Every person who earns pays income tax to the government. There are several factors that decide the amount of tax one needs to pay at the closure of a financial year. It depends upon the taxpayer’s age, type of job and the size of income. To compute the income tax amount and the possible deduction one could receive, one needs to provide detailed declaration of one’s earnings. You not only need to declare your income earned from your job salary but also incomes from other sources, if any.

How to Calculate Income Tax in India?

Income tax of an individual is calculated on the basis of current income tax slab rates provided by the government of India. Different types of income tax slabs are being designed for people with different types of jobs. Higher tax rate is levied upon higher income. These tax slab rates are regulated by the government of India and amended in every budget.

Different Types of Income Tax Slabs for 2018-19

As stated above, different slab rates are applicable for various individuals. Income tax slab rates can be categorized into four groups:

  • Income tax slab rates for Hindu Undivided Family and individual with age below 60yrs
  • Income tax slab rates for senior citizen with age 60yrs and above but below 80yrs
  • Income tax slab rates for senior citizen with age above 80yrs
  • Income tax slab rates for domestic companies

New Income Tax Slab Rates for 2018-2019

Various tax rates are applicable for individuals with different age and condition.

Income Tax Slab Rates For Hindu Undivided Family (HUF) And Individual, 2018-19

  • Individuals with income below ₹2lakhs and 50thousands do not have to pay tax.
  • Individuals with income above 2lakhs and 50 thousand but below 5lakhs need to pay 0 percent to 5 percent income tax.
  • Individuals with income above 5lakhs but below 10lakhs need to pay 20 percent income tax.
  • Individuals with income above 10lakhs need to pay 30 percent income tax.

Detailed outline of tax slab rates and applicable education and health cess rates:

Tax Slabs Tax Rates Education and Health Cess
Income equal to or less than ₹2lakhs and 50thousand Nil Nil
Income above ₹2lakhs and 50 thousand but below ₹5lakhs 5 percent 4 percent of income tax
Income above ₹5lakhs but below ₹10lakhs 20 percent 4 percent of income tax
Income above ₹10lakhs 30 percent 4 percent of income tax
  • Surcharge equivalent to 10 percent of income tax is applicable for income above ₹50lakhs but below ₹1crore and 15 percent of income tax for income above ₹1crore.

Income Tax Slab Rates for Senior Citizen with Age 60yrs and Above but Below 80yrs, 2018-19

  • Senior citizen tax payers with income equal to or below ₹3lakhs do not need to pay tax.
  • Senior tax payers with income more than ₹3lakhs but lesser than ₹5lakhs need to pay 5 percent income tax.
  • Senior tax payers with income more than ₹5lakhs but less than ₹10lakhs need to pay 20 percent income tax.
  • Senior tax payers with income more than ₹10lakhs need to pay 30 percent income tax.

Below is the detailed outline of income tax slab rates for senior tax payers with age 60yrs and above but below 80yrs along with education and health cess rates:

Tax Slabs Tax Rates Education and Health Cess
Income equal to or less than ₹3lakhs Nil Nil
Income more than ₹3lakhs but less than ₹5lakhs 5 percent 4 percent of income tax
Income more than ₹5lakhs but less than ₹10lakhs 20 percent 4 percent of income tax
Income above ₹10lakhs 30 percent 4 percent of income tax
  • Surcharge equivalent to 10 percent of income tax is applicable for income above ₹50lakhs but below ₹1crore and 15 percent of income tax for income above ₹1crore.

Income Tax Slab Rates for Senior Citizens Above 80yrs Old, 2018-19

  • Senior Citizen tax payers above 80yrs old with income up to ₹5lakhs do not need to pay income tax.
  • Senior tax payers above 80yrs old with income above ₹5lakhs but below ₹10lakhs need to pay 20 percent income tax.
  • Senior tax payers above the age of 80yrs with income above ₹10lakhs need to pay 30 percent income tax.

Below is the detailed outline of tax slab rates of senior citizen tax payers above the age of 80yrs along with the education and health cess rates:

Tax Slabs Tax Rates Education and Health Cess
Income less than or equal to ₹5lakhs Nil Nil
Income more than ₹5lakhs but less than ₹10lakhs 20 percent 4 percent of income tax
Income above ₹10lakhs 30 percent 4 percent of income tax
  • Surcharge equivalent to 10 percent of income tax is applicable for income above ₹50lakhs but below ₹1crore and 15 percent of income tax for income above ₹1crore.

1. Income Tax Slab Rates for Domestic Companies, 2018-19

Gross Turnover of Company Tax Rates
Income up to ₹ 250crores in preceding year 25 percent
Income above ₹ 250crores in preceding year 29 percent

 

Taxable Income Surcharge
Income above ₹ 1crore but below ₹ 10crores 7 percent of the taxable income
Income above ₹ 10crores 12 percent of the taxable income

LEAVE A REPLY

Please enter your comment!
Please enter your name here