Income Tax Slabs / Rates for Individuals for Financial Year 2018-19 (AY 2019-20)

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

Source: https://finotax.com/income-tax/slabs-1920

Income tax for Individuals for the Annual Year 2018-19(Financial year 2017-18) and Eligible deductions

How Income Tax is charged in India?

Income tax in India is charged based on one’s income, more the income more the tax. India has four  income slabs or groups.Tax slabs keep on changing from year to year. Over and above tax, surcharge and education cess is also charged.  These are announced in budget by the Finance Minister every year.

Income tax for Individuals for the Annual Year 2018-19(Financial year 2017-18)

New Income Tax Slabs for FY 2017-18 (AY 2018-19) have been provided based on the Finance Budget introduced by the Hon’ble Finance Minister on February 01, 2017. 

While the income tax slabs have been kept unchanged, some interesting changes have been made which will have an impact on the tax liability of Individuals.
Individuals Below 60 Yrs – Income Tax Slab 2017-18 (AY 2018-19)

Income Tax Slab	Income Tax Rate
Income upto Rs. 2,50,000	Nil
Income between Rs. 2,50,001 – Rs. 500,000	5% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000	Rs. 12,500 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000
Income above Rs. 10,00,000	Rs. 1,12,500 + 30% of the amount by which the taxable income exceeds Rs. 10,00,000

Surcharge :

• 10% of the Income Tax, where taxable income is more than Rs. 50 lacs and upto Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 50 lacs by more than the amount of increase in taxable income.
• 15% of the Income Tax, where taxable income is more than Rs. 1 crore. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.

Education Cess : 3% of the total of Income Tax and Surcharge.

Income Tax Rebate Reduced

The income tax rebate continues but it is reduced now. The income tax rebate came down to 2,500. Last year it was ₹5000. Not only the reduction, the threshold for this rebate also came down. Now, the income upto 3.5 lacs is eligible for this rebate. Earlier, income upto ₹5 lac was eligible for the income tax rebate.

Because of this provision, those who earns up to Rs 3 lacs are not required to pay any tax. Rather, if a person uses the all available deductions, the income up to Rs 5 lacs can become tax-free.

Senior Citizens (60-80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)

To avail the benefit of senior citizen’s income  tax slab of 2017-18, one should be born on or after 1st April 1937 but before 1st April 1957. These dates are applicable for the income tax slab rate of the financial year 2017-18.

Income Tax Slab	Income Tax Rate
Income upto Rs. 3,00,000	Nil
Income between Rs. 3,00,001 – Rs. 500,000	5% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,000	Rs. 20,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000
Income above Rs. 10,00,000	Rs. 1,20,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,000

Education Cess

Senior citizens are also required to pay education cess similar to other individuals. The 3% cess is charged on the income tax of senior citizens. Due to this the effective income tax slab rate increases.

Super Senior Citizens ( above 80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)

The senior citizens of above the age of 80 gets maximum tax concession from the government. They get this concession considering increased medical and healthcare expenses.

To get the benefit of this income tax slab rate, one should be born before 1st April 1937.

Income Tax Slab	Income Tax Rate
Income upto Rs. 5,00,000	Nil
Income between Rs. 500,001 – Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Any NRI or HUF or AOP or BOI or AJP

Income Tax :

Income Slabs		Tax Rates
i.	Where the taxable income does not exceed Rs. 2,50,000/-.	NIL
ii.	Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.	5% of amount by which the taxable income exceeds Rs. 2,50,000/-.
iii.	Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.	Rs. 12,500/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.	Where the taxable income exceeds Rs. 10,00,000/-.	Rs. 112,500/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

  

List of Income Tax Exemptions FY 2017-18 / AY 2018-19 (Chapter VI-A deductions list)

