Tax Rates

1. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person

Less: Rebate under Section 87A [see Note]
Add: Surcharge and Education Cess [see Note]

Assessment Year 2019-20

Less: Rebate under Section 87A [see Note]
Add: Health and Education Cess [see Note]

2. In case of a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)

Assessment Year 2018-19

Less: Rebate under Section 87A [see Note]
Add: Surcharge and Education Cess [see Note]

Assessment Year 2019-20

Less: Rebate under Section 87A [see Note]
Add: Health and Education Cess [see Note]

3. In case of a resident super senior citizen (who is 80 years or more at any time during the previous year)

Assessment Year 2018-19

Add: Surcharge and Education Cess [see Note]

Assessment Year 2019-20

Add: Surcharge and Education Cess [see Note]

Assessment Year 2018-19

a) Surcharge:

i) The amount of income-tax shall be increased by a surcharge at the rate of 10% of such tax, where total income exceeds fifty lakh rupees but does not exceed one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds fifty lakh rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees).

ii) The amount of income-tax shall be increased by a surcharge at the rate of 15% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore 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).

b) Education Cess:The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

d) 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.

Assessment Year 2019-20

a) Surcharge:

i) The amount of income-tax shall be increased by a surcharge at the rate of 10% of such tax, where total income exceeds fifty lakh rupees but does not exceed one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds fifty lakh rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees).

ii) The amount of income-tax shall be increased by a surcharge at the rate of 15% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income one crore 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).

b) Health and Education Cess:

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

c) 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.

4. Partnership Firm

I. For the Assessment Year 2018-19, a partnership firm (including LLP) is taxable at 30%.

Add:

a) Surcharge:

The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore 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).

b) Education Cess:

The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

c) Secondary and Higher Education Cess:

The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

II. For the Assessment Year 2019-20, a partnership firm (including LLP) is taxable at 30%.

Add:

a) Surcharge:

The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore 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).

b) Health and Education Cess:

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

5. Local Authority

I. For the Assessment Year 2018-19, a local authority is taxable at 30%. Add:

d) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore 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).

e) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

f) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

II. For the Assessment Year 2019-20, a local authority is taxable at 30%. Add:

a) Surcharge:

The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore 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).

b) Health and Education Cess:

The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

6. Domestic Company

I. For the Assessment Year 2018-19, a domestic company is taxable at 30%. However, tax rate would be 25% where turnover or gross receipt of the company does not exceed Rs. 50 crore in the previous year 2015-16.

Add:

a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds one crore rupees but not exceeding ten crore 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.

(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

II. For the assessment year 2019-20, a domestic company is taxable at 30%. However, the tax rate would be 25% if turnover or gross receipt of the company does not exceed Rs. 250 crore in the previous year 2016-17.

Add:

a) Surcharge:The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds one crore rupees but not exceeding ten crore 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.

(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

b) Health and Education Cess:The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

7. Foreign Company

Assessment Year 2018-19 and Assessment Year 2019-20

Add:

a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds one crore rupees but not exceeding ten crore 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.

(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

For Assessment Year 2018-19

b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

For Assessment Year 2019-20

Health and Education Cess:The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

8. Co-operative Society

Assessment Year 2018-19 and Assessment Year 2019-20

Add:

a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore 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).

For Assessment Year 2019-20

b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

c) Secondary and Higher Education Cess:The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.

For Assessment Year 2019-20

Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

The post Income Tax Rates Assessment Year 2018-19, 2019-20 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

As per the Finance Act, 2017, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial year 2017-18 (i.e. Assessment Year 2018-19) at the following rates:

2.1 Rates of tax

A. Normal Rates of tax:

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more but less than eighty years at any time during the financial year:

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

2.2 Surcharge on Income tax:

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Act, shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act, will be as under:

(a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten percent of such income-tax and

(b) having a total income exceeding one crore rupees, at the rate of fifteen percent of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding;-

(a) Fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;

(b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

2.3.1 Education Cess on Income tax:

The amount of income-tax including the surcharge if any, shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.

2.3.2 Secondary and Higher Education Cess on Income-tax:

An additional education cess is chargeable at the rate of one percent of income-tax including the surcharge, if any, but not including the Education Cess on income tax as in 2.3.1.

