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Individual Income Tax Rates 2017 Solution Manual

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Income tax department charges Income tax from various entities at different rates based on their nature and amount of income. This guide by H&R Block India will give you the Income tax slab rates prescribed by the government for three financial years i.e.

FY 16-17, FY 17-18 and FY 18-19. Based on the applicable slab, you can calculate your Income tax liability. The Income Tax slab rates are different for different categories of taxpayers. We can divide Income Tax slab rates for the following categories. What is Surcharge?

A surcharge is an additional charge or tax. In the context of Income Tax, a Surcharge is an additional tax calculated on the amount of Income Tax and is payable in addition to the Income tax. How is Surcharge calculated? To understand the calculation of surcharge, let’s look at an example. E.g., a person has Rs 5,00,000 payable as Income Tax (I-T), and a surcharge @ 10% is applicable on this amount.

The surcharge on tax payable (5,00,000 x 10%) will be Rs 50,000. Hence, the total amount payable (I-T + Surcharge) will be Rs 5,50,000. What is the Rate of Surcharge? The rate of Surcharge for Resident Individuals for AY 2018-19 and AY 2019-20, • The rate of surcharge is 10% – if income lies between Rs 50 lakh & Rs 1 crore.

Use this guide to help you complete your Income tax return IR3 for the 2017 year. Income tax rates. Individual income tax return guide 2017 IR3G. Selected Kansas Tax Rates with Statutory Citation; Selected Kansas Tax Rates with Statutory Citation. Individual Income Tax Tax Rates, Resident, married, joint. Tax year 2019. Tax year 2017 taxable income not over $15,000: 2.9% (79-32,110).

• However, if your income >Rs 50 lakh, I-T + Surcharge cannot exceed I-T payable on Rs 50 lakh by more than the amount of income that exceeds Rs 50 lakh. This upper limit on tax is called marginal relief. • The rate of Surcharge is 15% – if income >Rs 1 crore. • However, if your income >Rs 1 crore, I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore. This upper limit on tax is called marginal relief.

The rate of Surcharge for Partnership Firm (including LLP) and Local Authority for AY 2018-19 and AY 2019-20 • The rate of surcharge is 12% – if income >Rs 1 crore. • However, if your income >Rs 1 crore, then I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore. This upper limit on tax is called marginal relief.

The rate of Surcharge for Domestic Company for AY 2018-19 and AY 2019-20, • The rate of surcharge is 7% – if income lies between Rs 1 crore & Rs 10 crore. • However, if your income >Rs 1 crore, I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore. This upper limit on tax is called marginal relief. • Rate of Surcharge is 12% – if income >Rs 10 crore. • However, if your income >Rs 10 crore, I-T + Surcharge cannot exceed I-T payable on Rs 10 crore by more than the amount of income that exceeds Rs 10 crore.

This upper limit on tax is called marginal relief. The rate of Surcharge for Foreign Company for AY 2018-19 and AY 2019-20, • The rate of Surcharge is 2% – if income lies between Rs 1 crore & Rs 10 crore. • However, if your income >Rs 1 crore, I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore.

This upper limit on tax is called marginal relief. • Rate of Surcharge is 5% – if income >Rs 10 crore. • However, if your income >Rs 10 crore, I-T + Surcharge cannot exceed I-T payable on Rs 10 crore by more than the amount of income that exceeds Rs 10 crore. This upper limit on tax is called marginal relief. What are Education Cess, and Secondary and Higher Education Cess? In the context of Income Tax, these two are additional taxes which are calculated on the applicable I-T plus surcharge.

They are collected and used by the government for a specific purpose. They are applicable in AY 2018-19 and replaced by health and education cess for AY 2019-20. How are Education Cess, and Secondary and Higher Education Cess calculated?

Let’s continue the previous example to understand the calculation of these two taxes. In the previous example, the amount we got as Income Tax + Surcharge was Rs 5,50,000. Let’s assume that the rates of Education Cess (EC) and Secondary and Higher Education Cess (SHEC) are 2% and 1% respectively. Both will be calculated over Rs 5,50,000. Hence, the EC will be (5,50,000 x 2%) Rs 11,000 and SHEC will be (5,50,000 x 1%) Rs 5,500.

What are the Rates of EC and SHEC? • For AY 2018-19, rates of EC and SHEC are 2% and 1% respectively. • For AY 2019-20, rates of EC and SHEC have been replaced by Health and Education Cess of 4%. What is Health and Education Cess? In the context of Income Tax, Health and Education Cess (HEC) is additional taxes which are calculated on the applicable I-T plus surcharge. It is collected and used by the government for a specific purpose.

HEC has replaced EC and SHEC for AY 2019-20. How is Health and Education Cess calculated? The HEC is calculated in the similar way as EC and SHEC are calculated. What is the rate of HEC? For AY 2019-20, the rate of HEC is 4%. How to Calculate Income Tax from Income Tax Slab Rates?

