Income Tax Slab Rate For FY 2018-19 (AY 2019-2020)

By | February 3, 2018

New Income Tax Rates 2018-19: Budget 2018 has disclosed recently by our FM on 1st February 2018 and it’s cleared that there is no change in Income Tax Slab for FY 2018-19 (AY 2019-20).

That means, whatever income tax you are paying this year as per the previous year Income Tax Slab for FY 2017-18 (AY 2018-19), you are going to pay the same.

There are some changes in income tax slab for senior citizen, but for salaried people income tax exemption limit is same as previous years only. In this article I am going to share about the complete details about the income tax slab 2018-19. You can follow the same income tax calculator for ay 2017-18, for next year as well.

New income tax slab for FY 2018-19 (AY 2019-20) for female, Male, Sr. Citizen

Although there is almost nothing for a salaried person as income tax rebate in this budget 2018, but for senior citizen there are some good news. Let’s explore first what will be the income tax slabs for next financial year.

Quick Highlight of Budget 2018 Proposals for FY 2018-19(AY 2019-20)

  • There is no change in individual income tax slab rates for next financial year.
  • Now there will be no 3% education cess. A new Health and Education Cess @ 4% is going to replace 3% education cess.
  • Now a 10% LTCG or Long-term capital gains tax is going to be applied on selling of equity share or mutual funds without indexation benefit. That means now you have to pay 10% LTCG tax on mutual fund investment as well. However, Capital gains tax for until 31 January 2018 will be grandfathered

Latest changes in income tax slab Rate for 2018-19

So, finally the much awaited declaration of the year has just done on income tax. It was expected that this year there will be higher deduction on the base income tax slab. But it is not exactly happened. But still salaried class people can save some money.

Here is the latest Income Tax Slab Rate for FY 2018-19 & AY 2019-20 which has been disclosed by our FM Mr. Arun Jaitley on Budget 2018.

Individual tax payers & HUF (less than 60 years old) (both men & women)

Income SlabTax Rate
Income up to Rs. 2,50,000*No Tax
Income from Rs. 2,50,000 – Rs. 5,00,0005%
Income from Rs. 5,00,000 – 10,00,00020%
Income more than Rs. 10,00,00030%
Surcharge:
10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore.
15% of income tax, where total income exceeds Rs. 1 crore.
Cess: 3% on total of income tax + surcharge.
* Income upto Rs. 2,50,000 is exempt from tax if you are less than 60 years old.

Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men & Women)

Income SlabTax Rate
Income up to Rs. 3,00,000*No Tax
Income from Rs. 3,00,000 – Rs. 5,00,0005%
Income from Rs. 5,00,000 – 10,00,00020%
Income more than Rs. 10,00,00030%
Surcharge:
10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore.
15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
* Income up to Rs. 3,00,000 is exempt from tax if you are more than 60 years but less than 80 years of age.

Super senior citizens (80 years old or more) (both men & women)

Income SlabTax Rate
Income up to Rs. 2,50,000*No Tax
Income up to Rs. 5,00,000*No Tax
Income from Rs. 5,00,000 – 10,00,00020%
Income more than Rs. 10,00,00030%
Surcharge:
10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore.
15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income up to Rs. 5,00,000 is exempt from tax if you are more than 80 years old.

How Much Tax One can save as per Income Tax Slab 2017-18

As the base rate is changed only for income up to 5 lakh, so here is the example of how much money one can save after the latest changes in Income tax slabs. You can easily use any of the available income tax calculator online and find out the tax payable for next financial year as per the latest slab rates.

Annual Income <= 5 Lakh [Saving up to Rs 2575]

AY 2017-18 : Net tax payable (Including education cess) is Rs 5,150. But for Ay 2018-19: Net tax payable (Including education cess) is Rs 2,575. If the limit of Rs 1.5 lakh under Section 80C for investment is used fully, the tax would be zero for people with income of Rs 4.5 lakhs.

Annual Income > 5 Lakh [Saving Rs 12,500/- per person.]

People who have income more than Rs 5 lakh will get max saving of Rs 12,500 irrespective of higher tax bracket. But the surcharge & education cess may vary.

Annual Income > 1 Crore [Max saving up to Rs 14,806]

The relief can go up to a maximum of Rs 14,806 (with 15% surcharge) for those with income of over Rs 1 crore.

Proposed Income Tax Slabs 2017-18, AY 2018-19 in Budget 2017

Right now the information shared here is not at all official. This is an expected New Income Tax Slabs 2017-18 which has been collected from zeebiz.com website.

As per the proposal, the government likely to impose 10% tax on income between Rs 4 lakh to Rs 10 lakh in the new tax bracket. Currently, for the income exceeding Rs 2.5 lakh to Rs 5 lakh is liable for 10% tax.

For the income between Rs 10 lakh to Rs 15 lakh, the tax rate is likely to be 15% as per the new proposal. Presently, 20% is imposed on income between Rs 5 lakh to Rs 10 lakh.

Further, for the income between 15 lakh to Rs 20 lakh, 20% of tax will be charged. Currently, 30% tax rate is levied on income more than Rs 10 lakh.

Income tax for income over Rs 20 lakh may be fixed at 30%, the source said.

How much money one can save with this new proposed income tax slab 2017-18

I am considering a person with an annual income of rs 35 lakh to make this calculation understandable, if this proposed income tax slab is going to apply.

Income Tax Slab Rate FY 2016-17
0 – 2.5 Lakh0
2.5 – 5 Lakh25,000 [10% tax]
5 – 10 Lakh1,00,000 [20% Tax]
10 Lakh +4,50,000 [30% tax]

Total Tax Paid : 5,75,000 [without considering any surcharge]

As per proposed Income tax Slab rate FY 2017-18

This is just a proposed calculation, for actual saving please check above.

0 – 4 Lakh0
4 – 10 Lakh60,000 [10% tax]
10 – 20 Lakh2,00,000 [20% Tax]
30 Lakh +1,50,000 [30% tax]

Total Tax Paid : 4,10,000 [without considering any surcharge]. That means a saving of 1,65,000 which is simply massive. This is just a rough calculation to see how much one can save if the new income tax slab is going to implement. You can do your own calculation, as I don’t carry the responsibility of the accuracy of this calculation, it is just for education purpose.

Conclusion: Income Tax Slab Rate For FY 2018-19 (AY 2019-2020)

I will be updating this page with the accurate income tax slab every year after the Budget declaration. If this income tax proposal become reality, this will be the remarkable day for every salaried person in India. But after seeing the updated from Budget 2018, I think it’s not going to be real in near future.

Do you think this Budget 2018 has delivered up to your expectations? Share your thoughts about Income Tax Slab Rate For FY 2018-19 (AY 2019-2020) here by writing a comment below.

2 thoughts on “Income Tax Slab Rate For FY 2018-19 (AY 2019-2020)

  1. M KPN

    Income Tax Slab expected:
    up to 5 lakhs Nil
    5 lakhs to 10 lakhs 10%
    10 lakhs to 15 lakhs 20%
    15 lakhs + 30%

    Reply

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