Tax

Proposed Income Tax Slab Rates for Financial Year 2018-19

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In order to gain tax benefits to the fullest, it is essential to understand the current income tax slab rates. At HDFC Life, we ensure that our customers are well-informed about the latest income tax slab rates in India as well as the tax benefits relevant to life insurance policies for the financial year 2018-19.

What is an Income Tax Slab?

In a country like India, the range of income among its citizens is diverse. So it isn’t fair to levy a single tax rate for every individual. Therefore, the government has categorized the taxpayers into different groups based on their income. These groups are referred to as Tax Slabs. Each group is charged tax at varying rates. Each year, the income tax slab rates are revised during the budget session. The provisions for income tax in India is governed by the laws of the Income Tax Act 1961. However, the budget proposals are required to  to be approved by the Parliament and requires presidential assent before becoming the law. Post that these will be applicable from April 1, 2018.

Income Tax Slab  For FY 2018-19

The finance minister during his budget speech has announced  that there will be no change in the structure of the income tax rates for individuals.

There is a proposal of 4% Heath and education cess in place of earlier 3% education cess on the Income tax

Here are the Proposed income tax slab rates  in India for different categories of tax payers for FY 2018-19:

Income Tax Slab Rate for men below 60 Years of Age

Income Tax Slab

Income Tax Rate

Income upto Rs. 2,50,000

Nil

Income between Rs. 2,50,001 - Rs. 500,000

5% of Income exceeding Rs. 2,50,000

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

                      15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge

Income Tax Slab Rate for Women below 60 Years of Age

Income Tax Slab

Income Tax Rate

Income up to Rs. 2,50,000

Nil

Income between Rs. 2,50,001 - Rs. 500,000

5% of Income exceeding Rs. 2,50,000

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

                      15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge

Income Tax Slab Rate for Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax Slab

Income Tax Rate

Income upto Rs. 3,00,000

Nil

Income between Rs. 3,00,001 - Rs. 500,000

5% of Income exceeding Rs. 3,00,000

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

                      15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge

Income Tax Slab Rate for Senior Citizens (Age 80 years or more)

e Tax Slab

Income Tax Rate

Income upto Rs. 5,00,000

Nil

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

                      15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge

Income Tax Slab Rate Hindu Undivided Families (HUF)

Income Tax Slab

Income Tax Rate

Income up to Rs. 2,50,000

Nil

Income between Rs. 2,50,001 - Rs. 500,000

5% of Income exceeding Rs. 2,50,000

Income between Rs. 500,001 - Rs. 10,00,000

20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000

30% of Income exceeding Rs. 10,00,000

Plus:

Surcharge: 10% of tax where total income exceeds Rs. 50 lakh

                      15% of tax where total income exceeds Rs. 1 crore

Health & Education cess: 4% of tax plus surcharge


Partnership Firms

Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%.

Plus:

Surcharge: 12% of tax where total income exceeds Rs. 1 Crore

Health & Education cess: 4% of tax plus surcharge

Local Authorities

Local Authorities are to be taxed at the rate of 30%.

Plus:

Surcharge: 12% of tax where total income exceeds Rs. 1 Crore

Health & Education cess: 4% of tax plus surcharge

Domestic Companies

Domestic Companies are to be taxed at the rate of 30%. However, tax rate will be 25% if turnover or gross receipt of the company does not exceed Rs. 250 crores.

 Plus:

Surcharge: 7% of tax where total income exceeds Rs. 1 Crore

                  12% of tax where total income exceeds Rs. 10 Crore

Health & Education cess: 4% of tax plus surcharge

Income Tax Slab Rate of Co-operative Societies

Income Tax Slab

Income Tax Slab Rate

Up to Rs.10,000

10% of Income

Rs.10,000 to Rs 20,000

20% of Income exceeding Rs. 10,000

Over Rs. 20,000

30% of Income exceeding Rs. 20,000

Plus:

Surcharge: 12% of tax where total income exceeds Rs. 1 Crore

Health & Education cess: 4% of tax plus surcharge

 

 

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