Income tax Slab for salaried employees FY 2018-19
New Income Tax Slab Rates will take effect from 1st April 2018.
Finance minister arun jaitley has proposed major changes in Budget 2018-19.
Although Deductions under section 80C remained unchanged at rs 150,000.
Major Changes in BUDGET 2018
- Standard deduction of rs 40,000 for all employees and pensioners on taxable Income.
- Education cess increased from 3% to 4%.it will be called health education cess.
- New section 80TTB is proposed for senior citizens .Under this section senior citizen will get rs 50,000 Rebate on FD,RD ,SAVING BANK ACCOUNT AND POSTAL SAVING ACCOUNT.
HOW TO CALCULATE Income tax for salaried employee age <60 years
Suppose your gross salary is rs 6 lakhs.And your max saving is 150,000 under section 80C.
Hence your taxable income becomes 6,00000-150,000=450,000.
Now as taxable income after deduction is 450,000
Standard deduction applicable is 40,000.
So deduct it from 450,000.
So taxable income becomes 410,000.
So there will be no debate under section 87A.
Hence 5% of 160000=8000.Now Health education cess 4% of 8,000 is 320.
So tax becomes 8320.
Also see the following table:
New Slab Rate 2018-19
10’0000 & above 30%
Note: There will be Rebate u/s 87a only if income after deduction 80C is <=3.5 lakhs.
Also Note surcharge 10% on taxable income will be applicabe if taxable income exceeds rs 50 lakhs.
Further 15% surcharge will be levied if taxable income exceeds 1 crore.
Health and education cess is 4% from Budget 2018.
Conclusion:Finally we can say that in new tax Slab 2018-19 there is some benefit of rs 40,000 in the form of standard deduction. And Education cess increased from 3% to 4%.