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CENTRAL GOVERNMENT EMPLOYEES - INCOME TAX

INCOME TAX RATES

ASSESSMENT YEAR 2019-2020

RELEVANT TO FINANCIAL YEAR 2018-2019

The normal tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the tax rates will be same irrespective of his age.

For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:

• Resident individual below the age of 60 years. i.e. born on or after 01-04-1959

• Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years. (i.e. born during 01-04-1939 to 31-03-1959)

• Resident individual of the age of 80 years or above at any time during the year. i.e. born before 01.04.1939

• Non-resident individual irrespective of the age.  

 

I. Normal tax rates applicable to a resident individual below the age of 60 years, i.e. born on or after 01-04-1959

INCOME SLABS INCOME TAX RATES
Upto Rs.2,50,000 NIL
Rs. 2,50,000 to 5,00,000 5% of (total income minus Rs. 2,50,000)
Less: Tax Credit - 100% of income-tax or Rs. 2,500/-, whichever is less where net income does not exceed Rs. 3,50,000/- *.
Rs. 5,00,000 to 10,00,000 Rs. 12,500 + 20% of (total income minus Rs. 5,00,000)
Rs. 10,00,000 & above Rs. 1,12,500 + 30% of (total income minus Rs. 10,00,000)

II. Normal tax rates applicable to a resident individual of the age of 60 years or above at any time during the year but below the age of 80 years, i.e. born during 01.04.1939 to 31.03.1959

INCOME SLABS INCOME TAX RATES
Upto Rs. 3,00,000 NIL
Rs. 3,00,000 to 5,00,000 5% of (total income minus Rs. 3,00,000)
Less: Tax Credit - 100% of income-tax or Rs. 2,500/-, whichever is less where net income does not exceed Rs. 3,50,000/- *.
Rs. 5,00,000 to 10,00,000 Rs. 10,000 + 20% of (total income minus Rs. 5,00,000)
Rs. 10,00,000 & above Rs. 1,10,000 + 30% of (total income minus Rs. 10,00,000)

III. Normal tax rates applicable to a resident individual of the age of 80 years or above at any time during the year, i.e. born before 01.04.1939

INCOME SLABS INCOME TAX RATES
Upto Rs. 5,00,000 NIL
Rs. 5,00,000 to 10,00,000 20% of (total income minus Rs. 5,00,000)
Rs. 10,00,000 & above Rs. 1,00,000 + 30% of (total income minus Rs. 10,00,000)

* A resident individual (whose net income does not exceed Rs. 3,50,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,500, whichever is less. 

SURCHARGE

Surcharge is levied @ 10% on the amount of income-tax if net income exceeds Rs 50 Lakh but doesn’t exceed Rs. 1 crore and @ 15% on the amount of income tax if net income exceeds Rs. 1 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income tax plus surcharge.

However, marginal relief is available from surcharge in such a manner that in the case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

Further, in a case where net income exceeds Rs. 1 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

HEALTH AND EDUCATION CESS ON INCOME TAX

The amount of Income-tax shall be further increased by Health Cess of 1%, Education Cess of 2% and SHEC of 1% on Income-tax.

ALTERNATE MINIMUM TAX

In the case of a non-corporate taxpayer to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+HEC) of "adjusted total income" computed as per section 115JC. For provisions relating to AMT refer tutorial on “MAT/AMT” in tutorial section.

However, w.e.f. Assessment Year 2019-20, In case of a unit located in an IFSC which derives its income solely in convertible foreign exchange, the rate of AMT under section 115JF shall be at the rate of 9% instead of existing rate of 18.50%.

PERMANENT ACCOUNT NUMBER (PAN)

Every assessee is required to obtain 10 alpha numeric Permanent Account Number (PAN) and quote the same in his returns, challans & correspondence. PAN can be obtained by applying in new Form No.49A at the designated Service Centres of UTITSL OR NSDL. PAN is essential for processing the Return of Income and for giving credit for taxes paid. If a person who is required to quote his Permanent Account Number fails to do so or intimates false number, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000.

INCOME TAX PAYMENTS

Advance tax payments and Self-assessment tax payments have to be made in Challan No.280.

# Cost Inflation Index – For Capital Gain

The cost inflation indices for the financial years so far have been notified as under:

    Financial Year Cost Inflation Index    
    2001 – 02 100    
    2002 – 03 105    
    2003 – 04 109    
    2004 – 05 113    
    2005 – 06 117    
    2006 – 07 122    
    2007 – 08 129    
    2008 – 09 137    
    2009 – 10 148    
    2010 – 11 167    
    2011 – 12 184    
    2012 - 13 200    
    2013 - 14 220    
    2014 - 15 240    
    2015 - 16 254    
    2016 - 17 264    
  2017 – 2018272    
      

# CBIT Notification No. 44/2017 - F.No. 370142/11/2017-TPL dated 05-06-2017

This notification will come into effect on 01-04-2018 and apply to the assessment year 2018-19



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