The post Rates of Income-Tax for the financial year 2017-18 appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

ANNEXURE-I

SOME ILLUSTRATIONS

Example 1

For Assessment Year 2018-19

(A) Calculation of Income tax in the case of an employee(Male or Female) below the age of sixty years and having gross salary income of:

i) Rs.2,50,000/- ,

v) Rs. 1,10,00,000/-

(B) What will be the amount of TDS in case of above employees, if PAN is not submitted by them to their DDOs/Offices:

Computation of Total Income and tax payable thereon

* After rebate of Rs 2500 u/s 87A

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“The tax slab is expected to be raised in favour of government employees”

According to information available, the annual budget, to be presented by Finance Minister Arun Jaitley on February 1, could have some sops for the middle-class families.

Post the Seventh Pay Commission, most government servants now find themselves within the tax slab. For a number of years now, government servants have been demanding that the tax-exemption slab be raised to Rs. 5 lakhs. The current exemption stands at Rs. 2.5 lakhs. There is a five percent tax on the income in the Rs. 2.5 lakhs to 5 lakhs bracket.

There are prevalent talks that the government could revise the slabs. This could come as a big boon for middle income groups, especially the salaried class who are suffering due to acute inflation. No changes were made in the tax slab last year, but the tax of 10 percent on the Rs. 2.5 lakhs to 5 lakhs slab was brought down to five percent.

The budget, to be presented next month, is expected to reduce the tax on the Rs. 5 lakhs to Rs. 10 lakhs slab to 10 percent (it currently stands at 20 percent). This could spell huge relief to the salaried class.

Similarly, the tax on the Rs. 10 lakhs to Rs. 20 lakhs slab could be reduced to 20 percent (currently stands at 30 percent). A tax of 30 percent is collected on the amount exceeding Rs. 20 lakhs. Tax rate on this slab is the lowest in India when compared to most other countries.

There is currently no exclusive tax slab for those earning between Rs. 10 lakhs and 20 lakhs, and those earning more than Rs. 10 lakhs automatically end up paying 30 percent in taxes.

The income tax department could raise the tax slab in order to provide relief to the salaried class that continues to suffer from the rise in prices of essential commodities due to inflation.

There are, however, some unconfirmed reports that claim that the tax slab is not likely to be raised to Rs. 5 lakhs.

The post Budget 2018 – Will income tax limit raise to Rs 3 or 5 lakh? appeared first on CENTRAL GOVERNMENT EMPLOYEES NEWS.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE

LOK SABHA
UNSTARRED QUESTION No. 1355
TO BE ANSWERED ON FRIDAY, THE 22ND DECEMBER, 2017
01, PAUSHA, 1939 (SAKA)

AMEND INCOME TAX RATES

1355. SHRI DEVENDRA SINGH BHOLE:

Will the Minister of FINANCE be pleased to state:

(a) whether the Government proposes to amend the present rates of income tax so that more people may pay income tax;

(b) if so, the details thereof and the benefits likely to accrue to common man and the Government by this step; and

(c) if not, the reasons therefor?

ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI SHIV PRATAP SHUKLA)

(a) to (b) No Madam. Currently, there is no such proposal under consideration.

(c) The rates of income tax are prescribed through the Finance Act every year

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Government Sets-Up A Committee to Simplify The Provisions of The Income Tax Act, 1961

The Government of India has constituted a Committee with a view to simplify the provisions of the Income Tax Act, 1961, with the following composition:

(i) Justice R.V. Easwar, (Retd.), former Judge, Delhi High Court and former President, ITAT – Chairman

(ii) Shri V.K. Bhasin, former Law Secretary – Member

(iii) Shri Vinod Jain, Chartered Accountant – Member

(iv) Shri Rajiv Memani, Consultant – Member

(v) Shri Ravi Gupta, Sr. Advocate – Member

(vi) Shri Mukesh Patel, Tax-Advocate – Member

(vii) Shri Ajay Bahl, Consultant – Member

(viii) Shri Pradip P. Shah, Investment Adviser – Member

(ix) Shri Arvind Modi, IRS (IT:81009) – Member

(x) Dr. Vinay Kumar Singh, IRS (IT:95006) – Member

The Terms of Reference (ToR) of the Committee shall be as follows:

i) To study and identify the provisions/phrases in the Act which are leading to litigation due to different interpretations;

ii) To study and identify the provisions which are impacting the ease of doing business;

iii) To study and identify the areas and provisions of the Act for simplification in the light of the existing jurisprudence;

iv) To suggest alternatives and modifications to the existing provisions and areas so identified to bring about predictability and certainty in tax laws without substantial impact on the tax base and revenue collection; and

The Committee shall set its own procedures for regulating its work. The Committee can also work in Sub-Groups and the draft prepared by the Sub-Groups can then be approved by the whole Committee. The Committee will put its draft recommendations in the public domain. After stakeholder consultations, the Committee will formalise its recommendations. The Committee can give its recommendations in batches. The First Batch containing as many recommendations as possible shall be submitted by 31st January, 2016.

