What Is The Income Tax Slab India 2018-2019?
On the 1st of February 2018, the finance bill for the financial year 2018-19 was presented in the parliament and passed. This finance bill only determines the Income-tax slab India for the financial year 2018-19. This happens every year of fixing the income tax slab to be collected from the Indian public.
The reason for changing the slabs in budgets every year:
- Economic status of the country
- The purchasing power of the consumers
- Surplus or deficient budgetary proposals
- Adverse situations like wars, natural calamities
What are the changes this FY from 2017-2018?
Actually, for the past nearly 20 years after the dream budget in the year 1997, there is no significant change in the tax slabs in India. The difference between the income tax slab india for the past two years is very negligible with no change in the slabs but for minor changes in the exemptions and the deductions.
What is the income tax slab India for the financial year 2018-19?
- For resident individuals, non-resident individuals, HUFs, it is
- Income up to 2.5 lakhs – No tax
- Income from 2.5 – 5 lakhs – 5 %
- Income between 5 – 10 lakhs – 20 %
- Income above 10 lakhs – 30 %
- Health and education cess is 4 % and the surcharge for income between 50lakhs to 1 core is 10 % and above 1 crore is 15 %
- For associations of persons, bodies of individuals and other artificial judicial persons the slabs and the surcharge are the same. The education cess is 2 % and the secondary and higher education cess is another 1 %.
- For senior citizens, the first slab is increased from 2.5 lakhs to 3 lakhs and seniors up to 3 lakhs don’t have to pay income tax. The other slabs from 3-5, 5-10 and above 10 are the same along with the surcharge and health education cess.
- For super senior citizens, there is no tax till the income crosses 5 lakhs. Above 5-6 is 20 % and above 10 lakhs is 30 % and the surcharge and cess are the same.
For partnership firms, LLPs or limited liability partnerships, local entity and or authorities, and domestic entity companies the income tax is flat 30 %.