Tax rates in India For fy 2018-19

General

Income Tax Slab Rates FY 2018-19


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:



  • Education cess increased fro 3% to 4%.

  • Standard Deduction to be deducted from your GROSS INCOME .

  • Section 80TTB proposed for senior citizens .

  • Up to rs 50,000 rebate can be taken under section 80D.It used to be 50,000 in the previous fy 2017-18 etc.

  • Upto Rs 1 lakh tax benefit for all senior citizens on the expenditure incurred on specified disease as on budget 2018 .

  • Upto rs 50,000 no TDS will be deducted by banks or post office for all senior citizens under section 80TTB.


How to calculate income tax for FY 2018-19


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.

03/05/2018 06:07:44