24 Mar Income Tax Rate for Financial Year 2018-19
The year 2017-18 is about to get over and its the time now that we should make ourselves aware of Income Tax Rate applicable for the coming year. As per budget 2018, no significant changes have been made to Income Tax Rates for Financial Year 2018-19 expect few. Let’s have a look at the Income Tax rates applicable for Financial Year 2018-19 for different persons.
- Rates applicable for Individuals/HUF/Body of Individuals/ Association of Person
- Total Income up to ₹ 2,50,000 – NIL
- Total Income above ₹ 2,50,000 but not exceeding ₹ 5,00,000 – 5 percent of the amount by which total income exceeds Rs 2,50,000
- Total Income above ₹ 5,00,000 but not exceeding ₹ 10,00,000 – ₹ 12,500 plus 20 percent of the amount by which total income exceeds Rs 5,00,000
- Total Income above ₹ 10,00,000 – ₹ 1,12,500 plus 30 percent of the amount by which total income exceeds ₹ 10,00,000
The above basic exemption limit of ₹ 2,50,000 lac changes to ₹ 3,00,000 and ₹ 5,00,000 in case of Senior Citizen and Very Senior Citizen respectively.
Surcharge on income tax in case of above persons
- If total income exceeds ₹ 50 Lac and below ₹ 1 crore – 10 percent
- If total income exceeds ₹ 1 crore – 15 percent
- Rates for Domestic Companies
- Domestic Companies with Turnover or gross receipts does not exceed ₹ 250 crores during the previous year 2016-17 – 25 percent of total income (This is one of the major change brought in through Budget 2018. This move will benefit micro, small and medium enterprises. The lower tax rate will leave them with a higher investible surplus which in turn will create more jobs in India)
- Other Domestic Companies – 30 percent of total income
Surcharge on income tax in case of Domestic Companies
- Companies with total income above ₹ 1 crore but lesser than ₹ 10 crore- 7 percent
- Companies with total income above ₹ 10 crore – 12 percent
- Rates for Firms
- Tax rate – 30 percent of total income.
Surcharge on income tax in case of Firms
- If total income exceeds ₹ 1 crore – 12 percent
Applicability of Health and Education Cess– A new Health and Education Cess of 4 percent shall be levied on above taxes from the Financial year 2018-19 onwards. Education Cess and Secondary and Higher Education Cess of 3% will be discontinued. The new cess aims to provide and finance quality health services and universalized quality basic education and secondary and higher education.
Meaning of Senior Citizen– Person of the age of sixty or more but less than 80 years.
Meaning of Very Senior Citizen– Person of the age of eighty years or more.