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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