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Budget 2018: Income Tax Slab for FY 2018-19

By: Makemymoney

Budget 2018 was completely out of one’s expectation as Finance Minister Arun Jaitley did not mention any change in income tax rates. In fact, Budget 2018 Income Tax Slab for FY 2018-19 has proposed to hike CESS from 3% to 4%. Hike in CESS will increase the tax payable by all categories of taxpayers.

There is no major change in income tax slab for FY 2018-19, FM Arun Jaitley has announced a standard deduction of Rs. 40,000. This deduction of Rs. 40,000 in place of exemptions allowed for medical reimbursement and transport allowance. However, the medical reimbursement is of Rs. 15,000 and transport allowance of Rs. 19,200. This change brings tax liability for lowest bracket taxpayer (Rs. 2.5 lakh to Rs. 5 Lakhs) increased by Rs. 125. For middle-income taxpayer (Rs. 5 Lakh to Rs. 10 Lakh) increased by Rs. 1,125 and for highest taxpayer (assuming Rs. 15 Lakh) liability increased by Rs. 2,625.

Here the chart is given below, telling you about how Income tax slab for FY 2018-19 will impact your tax liability in detail.

 

  • If you’re salaried employee below the age of 60 years:-

 

Net Income Range Income Tax Rates & CESS Net Taxable Income PostBudget Tax Liability Increase in Tax due to CESS
Upto to Rs. 2,50,000 Nil 2,50,000         _______     ________
Rs. 2,50,001 to Rs. 5,00,00 5% of total income minus Rs. 2,50,000 + 4% CESS 5,00,000 13,000 125
Rs. 5,00,001 to Rs. 10,00,000 Rs. 12,500 + 20% of Total income minus Rs. 5,00,000 + 4% CESS 10,00,000 1,17,000 1,125
Rs. 10,00,001 and above Rs. 1,12,500 + 30% of total income minus Rs. 10,00,000 + 4% CESS 15,00,000 2,73,000 2,625

 

  • The resident individual who is of age 60 years or above but less than 80 years

 

Net Income Range Income Tax Rates & CESS Net Taxable Income PostBudget Tax Liability Increase in Tax due to CESS
Upto Rs. 3,00,000 Nil 3,00,000         ——–        ———
Rs. 3,00,001 to Rs. Rs. 5,00,000 5% of total income minus Rs. 2,50,000 + 4% CESS 5,00,000 10,400 100
Rs. 5,00,001 to Rs. 10,00,000 Rs. 12,500 + 20% of Total income minus Rs. 5,00,000 + 4% CESS 10,00,000 1,14,400 1,100
Rs. 10,00,001 and above Rs. 1,12,500 + 30% of total income minus Rs. 10,00,000 + 4% CESS  

15,00,000

2,70,400

                             

2,600

 

 

  • The resident individual who is of the age 80 years or above

 

Net Income Range Income Tax Rates & CESS Net Taxable Income Post Budget Tax Liability Increase in Tax due to CESS
Upto Rs. 5,00,000 Nil 5,00,000    
Rs. 5,00,001 to Rs. Rs. 10,00,000 20% of total income minus Rs. Rs. 5,00,000 + 4% CESS 10,00,000 1,40,000 1,000
Rs. 10, 00,001 and above Rs. 1,00,000 + 30% total income minus Rs. 10,00,000 + 4% CESS 15,00,000 2,60,000 2,500

 

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