The income tax is calculated differently for individuals based on various factors such as the type of income, amount of income, age, etc. In order to calculate the income tax from salary, an individual will require declaring the total amount of earning and the total amount of deductions. The government allows the individual to draw exemption on particular types of investment.
For salaried individuals, no changes have been made to the income tax rates proposed in 2017. However, the 3% Education Cess from the previous year has been replaced with a 4% “Health and Education Cess”.
Furthermore, a standard deduction of Rs 40,000 has been introduced for all salaried individuals for transportation or medical reimbursement purposes.
For Income Tax slabs/rates for the Individuals for Financial Year 2017-18(AY 2018-19) Click the Link:https://svsaibaba.blogspot.in/2017/05/income-tax-for-individuals-for-annual.html
Income Tax slabs/rates for the Individuals for Financial Year 2018-19(AY 2019-20) are given below:
Individual resident aged below 60 years (i.e. born on or after 1st April 1959)
| Income Slabs | Tax Rates | |
|---|---|---|
| i. | Where the taxable income does not exceed ₹ 2,50,000/-. | NIL |
| ii. | Where the taxable income exceeds ₹ 2,50,000/- but does not exceed ₹ 5,00,000/-. | 5% of amount by which the taxable income exceeds ₹ 2,50,000/-. Tax Relief u/s 87A - In case of tax payers, having total income not increasing ₹ 3,50,000/-, income tax chargeable on the income or ₹ 2,500/-, whichever is less. |
| iii. | Where the taxable income exceeds ₹ 5,00,000/- but does not exceed ₹ 10,00,000/-. | ₹ 12,500/- + 20% of the amount by which the taxable income exceeds ₹ 5,00,000/-. |
| iv. | Where the taxable income exceeds ₹ 10,00,000/-. | ₹ 112,500/- + 30% of the amount by which the taxable income exceeds ₹ 10,00,000/-. |
Surcharge :
- 10% of the Income Tax, where taxable income is more than ₹ 50 lacs and upto ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 50 lacs by more than the amount of increase in taxable income.
- 15% of the Income Tax, where taxable income is more than ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 1 crore by more than the amount of increase in taxable income.
Health & Education Cess : 4% of the total of Income Tax and Surcharge.
Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years i.e. born on or after 1st April 1939 but before 1st April 1959)
| Income Slabs | Tax Rates | |
|---|---|---|
| i. | Where the taxable income does not exceed ₹ 3,00,000/- | NIL |
| ii. | Where the taxable income exceeds ₹ 3,00,000/- but does not exceed ₹ 5,00,000/- | 5% of the amount by which the taxable income exceeds ₹ 3,00,000/-. Tax Relief u/s 87A - In case of tax payers, having total income not increasing ₹ 3,50,000/-, income tax chargeable on the income or ₹ 2,500/-, whichever is less. |
| iii. | Where the taxable income exceeds ₹ 5,00,000/- but does not exceed ₹ 10,00,000/- | ₹ 10,000/- + 20% of the amount by which the taxable income exceeds ₹ 5,00,000/-. |
| iv. | Where the taxable income exceeds ₹ 10,00,000/- | ₹ 110,000/- + 30% of the amount by which the taxable income exceeds ₹ 10,00,000/-. |
Surcharge :
- 10% of the Income Tax, where taxable income is more than ₹ 50 lacs and upto ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 50 lacs by more than the amount of increase in taxable income.
- 15% of the Income Tax, where taxable income is more than ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 1 crore by more than the amount of increase in taxable income.
Health & Education Cess : 4% of the total of Income Tax and Surcharge.
Very Senior Citizen (Individual resident who is of the age of 80 years or more i.e. born before 1st April 1939)
| Income Slabs | Tax Rates | |
|---|---|---|
| i. | Where the taxable income does not exceed ₹ 5,00,000/-. | NIL |
| ii. | Where the taxable income exceeds ₹ 5,00,000/- but does not exceed ₹ 10,00,000/- | 20% of the amount by which the taxable income exceeds ₹ 5,00,000/-. |
| iii. | Where the taxable income exceeds ₹ 10,00,000/- | ₹ 100,000/- + 30% of the amount by which the taxable income exceeds ₹ 10,00,000/-. |
Surcharge :
- 10% of the Income Tax, where taxable income is more than ₹ 50 lacs and upto ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 50 lacs by more than the amount of increase in taxable income.
- 15% of the Income Tax, where taxable income is more than ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 1 crore by more than the amount of increase in taxable income.
Health & Education Cess : 4% of the total of Income Tax and Surcharge.
Any NRI or HUF or AOP or BOI or AJP
| Income Slabs | Tax Rates | |
|---|---|---|
| i. | Where the taxable income does not exceed ₹ 2,50,000/-. | NIL |
| ii. | Where the taxable income exceeds ₹ 2,50,000/- but does not exceed ₹ 5,00,000/-. | 5% of amount by which the taxable income exceeds ₹ 2,50,000/-. |
| iii. | Where the taxable income exceeds ₹ 5,00,000/- but does not exceed ₹ 10,00,000/-. | ₹ 12,500/- + 20% of the amount by which the taxable income exceeds ₹ 5,00,000/-. |
| iv. | Where the taxable income exceeds ₹ 10,00,000/-. | ₹ 112,500/- + 30% of the amount by which the taxable income exceeds ₹ 10,00,000/-. |
Surcharge :
- 10% of the Income Tax, where taxable income is more than ₹ 50 lacs and upto ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 50 lacs by more than the amount of increase in taxable income.
- 15% of the Income Tax, where taxable income is more than ₹ 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of ₹ 1 crore by more than the amount of increase in taxable income.
Health & Education Cess : 4% of the total of Income Tax and Surcharge.
* Abbreviations used :
NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person
NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person
