In the Interim Budget 2019, the govt expanded duty refund limit from existing Rs 2.5 lakh to Rs 5 lakh. Presently, individual and HUFs who have a yearly pay upto Rs 5 lakh should make good on Nil pay regulatory obligation. The assessment chunks for other salary gatherings will be proclaimed later.
Government collects a duty on pay created by people and elements which is known as Income Tax. It is a lawful obligation of citizens to submit ITR (Income Tax Return) every year on schedule. Sum gathered through salary charges are a wellspring of income for government which is additionally used to create open foundation, streets, schools, protection, installment of the pay rates of the administration workers and so forth.
The pay charge is collected on people and organizations based on a foreordained expense section. These salary charge chunks are arranged dependent on the age section, pay sum and kind of pay. The duty rates continue expanding with an expansion in the salary piece. The assessment chunks are overhauled amid each financial plan. The individual citizen’s tax is sorted into three distinct gatherings:
1) Individuals and Hindu Undivided Family (HUF) (Below 60 years old)
2) Senior Citizens (60 years or more yet beneath 80 years old)
3) Super Senior Citizens (80 years or more)
Given beneath are the tables for most recent salary charge chunks
Income
Tax Slabs FY 2018-19 for Individuals and Hindu Undivided Family (HUF)
Part I – Less Than 60 Years Old
| Income | Tax Rates | Health and Education Cess |
| Up to Rs 2.5 lakh* | Nil | Nil |
| Above Rs 2.5 lakh to Rs 5 lakh | 5% | 4% of Income Tax |
| Above Rs 5 lakh to Rs 10 lakh | 20% | 4% of Income Tax |
| Above Rs 10 lakh | 30% | 4% of Income Tax |
Extra charge: 10% of pay charge, where the complete salary surpasses Rs 50 lakh up to Rs 1 crore.
Additional charge: 15% of pay charge, where the complete pay surpasses Rs 1 crore.
*Income charge exclusion limit for FY 2018-19 is up to Rs 2,50,000 for individual and HUF other than those shrouded in Part(II) or (III)
Part II – 60 Years and Above but Less than 80 Years
| Income | Tax Rates | Health and Education Cess |
| Up to Rs 3 lakh* | Nil | Nil |
| Above Rs 3 lakh to Rs 5 lakh | 5% | 4% of Income Tax |
| Above Rs 5 lakh to Rs 10 lakh | 20% | 4% of Income Tax |
| Above Rs 10 lakh | 30% | 4% of Income Tax |
Extra charge: 10% of salary charge, where the complete pay surpasses Rs 50 lakh up to Rs 1 crore.
Additional charge: 15% of salary charge, where the complete pay surpasses Rs 1 crore.
*Income charge exclusion limit for FY 2018-19 is up to Rs 3,00,000 other than those shrouded in Part(I) or (III)
Part III – 80 Years and Above
| Income | Tax Rate | Health & Education Cess |
| Up to Rs 5 lakh | Nil | Nil |
| Above Rs 5 lakh to Rs 10 lakh | 20% | 4% of Income Tax |
| Above Rs 10 lakh | 30% | 4% of Income Tax |
Extra charge: 10% of salary charge, where the absolute pay surpasses Rs 50 lakh up to Rs 1 crore.
Additional charge: 15% of pay charge, where the all-out salary surpasses Rs 1 crore.
*Income charge exclusion limit for FY 2018-19 is up to Rs 5,00,000 other than those shrouded in Part(I) or (II)
Part IV – Income Tax Slabs for Domestic Companies for FY 2018-19
| Turnover Particulars | Tax Rate |
| Gross turnover upto Rs 250 Crore in the previous year | 25% |
| Gross turnover exceeding Rs 250 Crore in the previous year | 30% |
Cess: 4% of corporate expense
Extra charge: If assessable pay is more than Rs 1 crore however not as much as Rs 10 crore: 7% Extra charge: If assessable pay is more than Rs 10 crore: 12%
Income Tax Slabs on Dividend
| Dividend Source | Tax Rate for Individuals/HUFs | Income Tax Section |
| If the average dividend income earned over the year does not exceed Rs 10 lakh | Nil | Section 10(34) |
| If the average dividend income received during the year exceeds Rs 10 lakh | 10% | Section 115BBDA |
Income Tax Slab For Non-Resident Indians (NRIs) for FY 2018-19
| Income | Tax Rate |
| Up to Rs 2.5 lakh | Nil |
| Above Rs 2.5 lakh to Rs 5 lakh | 5% |
| Above Rs 5 lakh to Rs 10 lakh | 20% |
| Above Rs 10 lakh | 30% |
*Health and Education Cess – 4%
Income Tax Slab for Expats for FY 2018-19
| Income | Tax Rate |
| Up to Rs 2.5 lakh | Nil |
| Above Rs 2.5 lakh to Rs 5 lakh | 5% |
| Above Rs 5 lakh to Rs 10 lakh | 20% |
| Above Rs 10 lakh | 30% |
Income Tax Slab for Freelancers
| Income | Tax Rate |
| Up to Rs 2.5 lakh | Nil |
| Above Rs 2.5 lakh to Rs 5 lakh | 5% |
| Above Rs 5 lakh to Rs 10 lakh | 20% |
| Above Rs 10 lakh | 30% |
Additionally Surcharge levied
| Income | Tax Rate |
| Above Rs 50 lakh but less than Rs 1 crore | 10% of the income tax |
| Above Rs 1 crore | 15% of the income tax (applicable on amounts that are higher than Rs. 1 crore) |
Health and Education Cess: 4%
Income Tax Slab for Pensioners
| Income | Tax Rate | Health & Education Cess |
| Up to Rs 3 lakh | Nil | Nil |
| Above Rs 3 lakh to Rs 5 lakh | 5% | 4% of Income Tax |
| Above Rs 5 lakh to Rs 10 lakh | 20% | 4% of Income Tax |
| Above Rs 10 lakh | 30% | 4% of Income Tax |
Surcharge Levied
| Income | Tax Rate |
| Above Rs 50 lakh but less than Rs 1 crore | 10% of the income tax |
| Above Rs 1 crore | 15% of the income tax (applicable on amounts that are higher than Rs 1 crore) |
*Exemption limit: Up to Rs 3 lakh for FY 2018-19
Pay Tax Deductions and Exemptions
Despite the fact that administration demands charge on all sort of salary and benefits created by people and organizations, it likewise offers different duty conclusions and exceptions. In the event that any individual burns through cash on the recommended speculation plans administered by the Income Tax Law, he/she ends up qualified to guarantee exclusion on that venture. The people can guarantee exception of a specific measure of cash spent on therapeutic protection, youngster’s instruction, ELLS reserves, charge sparing securities, FDs, Pension Funds and so on.
The Section 80C of Income Tax Act gives Rs 1.5 lakh charge exclusion to citizens on the off chance that they put resources into roads referenced in the area 80C.
