Income tax stabs which are applicable in 2019
Income tax is referred to as a progressive tax. It means that the rate of the tax increases as the income of the assesses increases. The income is divided or classified as a range of minimum and maximum limits, known & income stabs.
Income tax stab rates specify the threshold annual limits at which a higher or lower rate of tax applicable.
As per the notifications of Union Budget of Govt. of India, the various stabs according to which income tax is assessed in various categories of assesses are summarized as under along with the additional components and key features.
Categories:- Resident Indians, Non-resident Indians, HUF’s Associations of persons, Bodies of individuals, Other artificial persons, Freelancers, Doctors, expatriates.
| Income thereshold | Tax rate applicable |
| Up to Rs. 2, 50,000 | NIL |
| Rs. 25,000 to Rs. 5, 00000 | 5% |
| Rs. 500001 to Rs. 10, 00000 | 20% |
| Over Rs. 10, 00001 | 30% |
Categories Senior Citizens
| Income thresholds | Tax rate applicable |
| Up to Rs. 3, 00000 | NIL |
| Rs. 3, 00001 to Rs. 5, 00000 | 5% |
| Rs. 5, 00001 to Rs. 10, 00000 | 20% |
| Over Rs. 10, 00001 | 0% |
Categories Super Senior Citizens
| Income threshold | Tax rate applicable |
| Up to Rs 5, 00000 | No Tax |
| Rs. 5, 00001 to Rs. 10, 00000 | 20% |
| Rs. 10, 00001 | 30% |
Categories Partnership Firms, Local entities, authorities
The applicable tax rate for any partnership firm & Limited liability partnership (LLP) is at a flat rate of 30%.
In case the income is more than Rs. 1.00 crore, the surcharge is applicable 12% on income tax payable amount.
Health & education less is applicable e 4% on the tax payable including surcharge.
Categories
Domestic Entity Companies
The rate applicable in this category is a flat rate of 30%. However, if the gross receipts of the companies do not go beyond Rs. 250 crores in the previous year, the rate of tax is 25%.
- Surcharge: – In case the income is between Rs. 1 crore and Rs. 10 crores, the surcharge is 7% of the income tax amount. If it exceeds Rs. 10. Crore the rate of surcharge is 12%. The income tax department provides marginal relief to companies in special cases.
- When income exceeds one crore but not exceeding ten crores of rupees, the total amount payable as income tax and surcharge shall not exceed total amount payable as income tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
- Where income exceeds ten crore rupees, the total amount payable as income tax on total income of ten crores rupees by work than the amount of income that exceeds ten crores of rupees.
Health and education less are payable @ 4% on the amount of tax computed inclusive of surcharge.
Foreign entities / Companies
| Nature of Income | Tax rate |
| If any foreign company operating in India receiver income as royalty given by Govt. of India against agreement executed the Indian concern (after 31 March 1961 and prior to 1st April 1976). | 50% |
| If any foreign company operating in India receiver income as a fee for any technical services provided as per agreement executed with an Indian concern (after 29th Feb. 1964 and prior to 1st April 1976). | 50% |
| Any other additional income earned by a foreign company operated in India. | 40% |
- Rate of surcharge 2% when income is between Rs. 1.00 Cr. To Rs. 10 Cr.
57% when income is over Rs. 10 Cr. - Health & Education less is e 4% of income tax computed inclusive of surcharge.
Cooperative Societies
Urban/Semi-Urban/rural excluding self-help groups (SHG) and agricultural societies.
| Income threshold | Tax rate applicable |
| Up to Rs. 10,000 | 10% |
| Rs. 10001 to 20,000 | 20% |
| Rs. 20001 and above | 30% |
- A surcharge is e 12% of tax amount when income is more than Rs. 1 crore.
- Health and education less are 4% on the tax computed inclusive of surcharge.
Key factors a which income tax stabs are applicable include.
- Income of assesses.
- Residential status of assesses.
- Assessment year.
- Rate of tax.
- Charge of tax.
- Threshold / Maximum amount tell income is not taxable.
- Gross Income.
The income tax stabs are applicable to.
- Any resident individual with a regular source of income.
- A Hindu undivided family (HUF).
- A Company.
- A Firm.
- An Association of Person or a body of individuals whether incorporated or not.
- Any Local authority.
Income tax stabs for Dividends
Dividend income received by individuals is taxed based on the source of dividend income e type of entity declaring the dividend income.
| Source of Dividend | Tax rate | Income tax section |
| Aggregate dividend income is less than 10 lacs is a year | -NIL- | Section 10(34) |
| Aggregate dividend income is more than 10 lacs in a year | 10% | Section 115 BBDA |
Tax stabs for Pensioners
| Income tax stabs | Tax rate | Health /Education less |
| Income up to 300,000 | No tax | __ |
| Income Rs. 300000 – Rs. 500000 | 5% | 47% |
| Income Rs. 500001 – Rs. 10,00,000 | 20% | 47% |
| Income more than Rs. 10,00,000 | 30% | 47% |
Surcharge :
- 10% of income tax where total income exceeds Rs. 50 lacs up to Rs.
- 15% of income tax where total income exceeds Rs. 1.00 crore.
