Your income from salary, business or other income like income from fixed/recurring deposits etc are taxed as per income tax slabs. Budget 2018 has made no change to the tax slab rates, however following changes have been made:
There is NO separate tax slab for men and women. Earlier women used to have slight benefit over men in terms of lower taxes!
The tax slabs are determined on age of person. As of today there are 3 slab rates based on age:
How much taxes you pay next year? Download FY 2018-19 Income Tax Calculator
The table below gives the tax slab rates:
Income Slab | Tax Rate |
Income up to Rs 2,50,000 | No Tax |
Income from Rs 2,50,000 – Rs 5,00,000 | 5% |
Income from Rs 5,00,000 – 10,00,000 | 20% |
Income more than Rs 10,00,000 | 30% |
|
|
Income Slab | Tax Rate |
Income up to Rs 3,00,000 | No Tax |
Income from Rs 3,00,000 – Rs 5,00,000 | 5% |
Income from Rs 5,00,000 – 10,00,000 | 20% |
Income more than Rs 10,00,000 | 30% |
|
Income Slab | Tax Rate |
Income up to Rs 2,50,000 | No Tax |
Income from Rs 2,50,000 – Rs 5,00,000 | No Tax |
Income from Rs 5,00,000 – 10,00,000 | 20% |
Income more than Rs 10,00,000 | 30% |
|
Company Turnover | Tax Rate |
Less than 250 crore | 25% |
More than 250 crore | 30% |
Surcharge:
Health Cess: 1% cess on income tax including surcharge Education Cess: 2% cess on income tax including surcharge Secondary and Higher Education Cess: 1% cess on income tax including surcharge |
Also Read: 25 Tax Free Incomes & Investments in India
A partnership firm (including LLP) income is taxable at 30%.
Surcharge: 12% surcharge on income tax if the total income exceeds Rs 1 crore
Health Cess: 1% cess on income tax including surcharge
Education Cess: 2% cess on income tax including surcharge
Secondary and Higher Education Cess: 1% cess on income tax including surcharge
Some income related to capital gains are taxed at special rates as shown below:
Capital Gains | Tax Rate |
Short term capital gains from assets (Other than shares & mutual funds) | At Income Tax Slab rates listed above |
Long term capital gains from assets (Other than shares & mutual funds) | 20% (+4% edu + health cess) |
Short term capital gains on shares and equity mutual funds | 15% (+4% edu + health cess) |
Long term capital gains on shares and equity mutual funds | 10% (+4% edu + health cess) |
Short term capital gains on debt mutual funds | At Income Tax Slab rates listed above |
Long term capital gains on debt mutual funds | At 20% (+4% edu + health cess) with indexation |
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View Comments
Very useful information
form 16
Hi Amit
Great Post. Filing income tax return on time is the duty of every responsible citizen. But for that, we need to know the rules of Income Tax set by tax department. can you just Explain the rules.
Thanks
Does handicapped person gets additional 38,400 (3200 * 12) benefit apart from Standard Deduction of 40,000 ?
yes
4% Cess not applicable on partnership firm?
It is - had missed it - corrected now. Thanks for pointing it out
Hi,
What does Standard deduction of Rs 40,000 for Salaried and Pensioners means?
Is conveyance allowance has increased beyond 19200
Conveyance Allowance & Medical reimbursement is subsumed in the standard deduction. This means you'll have no conveyance allowance (or it will not be tax free)