Income Tax Slab for Resident individual below the age of 60 years FY 2018-19
| Net income range | Income-tax rates | Health and Education Cess |
|---|---|---|
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% of total income minus Rs. 2,50,000 [*] | 4% of income tax |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% of total income minus Rs. 5,00,000 | 4% of income tax |
| Above Rs. 10,00,000 | 30% of total income minus Rs. 10,00,000 | 4% of income tax |
[*] A resident individual (whose net income does not exceed Rs. 3,50,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,500, whichever is less.
Surcharge: Surcharge is levied @ 10% on the amount of income-tax if net income exceeds Rs 50 Lakh but doesn’t exceed Rs. 1 crore and @ 15% on the amount of income tax if net income exceeds Rs. 1 crore. In a case where surcharge is levied, health and education cess of 4% will be levied on the amount of income tax plus surcharge.
However, marginal relief is available from surcharge in such a manner that in the case where net income exceeds Rs. 50 lakh but doesn’t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.
Further, in a case where net income exceeds Rs. 1 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.