One fine body…
Finance minister Arun Jaitley made some changes in the current tax slab rates in India For FY 2018-19.
Here are the key changes in Budget 2018:
suppose your gross salary is 6 lakhs.Deduct rs 40,000 as standard deduction from 6 lakhs.
Also suppose your saving under section 80C is rs 150,000.
Hence taxable amount becomes rs 410,000.
Now you know upto 250,000 there will no tax.
So subtract it from rs 410,000,it is 160,000.
so 5% tax rate is applicable here.
5% of 160,000 is 8,000.
Health education cess 4% of 8,000 is rs 320 .
So your final tax is rs 8320.
Note: Here no tax rebate is applicable as taxable income in this example is 410,000.Which is more than 3.5 lakhs.