Tax Rates: Income Tax Slab For AY 2018-19

Income Tax Slab Rates for FY 2018-19 (Assessment Year 2019-20)

Your income from salary, business or other income like income from fixed/recurring deposits etc are taxed as per income tax slabs. Budget 2018 has made no change to the tax slab rates, however following changes have been made: 

  • No change in Tax Slabs
  • Additional cess of 1% for health care making total cess to 4% of income tax payable
  • Standard deduction of Rs 40,000 for Salaried and Pensioners
  • Transport Allowance of Rs 1,600 per month & Medical Reimbursement of Rs 15,000 per year abolished for salaried (but remains for differently enabled). So net gain of Rs 5,800 for salaried [Rs 40,000 – Rs 1600 * 12 – Rs 15,000]
  • Exemption on interest income from Rs 10,000 to Rs 50,000 for senior citizens.
  • Medical Insurance premium exemption for senior citizen increased from Rs 30,000 to Rs 50,000 u/s 80D
  • Medical expenses will see increased tax benefits for senior citizens. 100,000 on critical illness u/s 80DDB

The Income Tax slab rates are different for different categories of taxpayers. We can divide Income Tax slab rates for the following categories:

  • Individual or HUF or Association of Person or Body of Individual or Artificial Juridical Person
  • Resident senior citizen
  • Resident super senior citizen
  • Partnership Firm
  • Local Authority
  • Domestic Company
  • Foreign Company
  • For a Co-operative Society

Slab Rates for Individual (up to 60 years) or HUF or Association of Person or Body of Individual or Artificial Juridical Person for FY 2018-19 (AY 2019-20)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 2,50,000 Nil
2,50,000-5,00,000 5%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 5,00,000. The maximum amount of rebate allowed is Rs 5,000.
Add: Surcharge – A surcharge @ 15% of tax is applicable if income exceeds Rs 1 crore. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Slab Rates for Resident Senior Citizen (between 60 and 80 years of age) for FY 2018-19 (AY 2019-20)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 3,00,000 Nil
3,00,000-5,00,000 5%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 5,00,000. The maximum amount of rebate allowed is Rs 5,000.
Add: Surcharge – A surcharge @ 15% of tax is applicable if income exceeds Rs 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Slab Rates for Resident Super Senior Citizen (80 years and above) for FY 2018-19 (AY 2019-20)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 5,00,000 Nil
5,00,000 – 10,00,000 20%
Above 10,00,000 30%
Add: Surcharge – A surcharge @ 15% of tax is applicable if income exceeds Rs 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Slab Rates for a Partnership Firm (including LLP) for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
30% 12% 4%
Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Slab Rates for a Local Authority for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
30% 12% 4%
Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Slab Rates for a Domestic Company for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
29% for income up to Rs 5 crore 7% for income between Rs 1 crore & Rs 10 crore 4% of income tax plus surcharge
30% for income exceeding Rs 5 crore 7% for income between Rs 1 crore & Rs 10 crore and 12% if income exceeds Rs 10 crore
Add: Surcharge – A surcharge @ 7% or 12% of tax is applicable if income exceeds Rs 1 crore. However, surcharge is subject to marginal relief.

  • If income lies between Rs 1 crore & Rs 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.
  • If income exceeds Rs 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 10 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Slab Rates for a Foreign Company for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
Income b/w Rs 1 crore & Rs 10 crore Income exceeds Rs 10 crore
50% on royalty received from government or Indian concern* 2% 5% 4%
40% on any other income 2% 5%
*Note: Royalty here means –

  • Royalty received from government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961 and 31 March, 1976
  • Fees for providing technical services in pursuance of an agreement (approved by Central government) made between February 29, 1964 and April 1, 1976

Add: Surcharge – A surcharge is applicable in the following 2 conditions subject to marginal relief:

  • If income lies between Rs 1 crore & Rs 10 crore, the applicable surcharge should be 2%.
  • If income exceeds Rs 10 crore, the applicable surcharge should be 5%.

Marginal Relief on Surcharge –

  • If income lies between Rs 1 crore & Rs 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.
  • If income exceeds Rs 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 10 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

Slab Rates for a Co-operative Society for FY 2018-19 (AY 2019-20)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 10,000 Nil
10,000-20,000 20%
Above 20,000 30%
Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs 1 crore. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

49 Replies to “Tax Rates: Income Tax Slab For AY 2018-19”

  1. I am a senior citizen-(age 70 years) and a pensioner. However I also do limited consulting on my own. Will I be eligible to avail Standard Deduction on my pension amount?

    1. Very informative and useful. I would request if some examples for government pensioners say one upto 5 lakhs,10 lakhs and above having CGHS facility and otherwise are illustrated.

  2. I am senior citizen and my income comes ONLY from LTCG on shares. If I have a LTCG 400,000 would my tax be NIL (100,000 excempted from LTCG and 300,000 as 0% tax for senior citizens). Kindly enlighten me.

    1. A resident individual can adjust the basic exemption limit against long term capital gains (LTCG). A resident individual can adjust the LTCG but such adjustment is possible only after making adjustment of other income. In other words, first income other than LTCG is to be adjusted against the basic exemption limit and then the remaining limit (if any) can be adjusted against LTCG. In your case since you are saying that you do not have any other income, LTCG can be set off against basic exemption limit and hence tax liability will be nil.

