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Writer's pictureCA Kuldeep Arora

Analysis of Union Budget 2019 - Rate of Income Tax for FY 2019-20 





Proposed rate of Income Tax for FY 2019-20 for various types of assessees are as follows:


Tax Rates

i. Personal Tax Rates

Income (Rs.) Proposed Income Tax for FY 2019-20 (Rs.)

Up to 2,50,000 Nil

2,50,001-5,00,000 5%

5,00,001-10,00,000 20%

10,00,001 and above 30%

Note:

a. Cess of 4% is leviable on the amount of income tax and surcharge, if any.

b. Rebate under Section 87A remains unchanged for a resident individual (whose income does not exceed 5,00,000). The amount of rebate is 100% of income tax calculated before education cess or 12,500 whichever is less.

Surcharge to be added

Income (Rs.) Old rate of Income Tax, Proposed rate of Income Tax,

Sur-charge & Cess for Sur-charge & Cess for

FY 2018-19 (for 30% slab) FY 2019-20 (for 30% slab)

Up to 50 Lakhs Nil Nil

50 Lakhs -1 Crore 34.32% 34.32%

1 Crore- 2 Crore 35.88% 35.88%

2 Crore – 5 Crore 35.88% 39.00%

Above 5 Crore 35.88% 42.744%


ii. Corporate tax rates

Income (Rs.) Proposed rate of Corporate Tax for FY 2019-20

Domestic Company

having total income less than 1 Crore 30%*

Domestic Company

having total income more than

1 Crore but less than 10 Crore 30%* plus surcharge of 7%

Domestic Company

having total income more than 10 Crore 30%* plus surcharge of 12%

Other Company having

total income less than 1 Crore 40%

Other Company having

total income more than

1 Crore but less than 10 Crore 40% plus surcharge 2%

Other Company having

total income more than 10 Crore 40% plus surcharge 5%

Note:

a. Cess of 4% shall be levied over and above the above taxes.

b. *Reduced rate of 25% shall be applicable where total turnover / receipts in the last P.Y. does not exceed Rs 400 Cr.


iii. Firms

Income (Rs.) Proposed rate of Income Tax for FY 2019-20

Having total income up to 1 Crore 30%

Having total income more than 1 Crore 30% plus surcharge of 12%

Note:

a. Cess of 4% shall be levied over and above the above taxes.


iv. Cooperative Societies

Income (Rs.) Proposed rate of Income Tax for FY 2019-20

Having total income up to 10,000 10%

Having total income of more than 10,000 Rs. 1,000 plus 20% of total income in excess of Rs. 10,000 to Rs. 20,000

Having total income of more than 20,000 Rs. 3,000 plus 30% of total income in excess of Rs. 20,000

Note:

a. Cess of 4% shall be levied over and above the above taxes.

b. Surcharge @ 12% of income tax if net income exceeds Rs. 1 Crore is applicable.

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