1

Latest Income Tax Rates For AY 2019-20(FY 2018-19)

Income Tax Rates For Ay 2019-20 And Fy 2018-19 have been proposed by finance minister of India in Budget 2018.

We will discuss very current tax slab rates for fy 2018-19 in this in-depth article  with table examples.So you must read it.

If you are an individual and have gross income for a financial year more than 2.5 lakh,then you are obliged to calculate your tax liability and pay the same if applicable.

Firstly we will discuss key points related to this article:

what is a financial year and Assessment Year

Financial year starts from first april (e.g 2018)to 31st march 2019.And you have to calculate your tax within this period.

Assessment year is the period of a next financial year during which return of a previous fy of an assessee is assessed by IT department.

Example: suppose we are calculating income tax for fy 2018-19,then your return will be processed by IT DEPARTMENT next financial year starting from 1st april 2019 to 31st march 2020.

Standard deduction: From fy 2018-19,standard deduction of rs 40,000 on gross dalary will be applicable.

It is in lieu of travelling alowance and medical reimbursement of rs 35200.

Taxable Income:

Your gross salary-standard deduction-saving under section 80C.

Suppose your gross salary is 5 lakhs and savings under section 80C are 1.5 lakhs,then TAXABLE INCOME will be 500000-40,000(standard deduction) -150,000=310,000.

Budget 2018 major changes for fy 2018-19:

  • Standard deduction of rs 40,000 applicable for all tax payers.
  • Health education cess applicable is @4%.
  • Under section 80D,upto rs 50,000 tax rebate for senior citizens on premium amount paid for health insurance policy.
  • Expenditure upto rs 1 lakhs incurred on specified diseases like cancer for all senior citizens of age 60 years and above.
  • No TDS is deductible upto rs 50,000 by banks on saving bank interest,FD interest,RD interest or postal saving account interest  u/s  80TTB.

Income Tax Calculation for fy 2018-19 (age <60 years)

Taxable Income                        Tax

0-250,000                                   o%

250,001-500000                          5%

500001-10,00000                        20%

Above 10,00000                         30%

Note: 1.  If your taxable income is 3.5 lakh or less,rs 2500 rebate will be applicable under section 87A. 

2. If taxable income is above 50 lakh and less than or equal to 1 crore,you will have to pay 10% surcharge.

3.  In case taxable income is above 1 crore,15%surcharge will be applicable.

Tax Calculation:If Salary is 5 lakhs and age <60 yrs

Your salary=500000

Standard deduction applicable=40,000

Assume(your savings u/s 80C =150,000

So Taxable income=310,000

Tax rate applicable=5%

As 0-250,000=no tax

Hence 310000-250000=60000

So 5% of 60,000=3000

Health education cess applicable=4%

So 4% of 3000=120

Hence tax payable=3000+120=3120

If your Gross Income IS 6 Lakhs:

Your salary=600000

Standard deduction applicable=40,000

Suppose (your savings u/s 80C =150,000

So Taxable income=410,000

Tax rate applicable=5%

As 0-250,000=no tax

so 410000-250000=160000

And 5% of 160,000=8000

Health education cess applicable=4%

So 4% of 8000=320

Hence tax payable=8000+320=8320

If Taxable Income Is 10 Lakhs

salary=1000000

Standard deduction applicable=40,000

Assume(your savings u/s 80C =150,000

So Taxable income=810,000

As 0-250,000=no tax

Hence 810000-250000=560000

Now upto 500000 tax rate is 5%

And on rs 60,000, 20% tax rate is applicable here .

Hence 5% of 500000=25,000

And 20% of 60,000=12,000

Hence total tax becomes 25,000+12000=37,000

Health education cess applicable=4%

So 4% of 37,000=1480

Hence tax payable=37,000+1480=38480

Tax Calculation For Senior citizens Age above 60 yrs & less than or =80yrs :If Pension is 6 lakhs 

Taxable Income                        Tax

0-300000                                   o%

300001-500000                          5%

500001-10,00000                        20%

Above 10,00000                         30%

Note: 1.  If your taxable income is 3.5 lakh or less,rs 2500 rebate will be applicable under section 87A. 

2. If taxable income is above 50 lakh and less than or equal to 1 crore,you will have to pay 10% surcharge.

3.  In case taxable income is above 1 crore,15%surcharge will be applicable.

Suppose your:

Pension=600000

Standard deduction applicable=40,000

Assume(your savings u/s 80C =150,000

So Taxable income=410,000

As 0-300,000=no tax

Hence 410000-300000=110,000

Now on rs 110,000, 5% tax rate is applicable here .

Hence 5% of 110,000=5500

Health education cess applicable=4%

So 4% of 5500=220

Hence tax payable=5500+220=5220

Income Tax Rates as compared to salaried employees,clearly decrese in this case.

Tax Calculation For Super Senior citizens Age above 80yrs :If Pension is 7 lakhs 

Taxable Income                      Tax

0-500000                                      o%

500001-1000000                           20%

Above 10,00000                         30%

Note: 1.  In case of super senior citizens there will be no rebate under section 87A. 

2. If taxable income is above 50 lakh and less than or equal to 1 crore,you will have to pay 10% surcharge.

3.  In case taxable income is above 1 crore,15%surcharge will be applicable.

Suppose your:

Pension=700000

Standard deduction applicable=40,000

Assume(your savings u/s 80C =150,000

So Taxable income=510,000

As 0-500000=no tax

Hence 510,000-500000=10,000

Now on rs 10,000, 20% tax rate is applicable here .

Hence 20% of 10,000=2000

Health education cess applicable=4%

So 4% of 2000=80 rs

Finally Tax payable =2080 rs.

Income Tax Rates definitely decrese in this case.

Conclusion:

From this above article on Latest tax slab rates in India for fy 2018-19,it is clear that there is not much benefit for salary class whose salary is more than 5 lakhs.

But senior citizens would definitely get benefit from new tax slab for ay 2019-20.

All in all Latest income tax rates for 2018 should have been more in favour of salaried employees.

is a professional blogger,teacher and income tax expert

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

Click Here to Leave a Comment Below 1 comments
James P George - June 15, 2018

Please upload Tax calculator for Income tax payable for SENIOR CITIZEN ABOVE 60 YEARS to 80 years for FY 2017_18 (AY 2018_19
Yours faithfully
James P George

Reply

Leave a Reply: