Latest Income Tax Slab For FY 2018-19

What is New  income tax Slab rate for FY 2018-19 and Assessment year 2019-20?Do you want to know about New Income Tax Slab Rates?

Then this is the article for you.
Two key changes have took place in Budget 2018-19

  • Education cess increased from 3% to 4%.
  • Standard Deduction of rs 40,000 for all tax payers on taxable income.
It may be noted here that taxable Income is the income which comes after deducting savings under section 80C From Gross Income.

Rebate under section 87A

As far as Rebate u/s 87A is concerned,tax payer only eligible for Rebate of rs 2500 if his/her taxable income is less than or equal to 3.5 lakhs.

Tax rate

Tax rate remains the same.That is to say firstb250,000 there is no tax.
Further 250,000-500000 tax rate is 5%.
500001-10,00000 tax rate will be 20%.

Also if taxable income is more than 10 lakh 
Tax rate will be Levied at the rate of  30%.

Further if taxable income is more than 50 lakh,surcharge @ 10% will be applicabe.

Similarly if taxable income is more than one crore 15% surcharge will be applicable.

How to calculate income tax for people having age <60 years

Let us suppose your gross salary is 6 lakhs.And deductions u/s 80C is 150,000.

Also from FY 2018-19 snadard Deduction of rs 40,000 is applicable.

So deduct 150,000 and 40,000 from 6 lakh,remaining taxable income becomes 410,000.

Now there will be no Rebate on 410,000 under section.Because taxable income is more than 3.5 lakhs.

Also deduct 250,000 from 410,000.It will become  260,000.

So 5% of 260,000 is rs 8000.And cess of 4% on 8000 is 320.

Add 320 to 8000 becomes 8320.

Conclusion:
Finally assuming that you do not avail any tax Rebate under other sections like 80U,80E 80G etc, your final taxable amount will be 8320 if your gross income  is 6 lakhs. And saving u/s 80C is 150,000.

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