Income tax stabs which are applicable in 2019

Income tax stabs

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.

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