Income Tax Slabs -2018

Income Tax Slabs -2018

SEE THIS IMAGE OF TAX SLAB: CLICK HERE

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:

No change in Tax Slabs
Additional cess of 1% for health care making total cess to 4% of income tax payable

Standard deduction of Rs 40,000 for Salaried and Pensioners

Transport Allowance of Rs 1,600 per month & Medical Reimbursement of Rs 15,000 per year abolished for salaried (but remains for differently enabled).

So net gain of Rs 5,800 for salaried [Rs 40,000 – Rs 1600 * 12 – Rs 15,000]

Exemption on interest income from Rs 10,000 to Rs 50,000 for senior citizens.

Medical Insurance premium exemption for senior citizen increased from Rs 30,000 to Rs 50,000 u/s 80D

Medical expenses will see increased tax benefits for senior citizens. 100,000 on critical illness u/s 80DDB

Income Tax Slabs in Gujarati:

SEE THIS IMAGE OF TAX SLAB: CLICK HERE

The Union Budget 2018-19. This budget is very significant, as it is the first budget post GST and the last full budget of the Modi Government before the general election in 2019. This budget will be the last chance for the Modi government to woo the large Indian mass. Therefore, we expect a host of measures such as increase in tax exemption limit for the salaried class in order to please them.

In the previous budget i.e. Union Budget 2017-18, the government had reduced the tax rate for individuals having income between Rs2.5-5 lakh to 5% from 10%.

Therefore, all individual taxpayers’ subsequent tax slabs got the tax benefit of Rs12,500.

However, the common man is still reeling under the burden of growing expenses.

Hence, the government should transform the whole individual tax slabs to provide some substantial relief to the people.

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:

Below 60 years of age
Senior Citizens (60 to less than 80 years of age)
Very Senior Citizens (80+ years of age)

Income tax for individual is what most tax payers want to know in Budget. In Budget 2017, the finance minister has made little changes to this. We highlight the changes and give you the new tax calculator for FY 2017-18 [AY 2018-19].

🔹Changes in Income Tax Rules:

▶It is also an excel based income tax calculator. It also takes care of all the aspects of income tax calculation. This income tax calculator give you net income on the basis of available exemption. To use this calculator you need the salary slip to give all the details of income.

▶The calculator has used the bright colors which may not be very soothing to your eyes. It is a detailed excel based calculator but not very user-friendly. You may miss some columns or cell of this calculator. A very small portion of the calculator is visible on the screen.

▶The good thing about this calculator is the form 16. An HR employee can produce form 16 using this calculator.

1. Tax reduced from 10% to 5% for Income from Rs 2,50,000 – Rs 5,00,000 leading to tax saving of up to Rs 12,500.

2. 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but less than Rs 1 crore

3. For people with net taxable income below Rs 3.5 lakh, the tax rebate has been reduced to Rs 2,500 u/s 87A

4. NO RGESS Tax exemption from FY 2017-18

5. Interest deduction on rented property capped at Rs 2 Lakh.

SEE THIS IMAGE OF TAX SLAB: CLICK HERE

▶▶You can download the Income Tax Calculator for FY 2017-18 [AY 2018-19] from the link below.
DOWNLOAD FILE