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Modified on : 7 August, 2018

Income Tax Slabs & Rates for Non-resident : AY 2019-20

Income Tax in India provide different tax rates for various categories of tax payers. View more ...

The Income Tax rates for Individuals, HUFs, AOP, BOI and Co-operatives are progressive in nature, where a lower tax rate is imposed on low-income earners compared to those with higher income, making it based on the taxpayer's ability to pay. That means it takes a larger percentage from high-income earners than it does from low-income earners. Individuals, HUFs, AOP, BOI and Co-operatives are taxed as per different slab rates ( varies from Nil to 30% ). However, Firms and Companies are taxed on fixed rate basis, except for certain specified incomes.

When income increases a specified limit(s), Surcharge on Income Tax is charged at specified Surcharge rate on Income Tax. The specified limit(s) for charging Surcharge and Surcharge rates are different for different categories of tax payers.

Health & Education Cess is charged @ 4% of (Income Tax + Surcharge).

Assessment Year
Tax payer Category

Non-resident : Individual / HUF / AOP / BOI

Standard Deduction of ₹ 40,000/- available under Section 16(ia) w.e.f. 1st April 2018 in lieu of Transport Allowance and Reimbursement of Miscellaneous Medical Expenditure to Salaried Tax Payers.

Taxable Income SlabIncome Tax
Upto ₹ 2,50,000/-.NIL
₹ 2,50,000/- to ₹ 5,00,000/-.5% of (taxable income - 2,50,000).
₹ 5,00,000/- to ₹ 10,00,000/-.₹ 12,500/- + 20% of (taxable income - 5,00,000).
Above ₹ 10,00,000/-.₹ 112,500/- + 30% (taxable income - 10,00,000)
Surcharge ( subject to Marginal Relief )10% of the Income Tax, in case taxable income is above ₹ 50 lacs.
15% of the Income Tax, where taxable income is more than ₹ 1 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Non-resident : Co-operative Society

Taxable Income SlabIncome Tax
Upto ₹ 10,000/-.10% of the income.
₹ 10,000/- to ₹ 20,000/-.₹ 1,000/- + 20% of (taxable income - 10,000)
Above ₹ 20,000/-₹ 3,000/- + 30% of (taxable income - 20,000)
Surcharge ( subject to Marginal Relief )12% of the Income Tax, in case taxable income is above ₹ 1 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Non-resident : Firm

Income Tax30% of taxable income.
Surcharge ( subject to Marginal Relief )12% of the Income Tax, in case taxable income is above ₹ 1 crore.
Health & Education Cess4% of (Income Tax + Surcharge).

Non-resident : Corporate (Foreign Company)

Nature of IncomeTax Rate
Royalty received from Government ... More
or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government
50%
Any other income40%
Surcharge ( subject to Marginal Relief )2% ofincome tax, in case taxable income is above ₹ 1 crore.
5% of income tax, in case taxable income is above ₹ 10 crores.
Health & Education Cess4% of (Income Tax + Surcharge).

Marginal Relief in Surcharge

In case taxable income exceeds ₹ 50 lacs / ₹ 1 crore Surcharge is payable on income tax at applicable rates. If increase in 'Income Tax + Surcharge' is more than the increase in income over ₹ 50 lacs / ₹ 1 crore, the 'Surcharge' is reduced by such amount so that the 'Income Tax + Surcharge' become equal to increase in 'Total Taxable Income' over Rs. 50 lacs / 1 Crore respectively. The amount so reduced from 'Surchage' is 'Marginal Relief on Surcharge'. View examples.

Example 1

In case of an individual resident (< 60 years) / HUF / NRI having taxable income of ₹ 50,01,000/-

1Income Tax on income of ₹ 50,01,000/-13,12,800
2Surcharge on income of ₹ 50,01,000/-1,31,280
3Income Tax + Surcharge on income of ₹ 50,01,000/- (1 + 2)14,44,080
4Income Tax on income of ₹ 50 lacs13,12,500
5Surcharge on income of ₹ 50 lacs0
6Income Tax + Surcharge on income of ₹ 50 lacs (4 + 5) 13,12,500
7Increase in Income over ₹ 50 lacs1000
8Income Tax + Surcharge on income of ₹ 50 lacs + Increase in Income over ₹ 50 lacs13,13,500
9Income Tax and Surcharge payable on income of ₹ 50,01,000/- (Lower of 3 and 8 )13,13,500
10Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]1,30,580

Example 2

In case of an individual resident (< 60 years) / HUF / NRI having taxable income of ₹ 60 lacs

1Income Tax on income of of ₹ 60 lacs16,12,500
2Surcharge on income of of ₹ 60 lacs1,61,250
3Income Tax + Surcharge on income of of ₹ 60 lacs (1 + 1)17,73,750
4Income Tax on income of ₹ 50 lacs13,12,500
5Surcharge on income of ₹ 50 lacs0
6Income Tax + Surcharge on income of ₹ 50 lacs (4 + 5) 13,12,500
7Increase in Income over ₹ 50 lacs10,00,000
8Income Tax + Surcharge on income of ₹ 50 lacs + Increase in Income over ₹ 50 lacs23,13,500
9Income Tax and Surcharge payable on income of of ₹ 60 lacs ( Lower of 3 and 8 )17,73,750
10Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]0

Example 3

In case of an individual resident (< 60 years) / HUF / NRI having taxable income of ₹ 1,00,01,000/-

1Income Tax on income of ₹ 1,00,01,000/-28,12,800
2Surcharge on income of ₹ 1,00,01,000/-4,21,920
3Income Tax + Surcharge on income of ₹ 1,00,01,000/- (1 + 2)32,34,720
4Income Tax on income of ₹ 1 crore28,12,500
5Surcharge on income of ₹ 1 crore2,81,500
6Income Tax + Surcharge on income of ₹ 1 crore (4 + 5) 30,93,750
7Increase in Income over ₹ 1 crore1000
8Income Tax + Surcharge on income of ₹ 1 crore + Increase in Income over ₹ 1 crore30,94,750
9Income Tax and Surcharge payable on income of ₹ 1,00,01,000/- (Lower of 3 and 8 )30,94,750
10Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]1,39,970