The Term of the Committee shall be for a period of one year from the date of its constitution.

PIB

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The Income Tax Department has clarified that circulation of Fake order dated 26.9.2015 for extension of due date for filing of Audit report and return of Income for Assessment Year 2015-16 is fraudulent. The Government has not extended the due date for filing of returns and audit report due by 30th September 2015. Tax payers and practitioners are advised not to give any credence to the fraudulent order.

It has been brought to the notice of the Government that a fake order dated 26th September 2015 supposedly under Section 119 of the Income-tax Act 1961 under the signature of one Upmanyu Reddy, Under Secretary to the Government of India is in circulation. The fake order extends the due date for filing of audit report under section 119 of the Income-tax Act to 15 October 2015.

It is clarified the order is fraudulent. The Government has not extended the due date for filing of returns and audit report due by 30th September 2015. Tax payer and practitioners are advised not to give any credence to the fraudulent order purportedly signed by one Upmanyu Reddy.

PIB

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Finance minister Arun Jaitley may announce during the Budget

The Modi government may declare a raise in the Income Tax Exemption limit from the current 2.5 lacs to 3 lacs.

Finance Minister Arun Jaitley may announce an increase in the Income Tax Exemption limit to 3 lacs in the 2015-16 budget meeting, which will be a great relief to the taxpayers, particularly for Central Government Employees.

If this proposal is accepted, then there are chances that changes are made in the Income Tax Rate slab, which may also provide relief to the people of the High Income group.

It is being understood that the government can give a tax exemption up to an annual income of Rs 3 lacs; where a 10% tax was paid for an income between 2.5 to 5 lacs, there it is expected that people with an annual income of Rs 3 lacs to 10 lacs will have to pay a tax of 10%. Similarly, where people with an annual income of Rs 5-10 lacs had to pay a tax of 20%, it is expected that this tax rate would be extended for the income group of 10-20 lacs.

Similarly, the 30% tax rate for the income above 10 lacs is expected to be increased to a limit between 20 lacs and 1 crore for implementation. It has been told that the government is making easy the path of the High Income group and for above 1 crore, and is in the process of collecting a lump sum of 33% instead of the interest over 30% and surcharge of 10%.

According to sources, the special Investigation team formed in relation to black money has recommended a maximum cash possession limit of approximately 15 lacs which may also be declared.

Expected Potential Relief in Income Tax

Present Income Tax Slab

Proposed Income Tax Slab

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CIRCULAR NO : 17/2014

F.No. 275/192/2014-IT(B)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
******

North Block, New Delhi
Dated 10th December, 2014

SUBJECT: INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2014-15 UNDER SECTION 192 OF THE INCOME TAX ACT, 1961.

*****

Reference is invited to Circular No.08/2013 dated 25.10.2013 whereby the rates of deduction of income-tax from the payment of income under the head “Salaries” under Section 192 of the Income-tax Act, 1961 (hereinafter ‗the Act‘), during the financial year 2013-14, were intimated. The present Circular contains the rates of deduction of income-tax from the payment of income chargeable under the head “Salaries” during the financial year 2014-15 and explains certain related provisions of the Act and Income-tax Rules, 1962 (hereinafter the Rules). The relevant Acts, Rules, Forms and Notifications are available at the website of the Income Tax Department- www.incometaxindia.gov.in.

INCOME-TAX DEDUCTION FROM SALARIES DURING THE FINANCIAL YEAR 2014-15

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By PTI

NEW DELHI: Ahead of the budget, Finance Minister Arun Jaitley today said the NDA government is not in favour of high taxation, instead it would want to leave more money in the hands of consumers to fuel demand and growth.

The minister also pledged to make the budgetary process more transparent so as to present the real picture of public finances before the people.

“High taxation is not the only route to achieve the target of larger revenue … we are not going to take this route,” Jaitley said while speaking at a function of private news channel CNBC Awaaz.

“We believe that the consumer should have money in hand and by spending that money, production will increase and the country will be benefited,” the minister said.

The government raised income tax exemption limit from Rs 2 lakh to Rs 2.5 lakh in the last budget, he said.

Jaitley will present his first full fledged budget in the Lok Sabha next month.

He further said that a competitive, non-adversarial and stable tax regime was necessary to attract foreign investors who have various options available to them.

Read more at : New Indian Express

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