Income tax slabs for Financial Year 2018-19

Budget 2018 stated no change in the Income tax slab rates for the financial year 2018-19 (assessment year 2019-20) and What does this imply? This means the Income tax slabs remain similar to those in the financial year 2017-18. So, we thought of highlighting the tax rates as applicable to individuals below 60 years, for senior citizens and super-senior citizens.

Different income group people have huge expectations from the Budget every year. This time too individuals from various categories had high hopes from the budget. The most important aspect regarding direct taxes that we shall be covering here.

We have mentioned the Income tax rates applicable for individuals in the tables below.

1. Income tax slab for Resident Individuals below 60 years of age:

Income	Tax rate
Upto Rs.2.5 lakhs	No tax
From 2.5 lakhs to 5 lakhs	5%
From 5 lakhs to 10 lakhs	20%
Income > Rs.10 lakhs	30%

2. Income tax slab for Senior citizens i.e. Resident Individuals above 60 years but below 80 years

Income	Tax rate
Upto Rs.3 lakhs	No tax
From 3 lakhs to Rs.5 lakhs	5%
From 5 lakhs to Rs.10 lakhs	20%
Income > Rs.10 lakhs	30%

3. Income tax slab for Super senior citizens i.e. Resident Individuals above 80 years of age

Income	Tax rate
Upto Rs.5 lakhs	No tax
From 5 lakhs to Rs.10 lakhs	20%
Income > Rs.10 lakhs	30%

You may also like: Tax slab for Senior Citizens in India: Benefits & Deductions

*Health and Education Cess:

Although, the income tax slabs are same as that of the previous financial year. But, one important amendment to add here is the 1% increase in the cess rate.

Remember, the education cess that was earlier charged @2% for primary education and 1% for secondary & higher education that amounted to a total 3% the same has now been replaced by “Health and Education Cess”. This cess shall now be charged @4% on your the tax payable.

*Surcharge:

There is no change in surcharge also. Surcharge shall continue to apply as earlier. The details are given below:

• If the total income exceeds Rs.50 lakhs but is below Rs.1 Crore then a 10% surcharge on income tax will be charged.
• If the total income is in excess of Rs.1 Crore then a 15% surcharge on income tax shall be charged.

Important amendment in Corporate Tax Rate:

The real bonanza and a big welcome move brought in the Union budget 2018 was for the Companies, in the form of reduction in the Corporate Tax rate.

The reduced rate of 25% that was available for companies having a turnover of less than Rs. 50 crores earlier has been proposed to be extended to companies who have reported a turnover of up to Rs. 250 crore in the Financial Year 2016-17.

This is indeed a major boost for the benefit of the micro, small and the medium scale enterprises in the country.

Are you thinking about your tax planning, you may also like to go through our popular post Tax deduction Under Section 80C: Best Tax Saving Investments

What are your views on the changes introduced in the Budget 2018. Are you satisfied with the changes made in this year’s budget or you had some other expectations? Feel free to share your opinions thereon in the comment section.