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income tax proposals

 

Proposed rates of Income Tax for A.Y. 2018-2019

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 income-tax and surcharge on total income exceeding Rs.50 Lakhs but not exceeding Rs.1 Crore, shall not exceed the total amount payable as income-tax 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.         Co-operative Societies:

 

The rates of income-tax for Assessment Year 2018-19 are the same as were applicable to Assessment Year 2017-18.

The amount of income-tax shall be increased by a surcharge at the rate of twelve per cent of such income-tax in case of a co-operative society having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees 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.

 

C.         Firms:

 

The rates of income tax for Assessment Year 2018-2019 are the same as were applicable to Assessment Year 2017-2018.

The amount of income-tax shall be increased by a surcharge at the rate of twelve per cent of such income-tax in case of a firm having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees 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.

 

 

D.        Local Authorities:

 

The rates of income tax for Assessment Year 2018-2019 are the same as were applicable to Assessment Year 2017-2018.

The amount of income-tax shall be increased by a surcharge at the rate of twelve per cent of such income-tax in case of a local authority having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees 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.

 

E.         Companies:

 

The rates of income-tax 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 income-tax shall be twenty five per cent. of the total income if the total turnover or gross receipts of the previous year 2015-16 does not exceed fifty crore rupees and in all other cases the rate of Income-tax 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 2016-17.

 

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 income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, 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. The total amount payable as income-tax and surcharge on total income exceeding ten crore rupees, shall not exceed the total amount payable as income-tax 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 115-O, 115QA, 115R, 115TA or 115TD), the surcharge shall be levied at the rate of twelve per cent.

 

For financial year 2017-18, additional surcharge called the "Education Cess on income-tax" and "Secondary and Higher Education Cess on income-tax" 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.

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