Latest News
-
Emmforce Autotech IPO Debut April 23: Issue Size, Price Band, Check Details? -
1:5 Stock Split: PSU Bank Fixes Record Date For First Ever Stock Split; Buy For Rs 650-680 Targets -
Closing Bell: Market Stages Smart Recovery, Sensex & Nifty Snap 4-Day Losing Streak Led By HDFC Bank -
Hindustan Zinc's Quarterly Profits Dive 21% Amid Global Metal Price Slump, Shares Plummet; Buy Or Not? -
IRFC, RVNL, IRCTC, Railtel: Railway Stocks In Focus As Election Polls Begin; Mega Rs 10-12 Lakh Crore Plan -
Rs 14/Share Dividend: Stockbroking Co To Consider Bonus Share, Shares Up 126% In 180-Days -
Varyaa Creations IPO Set To Shine: Boasts Robust GMP Of Rs 100 -
BEL, HAL, Cochin, Mazagon Dock: Why Defence Stocks Are Flying High When Middle East Is In Kaboom? -
FII-Backed Penny Stock Issues New Update On Warrants, Shares Gain 111% In 3-Yrs -
Top 5 Bank Savings Accounts With No Hidden Charges; Check Details?
Income Tax Slab Rates for FY 2018-19 (AY 2019-20)
The Union Budget presentation for the financial year 2018-19 revealed there were no changes in the tax slabs but there were new improvements which include an increase in education and healthcare cess
The Union Budget presentation for the financial year 2018-19 revealed there were no changes in the tax slabs but there were new improvements which include an increase in education and healthcare cess chargeable on taxable income and standard deduction. Below is the detailed information on tax slabs for individual taxpayers and Hindu Undivided Family (HUF) in India.
Income Tax Slabs for Individuals (men & women less than 60 years of age) & HUF
The Income Tax Slab for men and women less than 60 years of age and HUF.
| Annual Income | Tax Rate |
|---|---|
| Up to Rs.2,50,000 | Nil |
| Rs.2,50,001 to Rs.5,00,000 | 5% |
| Rs.5,00,001 to Rs.10,00,000 | 20% |
| Above Rs.10,00,000 | 30% |
What is Surcharge?
Surcharge is an additional tax charged over taxable income. Surcharge is a part of the progressive tax system followed in India. A progressive tax system ensures that individuals with higher income contribute more tax than those with lesser income.
Income Tax Slabs for Senior Citizens (men & women between 60 & 80 years of age)
The income tax slab for senior citizens above 60 but less than 80 years of age:
Annual Income Tax Rate Up to Rs.3,00,000 Nil Rs.3,00,001 to Rs.5,00,000 5% Rs.5,00,001 to Rs.10,00,000 20% Above Rs.10,00,000 30%
Also Read: Benefits to Senior Citizens in Union Budget 2018
What is Cess?
Cess or health and education cess is an additional tax deduction on taxable income. Amount collected from education and health cess goes towards the funding of education and health projects of the government of India.
Income Tax Slabs for Super Senior Citizens (men & women above 80 years of age)
The income tax slab and tax rates for senior citizens over 80 years of age:
| Annual Income | Tax Rate |
|---|---|
| Up to Rs.5,00,000 | Nil |
| Rs.5,00,001 to Rs.10,00,000 | 20% |
| Above Rs.10,00,000 | 30% |
What are the changes in taxation this year?
There have been no changes in the tax slabs for the FY 2018-19. However, salaried employees and pensioners get a standard deduction of Rs 40,000 in lieu of transport and medical expenses. The education cess has also increased to 4% from 3%. This move was made to fund the new educational plans of the government for the coming year.
Also Read: What is Standard Deduction in India?
Understanding the difference between FY and AY in India
Financial Year (FY) and Assessment Year (AY) are both periods between April 1 to March 31 of the following calendar year.
For tax computation purposes FY is the year where earn your income and AY is the year your income is assessed for taxes. For example your income earned between April 1st, 2017 to March 31st, 2018 will be assessed and taxed between April 1, 2018 to March 31st, 2019.
