Categories: Bank Staff

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:

  • Long term capital gains exceeding Rs 1 lakh at 10 per cent without indexation
  • Tax on distributed income by equity oriented mutual funds at 10 per cent.

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)

Related articles:

Income Tax rules which offer tax rebate and deductions to individuals
Figure out the best tax saving instrument that suits you most

 
Surendra Naik

Share
Published by
Surendra Naik
5 years ago

Recent Posts

Explained: Fundamentals of microeconomics and macroeconomics

Economists may define the subject of economics in several ways considering different aspects of the…

1 day ago

Priority sector lending norms explained

The total target and sub-targets set under priority sector lending for all scheduled commercial banks…

4 days ago

Issues facing Indian Economy

(This post elucidates Poverty Alleviation, Jobless growth, Rising Inequalities, Migration and excessive pressure on resources,…

5 days ago

What are 17 Sustainable Development Goals (SDGs) adapted by UN?

The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the…

6 days ago

India’s progress in SDGs including Climate change, and CSR Activities

The Sustainable Development Goals (SDGs), also known as the Global Goals, were adopted by the…

1 week ago

Global Issues and initiatives

Global issues are problems of economic, environmental, social, and political concerns that affect the entire…

1 week ago