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New Income Tax Slab Rates for Financial Year 2018-19 (AY 2019-20)

Income tax slab for individual tax payers & HUF (less than 60 years old) (both men &
women)

Income Tax Slab Tax Rate

Income up to Rs.2,50,000 No Tax


Income from Rs. 2,50,000 – Rs. 3,00,000 5%
Income from Rs. 3,00,000 – Rs. 5,00,000 5%
Income from Rs. 5,00,000 – Rs. 10,00,000 20%
Income more than Rs. 10,00,000 30%

Income tax slab for individual tax payers & HUF (60 years old or more but less than 80 years
old) (both men & women)

Income Tax Slab Tax Rate

Income up to Rs.2,50,000 No Tax


Income from Rs. 2,50,000 – Rs. 3,00,000 No Tax
Income from Rs. 3,00,000 – Rs. 5,00,000 5%
Income from Rs. 5,00,000 – Rs. 10,00,000 20%
Income more than Rs. 10,00,000 30%

Income tax slab for super senior citizens (80 years old or more) (both men & women)

Income Tax Slab Tax Rate

Income up to Rs.2,50,000 No Tax


Income from Rs. 2,50,000 – Rs. 3,00,000 No Tax
Income from Rs. 3,00,000 – Rs. 5,00,000 No Tax
Income from Rs. 5,00,000 – Rs. 10,00,000 20%
Income more than Rs. 10,00,000 30%
2. Capital Gain Tax:

This is a tax that is payable whenever you receive a sizable amount of money. It could be from
an investment or from the sale of a property. It is generally of two types, short term capital
gains from investments held for less than 3 years and long term capital gains from investments
held for longer than 36 months. The tax applicable for each is also different since the tax on
short term gains is measured on the basis of income bracket that you fall in and the tax on long
term gains is 20 percent. The interesting thing about this tax is that the gain does not always
have to be in the terms of money. It may also be an exchange in kind in which case the value
of the exchange will be considered for taxation.

3. Securities Transaction Tax:

It’s no secret that if you know how to trade properly on the stock market, and trade in securities,
you stand to make a substantial amount of money. This is also an source of income but it has
its own tax which is called as Securities Transaction Tax . The tax is levied by adding the tax
to the price of the share. It means that every time you purchase or sell shares, you pay this tax.
All securities traded on the Indian stock exchange have this tax attached to them.

4. Corporate Tax:

This tax is the income tax that is paid by firms from the revenue they earn. Corporate tax also
comes with a slab of its own that decides the amount of tax the company has to pay. For
example a domestic firm, which has a revenue of less than Rs.1 crore per annum, would not
have to pay this tax but the company which has a revenue of more than Rs.1 crore per annum
will have to pay this tax. It is also known to as a surcharge and is different for different
revenue brackets. It is not same for international companies where the corporate tax may be
41.2 percent if the organization has a revenue of less than Rs.10 million and so on.

There are four different types of corporate tax. They are:

 Minimum Alternative Tax


 Fringe Benefit Tax
 Dividend Distribution Tax
 Banking Cash Transaction Tax
Indirect Tax

Indirect taxes are taxes which are indirectly levied on the public through goods and services.
The sellers of the goods and services collect the tax which is then collected by the
government bodies.

1. Value Added Tax (VAT) - A sales tax levied on goods sold in the state. The rate depends
on the government.

2. Octroi Tax – Levied on goods which move from one state to another. The rates depend on
the state governments.

3. Service Tax – The Government levies the tax on service providers.

4. Customs Duty – It is a tax levied on anything which is imported into India from a foreign
nation.

Examples of Other taxes:

 Professional Tax:
Professional Tax, or employment tax, is another form of tax levied only by state
governments in India. According to professional tax norms, persons who earn income or
carrying out a profession such as a doctor, lawyer, chartered accountant, or company
secretary etc. have to pay this tax. However, not all states levy professional tax and the
rate is different across all the states that levy the tax.

 Property Tax:
Also known as Property Tax or Real Estate Tax, this is one of the taxes levied by local
municipal bodies of every city. These taxes are levied in order to provide and maintain
the for basic civic services. All the owners of residential or commercial properties are
subject to the Municipal Tax.

 Entertainment Tax:
This tax is yet another type of tax generally seen in India. It is imposed by the
government on feature films, television series, exhibitions, amusement, and recreational
parlours. This type of tax is collected by taking into account a business entity’s gross
collection collected from earnings which are based on commercial shows, film festival
earnings, and audience participation.

 Stamp Duty:
Stamp duty, registration fees, and transfer taxes are collect as a supplement of property
tax. For instance, when a person buys a property, he also have to pay for the cost of
stamps (stamp duty), registration fees (fees charged by local registrar to legalize a
property transaction), and transfer tax (tax charged for transferring the ownership of a
commodity).

 Education Cess/Surcharge:
Education cess is a type of tax in India generally introduced to cover the cost of
government-sponsored educational programs. Education Cess tax is collected
independently from other taxes and is applicable to all Indian citizens, corporations, and
other people living in India. The effective rate of education cess currently stands at 2
percent of an individual’s income.