Income tax calculation for the FY 2018-19

Key changes announced in the Union budget 2018 are as under

For individuals below 60 years of age

Standard deduction of Rs. 40,000 for salaried employees in lieu of transport and medical expenses
Health and education cess has been increased to 4 per cent from earlier 3 per cent
Surcharge of 10 % on income above Rs 50 lakh but less than Rs 1 cr and 15 % on income above Rs 1 crore
Govt will contribute 12% of the wages of new employees in EPF in all sectors for next 3 years

Relief to Senior Citizen:

Standard deduction of Rs 40,000 reintroduced for pension income
Exemption on interest of 50000/-for deposit and recurring deposit of Senior Citizen
Health insurance Rs.50000/-, critical illness 1 lakh including preventive medical checkup

Tax on equities:

Tax applicable to individuals for the financial year 2018-19 (AY 2019-20)

Born on after 01.04.1959

Income Slabs	Tax & Surcharge
Income slab up to Rs.2.50 lakh	Nil
Income from 2.5 lakh to 5 lakh	5%
Income from 5 lakh to Rs.10 lakh	Rs.12,500+20% on 5 lakh up to Rs.10 lakh+(Cess of 4% on tax liability)
Income more than 10 lakh	Rs.1,12,500+ 30% on above10 lakh +(Cess of 4% on tax liability)
Income from 50 lakh to Rs.1 crore	13,12,500 + 30% on 50 lakh up to 1 crore+(Cess of 4% on tax liability and 10% surcharge)
Income from Rs.1 crore and above	28,12,500 +30% on above 1 crore+ (Cess of 4% on tax liability and 15% surcharge)

Senior Citizen Born on before 31.03.1959

Income Slabs	Tax
Taxable Income up to Rs.3.50 lakh (u/s 87 A)	Nil .
Income from 3 lakh to 5 lakh	5% + Cess of 4% on tax liability
Income from 5 lakh to Rs.10 lakh	Rs.10,000+20% on 5 lakh up to Rs.10 lakh+(Cess of 4% on tax liability)
Income from 10 lakh to rs.50 lakh	Rs.1,10,000+ 30% on 10 lakh up to Rs.50 lakh+ (Cess of 4% on tax liability)
Income from 50 lakh to Rs.1 crore	13,10,000 + 30% on 50 lakh up to 1 crore+ (Cess of 4% on tax liability and 10% surcharge)
Income from Rs.1 crore and above	28,10,000 +30% on above 1 crore+(Cess of 4% on tax liability and 15% surcharge)

Super Senior Citizen (Born on before 31.03.1939)

Income Slabs	Tax + Surcharge
Income slab up to Rs.5 lakh	Nil
Income from 5 lakh to Rs.10 lakh	20%+ (Cess of 4% on tax liability)
Income from 10 lakh to rs.50 lakh	Rs.1,00,000+ 30% on 10 lakh up to Rs.50 lakh+(Cess of 4% on tax liability)
Income from 50 lakh to Rs.1 crore	13 lakh + 30% on 50 lakh up to 1 crore+ (Cess of 4% on tax liability and 10% surcharge)
Income from Rs.1 crore and above	28 lakh +30% on above 1 crore+ (Cess of 4% on tax liability and 15% surcharge)