharge | 1% of income-tax and surcharge |
| Above Rs. 1,00,00,000 | Rs. 28,12,500 + 30% of (total income minus Rs. 1,00,00,000) |
15% of income-tax [see Note 2] |
2% of income-tax and surcharge | 1% of income-tax and surcharge |
Notes :
1. Rebate under section 87A – A resident individual (whose net income does not exceed Rs. 3,50,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,500, whichever is less.
2. Surcharge – Surcharge is 10 per cent of income-tax if net income is more than Rs. 50 lakh but not more than Rs. 1 crore. If net income is more than Rs. 1 crore, surcharge is 15 per cent of income-tax. Surcharge is subject to a marginal relief. If net income exceeds Rs. 50 lakh, the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 50 lakh by more than the amount of income that exceeds Rs. 50 lakh. Likewise, if net income exceeds Rs. 1 crore, the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
3. Education cess – It is 2 per cent of income-tax and surcharge.
4. Secondary and higher education cess – It is 1 per cent of income-tax and surcharge.
• Alternate minimum tax – Tax payable by a non-corporate assessee cannot be less than 18.5 per cent (+SC+EC+SHEC) of “adjusted total income” as per section 115JC
ASSESSMENT YEAR 2019-20 – Tax rates for the assessment year 2019-20 are given below—
• For a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year, i.e., born on or after April 2, 1939 but before April 2, 1959)–
| Net income range | Income-tax rates | Surcharge | Health and education cess (HEC) |
| Up to Rs. 3,00,000 | Nil | Nil | Nil |
| Rs. 3,00,000 – Rs. 5,00,000 | 5% of (total income minus Rs. 3,00,000) [see Note 1] |
Nil | 4% of income-tax |
| Rs. 5,00,000 – Rs. 10,00,000 | Rs. 10,000 + 20% of (total income minus Rs. 5,00,000) |
Nil | 4% of income-tax |
| Rs. 10,00,000 – Rs. 50,00,000 | Rs. 1,10,000 + 30% of (total income minus Rs. 10,00,000) |
Nil | 4% of income-tax |
| Rs. 50,00,000 – Rs. 1,00,00,000 | Rs. 13,10,000 + 30% of (total income minus Rs. 50,00,000) |
10% of income-tax [see Note 2] |
4% of income-tax and surcharge |
| Above Rs.1,00,00,000 | Rs. 28,10,000 + 30% of (total income minusRs.1,00,00,000) |
15% of income-tax [see Note 2] |
4% of income-tax and surcharge |
• For a resident super senior citizen (who is 80 years or more at any time during the previous year, i.e., born before April 2, 1939)—
| Net income range | Income-tax rates | Surcharge | Health and education cess (HEC) |
| Up to Rs. 5,00,000 | Nil | Nil | Nil |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% of (total income minus Rs. 5,00,000) |
Nil | 4% of income-tax |
| Rs. 10,00,000 – Rs. 50,00,000 | Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000) |
Nil | 4% of income-tax |
| Rs. 50,00,000 – Rs. 1,00,00,000 | Rs. 13,00,000 + 30% of (total income minus Rs. 50,00,000) |
10% of income-tax [see Note 2] |
4% of income-tax and surcharge |
| Above Rs. 1,00,00,000 | Rs. 28,00,000 + 30% of (total income minus Rs. 1,00,00,000) |
15% of income-tax [see Note 2] |
4% of income-tax and surcharge |
• For any other resident individual (born on or after April 2, 1959), any non-resident individual, every HUF/AOP/BOI/artificial juridical person—
| Net income range | Income-tax rates | Surcharge | Health and education cess (HEC) |
| Up to Rs. 2,50,000 | Nil | Nil | Nil |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% of (total income minus Rs. 2,50,000) [see Note 1] |
Nil | 4% of income-tax |
| Rs. 5,00,000 – Rs. 10,00,000 | Rs. 12,500 + 20% of (total income minus Rs. 5,00,000) |
Nil | 4% of income-tax |
| Rs. 10,00,000 – Rs 50,00,000 | Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000) |
Nil | 4% of income-tax |
| Rs. 50,00,000 – Rs. 1,00,00,000 | Rs. 13,12,500 + 30% of (total income minus Rs. 50,00,000) |
10% of income-tax [see Note 2] |
4% of income-tax and surcharge |
| Above Rs. 1,00,00,000 | Rs. 28,12,500 + 30% of (total income minus Rs. 1,00,00,000) |
15% of income-tax [see Note 2] |
4% of income-tax and surcharge |
Notes :
1. Rebate under section 87A – A resident individual (whose net income does not exceed Rs. 3,50,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,500, whichever is less.
2. Surcharge – Surcharge is 10 per cent of income-tax if net income is more than Rs. 50 lakh but not more than Rs. 1 crore. If net income is more than Rs. 1 crore, surcharge is 15 per cent of income-tax. Surcharge is subject to a marginal relief. If net income exceeds Rs. 50 lakh, the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 50 lakh by more than the amount of income that exceeds Rs. 50 lakh. Likewise, if net income exceeds Rs. 1 crore, the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
3. Health and education cess (HEC) – It is 4 per cent of income-tax and surcharge.
• Alternate minimum tax – Tax payable by a non-corporate assessee cannot be less than 18.5 per cent†(+SC+HEC) of “adjusted total income” as per section 115JC
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