Direct Tax - Rates of Taxation

Content Writing  On Income Tax Law
Income Tax Act 1961

Income Tax Law
Amended By the Finance Act 2017
( Assessment Year 2018 – 2019 )

A. Individual / Hindu Undivided Family ( HUF ) / Association of Persons ( AOP ) / Body of Individuals ( BOI ) / Artificial Juridical Person

Total Income Upto Rs. 2,50,000 -  Nil
Then , ( Rs. 2,50,001 To Rs. 5,00,000 ) - 5%
Then , ( Rs. 5,00,001 To Rs. 10,00,000 ) - 20%
Then , ( Rs. 10,00,001 To Above ) - 30%

B. For Senior Citizens ( Being Resident Individuals of the age of 60 years or more but less than 80 Years )

Total Income Upto Rs. 3,00,000 -  Nil
Then , ( Rs. 3,00,001 To Rs. 5,00,000 ) - 5%
Then , ( Rs. 5,00,001 To Rs. 10,00,000 ) - 20%
Then , ( Rs. 10,00,001 To Above ) - 30%

Note - As Per Court Decision , 60 Years means

1. Any Person Reached as on 31st March is 60 Years
2. Or  Any Person Reached as on 1st April is 60 Years
Both Cases Consider as 60 years  Called Senior Citizen

C. For Super Senior Citizens ( Being Resident Individuals of the age of 80 years or more )

Total Income Upto Rs. 5,00,000 - Nil
Then , ( Rs. 5,00,001 To Rs. 10,00,000 ) - 20%
Then , ( Rs. 10,00,001 To Above ) - 30%

Note - As Per Court Decision , 80 Years means

1. Any Person reached as on 31st March is 80 Years
2. Or Any Person reached as on 1st April is 80 Years
Both Cases Consider as 80 years Called  Super Senior Citizen

Special Notes ............

( 1 )  Education Cess ( EC )  &  Secondary and Higher  Education Cess ( SHEC )  -

 Education Cess - 2%
Secondary and Higher Education Cess  - 1%

( 2 )  Surcharge ( Means Additional Tax ) 

A. Individual / Hindu Undivided Family ( HUF ) / Association of Persons ( AOP ) / Body of Individuals ( BOI ) / Artificial Juridical Person

Condition I .  If Total Income is Exceed Rs. 50 Lakhs but Less than Equal to Rs. 1 Crore -
 Surcharge goes to 10%
Condition II .  If Total Income is Exceed Rs. 1 Crore -
Surcharge goes to 15 %

( 3 )  Rebate Under Section 87A
Rebate Upto Rs. 2500 For Resident Individuals having Total Income of Upto Rs. 3,50,000

( 4 )  Marginal Relief  - ( Individual / Hindu Undivided Family ( HUF ) / Association of Person ( AOP ) / BOI ( Body of Individuals ) / Artificial Juridical Person

Condition I .  Where Total Income Exceeds Rs. 50 Lakh But Less than Rs. 1 Crore
Marginal Relief is available in case of such person having Total Income Exceed Rs. 50 Lakh that means the Total amount of Income Tax Payable ( Including  Surcharge ) on such Income Should not Exceed the amount of the Income Tax Payable on Rs. 50 Lakh by more than the amount of Income Exceed Rs.50 Lakh .

Condition II . Where Total Income Exceed Rs. 1 Crore
Marginal Relief is available in case of such persons having Total Income Exceeding Rs. 1 Crore that is Total amount of Income Tax Payable  ( Including Surcharge ) Should not Exceed the amount of Income Tax and Surcharge Payable on Total Income of Rs. 1 Crore by more than amount of Income that Exceed 1 Crore .

Content Writer  -  Arindom  Singha  Biswas

Ex - Xaverian  - St. Xavier’s  School  Haldia   &  St. Xavier’s  College  Kolkata  ( Diploma -  DCAFD )

B. Com ( Accountancy  Honours ) From  Vidyasagar  University

Chartered Accountancy Student