This post summarizes the
key tax rates for business individuals, salaried individuals, companies, and
various withholding provisions, based on the Finance Supplementary (Amendment)
Act, 2018 and the Finance Supplementary (Second Amendment) Act, 2019.
💼 Tax
Rates for Business Individuals
Here
are the progressive tax rates applicable to Business Individuals:
Income
Bracket
Tax
Rate/Amount
Upto Rs
400,000
0%
Rs
400,001 To 800,000
Rs
1,000
Rs
800,001 To 1,200,000
Rs
2,000
Rs
1,200,001 To 2,400,000
5%
of the exceeding Rs 1,200,000
Rs
2,400,001 To 3,000,000
Rs
60,000 + 15% of the amount exceeding Rs 2,400,000
Rs
3,000,001 To 4,000,000
Rs
150,000 + 20% of the amount exceeding Rs 3,000,000
Rs
4,000,001 To 5,000,000
Rs
350,000 + 25% of the amount exceeding Rs 4,000,000
Exceeding
Rs 5,000,000
Rs
600,000 + 29% of the amount exceeding Rs 5,000,000
🧑💻 Tax Rates for Salaried
Individuals
The
following rates apply to Salaried Individuals (where salary
income exceeds 50% of total taxable income):
Income
Bracket
Tax
Rate/Amount
Upto Rs
400,000
0%
Rs
400,001 To 800,000
Rs
1,000
Rs
800,001 To 1,200,000
Rs
2,000
Rs
1,200,001 To 2,500,000
5%
of the exceeding Rs 1,200,000
Rs
2,500,001 To 4,000,000
Rs
65,000 + 15% of the amount exceeding Rs 2,500,000
Rs
4,000,001 To 8,000,000
Rs
250,000 + 20% of the amount exceeding Rs 4,000,000
Exceeding
Rs 8,000,000
Rs
1,090,000 + 25% of the amount exceeding Rs 8,000,000
Note: A 40% reduction in
tax is available for full-time teachers.
🏦 Corporate and Association Tax Rates
Company
Tax Rates:
Company
Type
Tax Rate
Banking
Company
35%
Public
& Private Company
29%
Small
Company
24%
Tax Rates for Associations of Persons (AOPs) are
also defined.
💰 Key Withholding Tax (WHT) Provisions
Various
payments are subject to withholding tax. Here are some common examples under the Final
Discharge of Tax section:
Nature
of Payment
Section
Filer
Rate
Non-Filer
Rate
Imports
(Other than specified)
148
6.0%
9.0%
Dividend
150
7.5%
to 25.0%
25.0%
Profit
on debt upto Rs 500,000 (Other than Companies)
151
10.0%
10.0%
Sale of
Goods (Companies)
153(1)(a)
4.0%
8.0%
Sale of
Goods (Other than Companies)
153(1)(a)
4.5%
9.0%
Contracts
(Other than Companies)
153(1)(c)
7.5%
15.0%
Exports
154
1.0%
1.0%
Prize
Bond Winnings
156(1)
15.0%
25.0%
🏠 Tax on Income from Property (U/S 155 for IND & AOP)
The
deduction on income from property for Individuals and AOPs is as follows:
Gross
Rental Income
Tax
Rate/Amount
Upto Rs
200,000
Nil
Rs
200,001 To 600,000
5.0% of the gross
amount exceeding Rs. 200,000
Rs
600,001 To 1,000,000
Rs. 20,000 + 10.0%
of the gross amount exceeding Rs. 600,000
Exceeding
Rs 2,000,000
Rs. 210,000 + 20.0%
of the gross amount exceeding Rs. 2,000,000
The rate of tax to be deducted on Rental
Income is 15% of the gross amount for filers and
17.5% for non-filers.
📈 Capital Gains on Immovable Property
The
Capital Gains Tax on the disposal of immovable property is dependent on the
holding period (if acquired on or after 01-07-2016):
Holding
Period
Tax Rate
Upto one
year
10.0%
Upto two
years
7.5%
Upto
three years
5.0%
More
than three years
0.0%
This
is just a summary. For detailed compliance, consult the full tax regulations
and a tax professional.