  3. Dear Sir Good Day! Please send the routine updates of Income Tax on my below mail id and for this co-operation I will be grateful to you. My mail id is :- 1972.tanishq@gmail.com

    Thanks

    Surender Kumar
    Cell No. +91 9050961616, 9050962626 &
    9254100556

  4. Standard deduction of Rs 40,000 for Salaried and Pensioners
    Please explain it by some example .
    I am a govt. Employees person of HP Govt. Is this benefits me .

    1. “There is benefit as now you are getting a standard deduction of Rs 40,000 vis-a-vis transport and medical benefits. It may benefit those people who were using only up to Rs 5,000 to 6,000. There will be many cases where people were not availing this transport and medical benefits. There is some level of benefit for employees,”
      What exactly is standard deduction? It’s an amount that you can simply deduct from your taxable income without the need for any proof. Which means, when you’re filing your tax returns this year, if your taxable income is, say, Rs 5.6 lakh, you can simply remove Rs 40,000 from it, and calculate from a starting point of Rs 5.2 lakh.

      But here’s the catch: You cannot claim travel and medical allowance. In the previous financial year (2017-18), the travel and medical allowance were at Rs 19,200 and Rs 15000 per year respectively.

      So in effect, you have a respite of Rs 5,800 on your taxable income for the year.

      The only upside? To avail the allowances, you earlier had to produce bills, which you do not have to do now. (No more begging your local medical store to give you fake bills!)
      Vikesh Singh
      +918439867088

  5. Thanks for this very well explained article.

    I think rebate u/s 87A is upto Rs. 2500 only when income is upto Rs. 3.5 lacs. Plz confirm.

    Kind regards
    Vivek

  6. Interest RS. 50000/-exemption on FD for senior citizen is extra on total rebate of RS. 150000/- against sec 80C. Hence : 300000 + 40000(SD) +50000 (FD Interest) = 390000/- plz confirm…

  7. Plz let me know that a senior citizen who lives in a rented house is eligible for deduction in the gross salary.He s not getting any HRA from any source.

  8. A property received from my uncle in family settlement as gift 2 years 9 months ago. My uncle transfer the property to my father. Now my father sold that property @ 487000. Now what about income tax

  9. Whether an interest on Deposits up to Rs. 50,000/- has to be shown as income while computing tax Or up Rs. 50,000/- not needed to be shown as income.

  10. The name and dignity of creater shall be known before we subscribe this page.
    How to subscribe your page?
    The window came only once and then disappear. Repeated flash of window may be provided.

  11. If a senior citizen has income by wat of pension, rent & FD interest, how is tax computed? Pls explain with an example after taking all exemptions including medical premium.

  12. In ur clarification, I think the term INCOME should be TAXABLE INCOME. Plz confirm me. Further if I’ve GROSS INCOME Rs 6,25,000/, then WHAT WILL BE MY TAX AMOUNT ? Plz give me in details.

  13. In ur clarification, I think the term INCOME should be TAXABLE INCOME. Plz confirm me. Further if I’ve GROSS INCOME Rs 6,25,000/ for FY ’18-’19, then WHAT WILL BE MY TAX AMOUNT ? Plz give me in details.

  14. Billion thanks for your latest update on income tax-2018-19 and 2020.I am a senior citizen and was eager to know about it.
    Again I convey thanks for the update.
    Chandrakant

  15. I am a senior citizen retired from private sector and have no pension. I do a limited consultancy and my other income is interest from FDs Senior citizen savings scheme. Please advise if this additional rebate of 50,000/- can be claimed by me?

  16. Standard deduction of Rs 40,000 for Salaried and Pensioners.

    Are you sure about PENSIONERS entitled for Rs 40000. Please clarify

    1. Pension is treated as Salary as per Income Tax Act. Hence all deductions are eligible as for salaried persons.

  17. THANK YOU VERY MUCH FOR THE DETAILED INFORMATION.

    If a person completes 60 years towards the end of the year, is he entitled to Senor citizen concessions during the year?

    Is there any cut off date for the same?

    My email ID be included for such updates/newsletter in the future.

    Regards

  18. I am a senior citizen.Age 74 yrs retired from private sector. AGAINST a superannuation fund by my employer with LIC , i recieve an annuity of Rs 30000 per month from LIC.Is this pension/annuity elligible for standard reduction for income tax purpose ? Rajinder Malik Febroary 10 ,2018

  19. Please correct the your information about the 87 A rebate which has been changed as 2500/- and up to income 350000/-

  20. Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.

  21. I am government contractor & firstly have to compition at the time of tender bit . I m paying payment by cheque , but maximum dealers r unable to give billing of gst & there is to much material that is without billing , please we have to addressed it,

  22. Good Compilation and informative. Thanks.
    Rebate u/s 87A is Rs.2500 upto income of Rs. 3.5 lakhs for A Y 2018-19.
    Has it been changed to Rs.5000/- upto income of Rs.5,00,000 /-?
    Please clarify.
    Thanks and Regards.

  23. Income tax needs always friendly and each every person to involving happily , make the slab like this ……
    1 , 00 to 5,00,000 exemption
    2 , 5,00,001 to 10,00,000 3%
    3 , 10,00,001 to 20,00,000 5%
    4 , 20,00,001 to 30,00,000 10%
    5 , 30,00,001 to 40,00,000 15%
    6 , 40,00,001 to 50,00,000 20%
    7 , 50,00,001 to 60,00,000 25%
    8 , 60,00,001 above 30%
    if do like this, every body happily involve with system .
    tax saving bond exemption up to 1,00,000 1 to 3rd slab 2,00,000 4th and above

  24. No relief for middle class employees and pensioners where as 100% exemption for the payments in shape of salary/honorarium and pensions to politicians. Needs for discussion.

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