Indian Income Tax Rates for Assessment Year 2018-19

Lately, we’ve been getting a lot of telephonic queries regarding income tax rates for the financial year 2017-18 i.e. assessment year 2018-19, mostly from salaried people in and around New Delhi, India, who are liable to file Income tax returns. Here is a small compilation regarding the applicable income tax rates:

  1. For Individuals, HUF, BOI, HUF, Artificial judicial person (Whether resident or Non-resident)
Income Tax Rate
Upto Rs. 2,50,000/-(Basic Exemption) Nil
Greater Than Rs. 2.5 Lakhs but upto Rs. 5 lakhs 5%
Greater Than Rs. 5 Lakhs but upto Rs. 10 lakhs 20%
Greater Than Rs. 10 Lakhs 30%
  1. For Senior Citizen (Resident individual who attained the age of 60 or more in the previous year)
Income Tax Rate
Upto Rs. 3,00,000/-(Basic Exemption) Nil
Greater Than Rs. 3 Lakhs but upto Rs. 5 lakhs 5%
Greater Than Rs. 5 Lakhs but upto Rs. 10 lakhs 20%
Greater Than Rs. 10 Lakhs 30%
  1. For Super Senior Citizen (Resident individual who attained the age of 80 or more in the previous year)
Income Tax Rate
Upto Rs. 5,00,000/-(Basic Exemption) Nil
Greater Than Rs. 5 Lakhs but upto Rs. 10 lakhs 20%
Greater Than Rs. 10 Lakhs 30%

Note: A surcharge i.e. Tax on tax, @10% of tax if Net Taxable Income(Total Income)> Rs. 50 lakhs but upto Rs. 1 Crore & @ 15% of tax if Net Taxable Income(Total Income) > Rs. 1 Crore.

  1. For Companies
Category Tax Rate
Domestic Companies 30%
Foreign Companies 40%

Surcharge i.e. Tax on tax, in case of companies

Total Income(NTI) Domestic Company Foreign Company
Greater than Rs. 1 crore but upto Rs. 10 Crore 7% 2%
Greater than Rs. 10 Crore 12% 5%
  1. For Partnership firms/LLP/Local Authority, the tax rate is @ 30% and surcharge i.e. tax on tax, is @ 12% of Tax if Net taxable income > Rs. 1 crore.

The income tax shall be calculated as per the rates given above, though provisions of other exemptions and provisions of marginal relief should be looked into before calculating the exact amount of tax. 

In all the above cases, Education cess is applicable @ 3% of tax(Including surcharge)

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