Tax
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 2020-21
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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Our vision is to provide innovative and customer-centric insurance plans that can help our customers secure their family's future as well as help them with other benefits such as tax savings. Keeping this in mind we offer a large range of life insurance plans such as term insurance plan, women's plan, health insurance plans, pension plans for retirement planning, child education plans, ULIPs, saving and investment plans. Most of these life insurance policies are available online, so buy one today and Sar Utha Ke Jiyo!.
As per regulatory changes, it is mandatory to submit PAN/Form 60 (if PAN is not available) for your policy with immediate effect. Please update via My Account/service@hdfclife.com/18602679999/HDFC Life branch. Ignore if already submitted.
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HDFC Life Insurance Company Limited,
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