For full details of Income Tax exemptions click the following link:

https://www.relakhs.com/income-tax-exemptions-fy-2017-18-list/

Sources:

https://www.planmoneytax.com/income-tax-slab-rate-2017-2018/

http://finotax.com/income-tax/slabs-1819

https://finapp.co.in/tax-slab-rate/

https://www.relakhs.com/income-tax-exemptions-fy-2017-18-list/

To know about Income tax for Individuals for the Annual Year 2017-18(Financial year 2016-17) and Eligible deductions click the link given below

https://svsaibaba.blogspot.in/2017/02/income-tax-slabs-for-fy2016-17-ay2017.html

Income tax slabs for FY2016-17 / AY2017-18 and Eligible deductions

Now we are reaching the end of financial year 2016-17. It is high time to know the various slabs for Income Tax to be paid by Individuals,Senior Citizens(above 60 years) and Super Senior Citizens(above 80 years) which are given below. Various savings which are eligible for deductions as per IT act are also listed below the IT slabs. 

Hope that this article will help for your tax planning.

What is an income tax slab?

For the betterment of the society, the government of India charges a certain percent of the amount on the taxpayer. To have an unbiased approach for charging money from the various range of earners, the government has formalised a structure for charging the amount which is known as income tax slab. Income tax is mainly calculated on the gross income of an individual.

It is designed for everyone whether a person is an individual, senior citizen, HUF, companies, etc. Income tax rules are applicable to all the resident of India and the rules are governed by I-T Act of 1961.

What tax slabs are available?

The tax rate applicable for calculating liabilities of tax for the FY 2016-17/ AY 2017-18:

Individuals who are below the 60 years of age and are born after April 1, 1957.

Resident senior citizen who are 60 years of age and less than 80 years of age at any time during the FY 2016-17 and born after April 1, 1937, and before March 31, 1957

Resident super senior citizen who are above 80 years of age or more at any time during FY 2016-17 and born before April 1, 1937.

Is there any rebate offered under the I-T Act?

Yes, the rebate is offered under section 87A of the Income Tax Act. The rebate is 100% applicable for a person earning not more that 5,00,000 p.a. The maximum rebate that can be claimed under the Act is Rs.5000. If someone is falling under such criteria, he/she can claim for the rebate before applying the education cess.

The rebate amount has been increased from the previous FY which was Rs.2000 only.

What are the deductions available under chapter VI-A of the I-T Act?

Deductions of section 80 are covered under the chapter VI of the Income Tax Act. 80C for investment, 80CCD (IB) for NPS, 80CCC for pension funds, 80D for health insurance, 80E for education loan, 80EE for interest on the loan for buying house property, 80G for donations, 80U for disability, 80TTA interest on deposits in bank accounts and much more.

Source:http://www.financialexpress.com/money/want-to-know-about-the-income-tax-slabs-for-fy2016-17-ay2017-18-here-are-the-details/497260/

*INCOME TAX Exemption Updates... For every Investor For FY:16-17)*
Here is a guide to help your Tax Planning.
🔱 80 C:- Max limit    150000/- (Life Insurance Premium, MF , FD , NSC, PPF , Home Loan Principal , etc.)

🔱 80CCD:-50000/- (NPS)

🔱 80CCG:- 25000/- or 50% of your investment which ever is less

🔱 80D:-25000/-
( Mediclaim Policy for self spouse, children)
🔱 30000/- for dependent parents u/s-80D. Medical reimbursement :- 15000/- US 17(2)

🔱 80DDB:- Medical expense occurred on dependent for specified ailment.

🔱80TTA:- Up to 10000/- for Interest saving bank account

🔱 Gift tax :- Exempted upto 50000/-. Above 50k full amount taxable (FY) from other than Blood relation.. Gift from Blood relation is 100%Exempted...

🔱 Transport allowance :- 19200/- (FY)
C.E.A. :- 2400/- (FY)

🔱 HRA :- as per the calculation
🔱 24(b) :- 200000/- (home loan interest)
🔱 80G :- full amount in few selected organisation. This exemption is 50%
🔱 80GGB :- 100% exemption for political parties
🔱 80EE :- unlimited (interest on education loan)....
🔱 80U :- 75000/- (in case of taking care of a Handicapped depends)..

You can plan your Income Tax Exemptions for  Financial Year 2016-17 as per above guidelines.