income tax proposals
Proposed rates of Income Tax for A.Y.
20182019
A. Rates for
individuals / HUFs/AOPs/BOIs
General Assessee


Basic
exemption

Rs.2,50,000/


Tax
Rate

Between
2,50,001/ and 5,00,000/

5%

Between
5,00,001/ and 10,00,000/

20%

Above
10,00,000/

30%

Senior Citizens – Resident (Age 60 Yrs & above
but below 80 Years)


Basic
exemption

Rs.3,00,000/

Tax
Rate


Between
3,00,001/ and 5,00,000/

5%

Between
5,00,001/ and 10,00,000/

20%

Above
10,00,000/

30%

Senior Citizens – Resident (Age 80 Yrs & above
)


Basic
exemption

Rs.5,00,000/

Tax
Rate


Between
5,00,001/ and 10,00,000/

20%

Above
10,00,000/

30%





A Rebate of tax upto Rs. 2500/ will be allowed to a
person whose total income does not exceed Rs. 3.5 Lakh.
Surcharge will be leviable
at
(i) 10% in all the above cases where income is exceeding Rs. 50
lakhs but not exceeding Rs.1 Crore
(ii) 15% of such income in
all the above cases having total income exceeding Rs.1 Crore.
However, in case of (i) above, the total amount payable as
incometax and surcharge on total income exceeding Rs.50 Lakhs but not
exceeding Rs.1 Crore, shall not exceed the total amount payable as incometax
on a total income of Rs.50 Lakhs by more than the amount of income that exceeds
Rs.50 Lakhs.
Further, in case of ( ii) above, the total amount payable as
income tax and surcharge on total income exceeding Rs.1 Crore shall not exceed
the total amount payable as income tax on a total income of Rs.1 Crore by more
than the amount of income that exceeds Rs.1 Crore.
B.
Cooperative Societies:
The
rates of incometax for Assessment Year 201819 are the same as were applicable
to Assessment Year 201718.
The amount of
incometax shall be increased by a surcharge at the rate of twelve per cent of
such incometax in case of a cooperative society having a total income
exceeding one crore rupees.
However, the total
amount payable as incometax and surcharge on total income exceeding one crore
rupees shall not exceed the total amount payable as incometax on a total
income of one crore rupees by more than the amount of income that exceeds one
crore rupees.
C.
Firms:
The
rates of income tax for Assessment Year 20182019 are the same as were
applicable to Assessment Year 20172018.
The amount of
incometax shall be increased by a surcharge at the rate of twelve per cent of
such incometax in case of a firm having a total income exceeding one crore
rupees.
However, the total
amount payable as incometax and surcharge on total income exceeding one crore
rupees shall not exceed the total amount payable as incometax on a total
income of one crore rupees by more than the amount of income that exceeds one
crore rupees.
D.
Local Authorities:
The
rates of income tax for Assessment Year 20182019 are the same as were
applicable to Assessment Year 20172018.
The amount of incometax shall be increased by a surcharge at
the rate of twelve per cent of such incometax in case of a local authority
having a total income exceeding one crore rupees.
However, the total amount payable as incometax and surcharge on
total income exceeding one crore rupees shall not exceed the total amount
payable as incometax on a total income of one crore rupees by more than the
amount of income that exceeds one crore rupees.
E.
Companies:
The rates of incometax in the case of
companies have been specified in Paragraph E of Part III of the First Schedule
to the Bill. In case of domestic company, the rate of incometax shall be
twenty five per cent. of the total income if the total turnover or gross receipts
of the previous year 201516 does not exceed fifty crore rupees and in all
other cases the rate of Incometax shall be thirty per cent. of the total
income. In the case of company other than domestic company, the rates of tax
are the same as those specified for the financial year 201617.
Surcharge at the rate of seven per cent shall continue to be
levied in case of a domestic company if the total income of the domestic
company exceeds one crore rupees but does not exceed ten crore rupees.
Surcharge at the rate of twelve per cent shall continue to be levied if the
total income of the domestic company exceeds ten crore rupees. In case of
companies other than domestic companies, the existing surcharge of two per
cent. shall continue to be levied if the total income exceeds one crore rupees
but does not exceed ten crore rupees. Surcharge at the rate of five per cent
shall continue to be levied if the total income of the company other than
domestic company exceeds ten crore rupees.
However, the total amount payable as incometax and surcharge on
total income exceeding one crore rupees but not exceeding ten crore rupees,
shall not exceed the total amount payable as incometax on a total income of
one crore rupees, by more than the amount of income that exceeds one crore
rupees. The total amount payable as incometax and surcharge on total income
exceeding ten crore rupees, shall not exceed the total amount payable as
incometax and surcharge on a total income of ten crore rupees, by more than
the amount of income that exceeds ten crore rupees.
In other cases (including sections 115O, 115QA, 115R, 115TA or
115TD), the surcharge shall be levied at the rate of twelve per cent.
For financial year 201718, additional surcharge called the
"Education Cess on incometax" and "Secondary and Higher
Education Cess on incometax" shall continue to be levied at the rate of
two per cent. and one per cent. respectively, on the amount of tax computed,
inclusive of surcharge (wherever applicable), in all cases. No marginal relief
shall be available in respect of such Cesses.
