Tax rates for individuals tax year 2019

Tax rates for individuals tax year 2019

Paragraph (1), Division I, Part I of the First Schedule

Tax rates for individuals tax year 2019: Prior to the Finance Act, 2018 the minimum threshold for taxable income was Rs.400,000/- for individuals and tax rates for non-salaried and salaried individuals were separately provided in paragraph(s) (1) and (1A) respectively in Division I, Part-I of the First Schedule.

Through the Finance Act, 2018, tax rates of both salaried as well as non-salaried individuals have been clubbed and revised by providing rates for individuals (salaried as well as non-salaried) in paragraph (1) of Division I as under:-

Sr. # Taxable Income Rate of Tax
1 Where the taxable income does not exceed Rs.400,000/- 0%
2 Where the taxable income exceedsRs.400,000/- but does not exceed Rs.800,000/- Rs.1,000/-
3 Where the taxable income exceeds Rs.800,000/- but does not exceed Rs.1,200,000/- Rs.2,000/-
4 Where the taxable income exceeds Rs.1,200,000/- but does not exceed Rs.2,400,000/-


5% of the amount exceeding Rs.1,200,000/-
5 Where the taxable income exceeds Rs.2,400,000/- but does not exceed Rs.4,800,000/- Rs.60,000/-+ 10% of the amount                exceeding Rs.2,400,000/-
6 Where the taxable income exceeds Rs.4,800,000/- Rs.300,000/-+ 15% of the amount exceeding Rs.4,800,000/-

After this table a proviso has been added which states that where the taxable income exceeds Rs.800,000/- but the tax payable is less than Rs.2000, a minimum tax of Rs.2000/- would be payable. Hence, Rs.2000/- would be payable on income from Rs.800,000/- to Rs.1,240,000/-.

The proviso has been added, because the tax at the rate of 5% on income exceeding Rs.1,200,000/- up to Rs.1,240,000/- would have been less than Rs.2000/-. 

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