Latest Income Tax Slab Rates In India

Posted by Kuldeep Singh on April 27th, 2018

Latest Tax Slab Rates In India FY 2018-19

In India after every financial year, A new income tax rates are proposed in a Budget tabled by Indian Finance Minister.

This financial year 2018-19,new changes have been made for the benefit of middle class family having gross income 5 lakh or less.

As far as senior citizens and super senior citizens are concerned, they have plenty of tax benefits which will reduce their tax liabilities .

now we discuss changes In Tax Slab

• Standard Deduction of rs 40,000 to be deducted from your GROSS INCOME .
• Education cess renamed as Health education cess.
• Health Education cess increased from 3% to 4%.

Benefits to Senior Class

Under Section 80D they can claim higher tax rebate.

For specified diseases expenditure they can claim tax rebate under sec 80DDB .

Also senior citizens will have not to deduct tax for income upto rs 50'000 as TDS by the Concerned Banks.

How to Calculate Tax

suppose your gross salary is rs 5 lakhs

deduct rs 40,000 as standard deduction from 5 lakhs.

So remaining income is rs 460,000.

Also assume that your tax saving under section 80C is rs 150,000.

so subtract it from 460,000.

so taxable income becomes rs 310,000

Finally 0-250,000 no tax.

so deduct rs 250,000 from 310,000.

it will become rs 60,000.

so @5% of 60,000 =3000.

tax rebate of rs 2500 under section 87A is applicable.

so 3000-2500= rs 500.

4% health education cess of rs 500=20 

finally your tax payable amount is rs 20.

Thanks for reading this article.