Suppose Mr Nikhil has an annual income of Rs. 10 lakh in the Financial Year 2016-17. How will we calculate his tax liability for Assessment Year 2017-18? Income (in rupees) Tax Rate (in%age) Calculation Zero – 2,50,000 Nil 2,50,000 x 0 = 0 2,50,000 – 5,00,000 10% 2,50,000 x 10% = 25,000 5,00,000 – 10,00,000 20% 5,00,000 x 20% = 1,00,000 Above 10,00,000 30% 0 x 30% = 0 Total tax = (0 + 25,000 + 1,00,000 + 0) x 1.03 = Rs 1,28,750 So, his tax liability for Financial Year 2016-17 comes out to be Rs 1,28,750. Now suppose that he earns the same amount of income in the Financial Year 2017-18. How will we calculate his tax liability for Assessment Year 2018-19?

Income (in rupees) Tax Rate (in%age) Calculation Zero – 2,50,000 Nil 2,50,000 x 0 = 0 2,50,000 – 5,00,000 5% 2,50,000 x 5% = 12,500 5,00,000 – 10,00,000 20% 5,00,000 x 20% = 1,00,000 Above 10,00,000 30% 0 x 30% = 0 Total tax = (0 + 12,500 + 1,00,000 + 0) x 1.03 = Rs 1,15,875 So, his tax liability for Financial Year 2017-18 comes out to be Rs 1,15,875. Now suppose that he earns the same amount of income in the Financial Year 2018-19. How will we calculate his tax liability for Assessment Year 2019-20?

Income (in rupees) Tax Rate (in%age) Calculation Zero – 2,50,000 Nil 2,50,000 x 0 = 0 2,50,000 – 5,00,000 5% 2,50,000 x 5% = 12,500 5,00,000 – 10,00,000 20% 5,00,000 x 20% = 1,00,000 Above 10,00,000 30% 0 x 30% = 0 Total tax = (0 + 12,500 + 1,00,000 + 0) x 1.04 = Rs 1,17,000 So, his tax liability for Financial Year 2017-18 comes out to be Rs 1,17,000. His tax liability has effectively increased in FY 2018-19 for the same amount of income earned during FY 2017-18 due to increase in cess. Note: This tax calculation is a basic example for your understanding which is applicable only for individuals (up to 60 years of age) without accounting for tax deductions and exemptions.

Individual income tax rates Residents These rates apply to individuals who are for tax purposes. 2015 Volkswagen Touareg Warranty Manual. Resident tax rates 2018–19 Resident tax rates 2018–19 Taxable income Tax on this income 0 – $18,200 Nil $18,201 – $37,000 19c for each $1 over $18,200 $37,001 – $90,000 $3,572 plus 32.5c for each $1 over $37,000 $90,001 – $180,000 $20,797 plus 37c for each $1 over $90,000 $180,001 and over $54,097 plus 45c for each $1 over $180,000 The above rates do not include the Medicare levy of 2%. The above rates include changes announced in the 2018-19 Federal Budget. Resident tax rates 2017–18 Resident tax rates 2017–18 Taxable income Tax on this income 0 – $18,200 Nil $18,201 – $37,000 19c for each $1 over $18,200 $37,001 – $87,000 $3,572 plus 32.5c for each $1 over $37,000 $87,001 – $180,000 $19,822 plus 37c for each $1 over $87,000 $180,001 and over $54,232 plus 45c for each $1 over $180,000 The above rates do not include the Medicare levy of 2%.

The temporary budget repair levy ceased applying from 1 July 2017. See also: • • Foreign residents These rates apply to individuals who are foreign residents for tax purposes. Foreign resident tax rates 2018–19 Foreign resident tax rates 2018–19 Taxable income Tax on this income 0 – $90,000 32.5c for each $1 $90,001 – $180,000 $29,250 plus 37c for each $1 over $90,000 $180,001 and over $62,550 plus 45c for each $1 over $180,000 The above rates include changes implementing changes announced in the 2018-19 Federal Budget. Foreign resident tax rates 2017–18 Foreign resident tax rates 2017–18 Taxable income Tax on this income 0 – $87,000 32.5c for each $1 $87,001 – $180,000 $28,275 plus 37c for each $1 over $87,000 $180,001 and over $62,685 plus 45c for each $1 over $180,000 Foreign residents are not required to pay the Medicare levy. The temporary budget repair levy ceased applying from 1 July 2017. See also: • Children If you are under the age of 18, and receive unearned income (for example, investment income), special rates apply.

See also: • Working holiday makers These rates apply to income regardless of residency for tax purposes. You are a working holiday maker if you have a visa subclass: • 417 (Working Holiday) • 462 (Work and Holiday). Working holiday maker tax rates 2018–19 Working holiday maker tax rates 2018–19 Taxable income Tax on this income $0 – $37,000 15c for each $1 $37,001 – $90,000 $5,550 plus 32.5c for each $1 over $37,000 $90,001 – $180,000 $22,775 plus 37c for each $1 over $90,000 $180,001 and over $56,075 plus 45c for each $1 over $180,000 The above rates include changes announced in the 2018-19 Federal Budget. Working holiday maker tax rates 2017–18 Working holiday maker tax rates 2017–18 Taxable income Tax on this income $0 – $37,000 15c for each $1 $37,001 – $87,000 $5,550 plus 32.5c for each $1 over $37,000 $87,001 – $180,000 $21,800 plus 37c for each $1 over $87,000 $180,001 and over $56,210 plus 45c for each $1 over $180,000 The temporary budget repair levy ceased applying from 1 July 2017.