Skip to main content

Income Tax Slabs For 2018

Best SIP Funds to Invest Online 



Income Tax Rates, Slabs For 2017-18

Finance Minister Arun Jaitley in Budget 2018 left the basic income tax rates and slabs unchanged. However, he announced a number of changes that will impact how much tax you pay for FY 2018-19 (assessment year 2019-20). For financial year 2018-19, taxpayers have to fork out a higher cess of 4 per cent, as compared to 3 per cent for 2017-18. From April 1, 2018, a new long-term capital gains tax above Rs 1 lakh on sale of equity shares and equity-oriented mutual funds will be levied at 10 per cent, without the benefit of indexation. But for the benefit of taxpayers, only gains after January 31, 2018 will be taxed. Also, a tax at the rate of 10 per cent will be levied on dividend distributed by equity-oriented mutual funds.

All about taxes and investments 


For FY19, taxpayers, particularly in the lower tax brackets, will benefit from the proposed introduction of Rs. 40,000 standard deduction. This standard deduction has been proposed in place of existing deductions of Rs. 19,200 for transport allowance and Rs. 15,000 for medical reimbursement. This will benefit 2.5 crore salaried employees. Pensioners, who normally do not enjoy any allowance for transport and medical expenses, will also benefit from it.

In Budget 2018, the finance minister also proposed a number of benefits for senior citizens, giving them a higher deduction on income from interest and tax benefits on healthcare spending.

For FY19, taxable income up to Rs 2.5 lakh would not attract any tax, for individuals under the age of 60 years. From Rs 2,50,001 to Rs. 5,00,000, it will attract a 5 per cent tax and from Rs. 5,00,001 to Rs. 10,00,000, a tax rate of 20 per cent. Taxable income above Rs 10 lakh will attract income tax at the rate of 30 per cent.

Income tax slabs for taxpayers for FY2018:

General category Senior citizens Super senior citizens
(Up to 60 years of age) (60-80 years) (Above 80 years)
Income Tax Income Tax Income Tax
Up to Rs 2.5 lakh Nil Up to Rs 3 lakh Nil Up to Rs 5 lakh Nil
Rs 2,50,001-Rs 5 lakh 5% Rs 3,00,001-Rs 5 lakh 5% Rs 5,00,001-Rs 10 lakh 20%
Rs 500,001-Rs 10 lakh 20% Rs 5,00,001-Rs 10 lakh 20% Above Rs 10 lakh 30%
Above Rs 10 lakh 30% Above Rs 10 lakh
30%

Surcharge of 10% for income between Rs 50 lakh and Rs 1 crore with marginal relief
Surcharge of 15% for income above Rs 1 crore with marginal relief
# Rebate of up to Rs 2,500 for taxable salary up to Rs 3.5 lakh
# Education and higher education cess of 3%

Income tax slabs for taxpayers for FY 2018-19:

General category Senior citizens Super senior citizens
(Up to 60 years of age) (60-80 years) (Above 80 years)
Income Tax Income Tax Income Tax
Up to Rs 2.5 lakh Nil Up to Rs 3 lakh Nil Up to Rs 5 lakh Nil
Rs 2,50,001-Rs 5 lakh 5% Rs 3,00,001-Rs 5 lakh 5% Rs 5,00,001-Rs 10 lakh 20%
Rs 500,001-Rs 10 lakh 20% Rs 5,00,001-Rs 10 lakh 20% Above Rs 10 lakh 30%
Above Rs 10 lakh 30% Above Rs 10 lakh 30%

Surcharge of 10% for income between Rs 50 lakh and Rs 1 crore with marginal relief

Surcharge of 15% for income above Rs 1 crore with marginal relief
# Rebate of up to Rs 2,500 for taxable salary up to Rs 3.5 lakh
# Cess of 4%

For FY19, senior citizens will get higher interest income exemption limit on deposits in banks and post offices, including recurring deposits. A new Section 80TTB is proposed to be inserted in the Income Tax Act to allow a deduction up to Rs. 50,000 in respect of interest income from deposits held by senior citizens. However, no deduction under Section 80TTA will be allowed for senior citizens. Currently, a deduction up to Rs. 10,000 is allowed under Section 80TTA of the Income Tax Act to an individual in respect of interest income from a savings account.

Senior citizens will also enjoy higher threshold for deduction of tax at source on interest income. This limit for senior citizens is proposed to be hiked from Rs. 10,000 to Rs. 50,000. In Budget 2018, the government proposes to increase the deduction for senior citizens on payment of health insurance premiums.



SIPs are Best Investments when Stock Market is high volatile. Invest in Best Mutual Fund SIPs and get good returns over a period of time. Know Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Birla SunLife Manufacturing Equity Fund

The Make in India program was launched by Prime Minister Naredra Modi in September 2014 as part of a wider set of nation-building initiatives. It was devised to transform India into a global design and manufacturing hub. The primary motive of the campaign is to encourage multinational as well domestic companies to manufacture their products in India. This would create more job opportunities, bring high-quality standards and attract capital along with technological investment to bring more foreign direct investment (FDI) in the country.   Why India as the next manufacturing destination?   The rising demand in India along with the multinational's desire to diversify their production to include low-cost plants in countries other than China, can help India's manufacturing sector to grow and create millions of jobs. In the words of our Honourable Prime Minister- Mr. Narendra Modi, India offers the 3 'Ds' for business to thrive— democracy,...
Read more

Total Returns Index brings out real Equity Funds Performers

From February, equity mutual funds have to change their benchmarks to account for dividend payments. Until now, funds used price-based benchmarks alone. TRI or total return indices assume that dividend payouts are reinvested back into the index. What this does is lift the overall index returns, because dividends get compounded. For example, the Sensex TRI index will consider dividend payouts of its constituent companies while the Nifty50 TRI index will consider dividends of its constituents. Using TRI indices as benchmarks comes on the argument that an equity funds earn dividends on the stocks in its portfolio, which they use to buy more stocks. Therefore, using an index that also considers dividend reinvestment would be a more appropriate benchmark. Shrinking outperformance With a stiffer benchmark, it is obvious that the margin by which an equity fund outperforms the benchmark would shrink. Rolling one-year returns from 2013 onwards, the average margin by which largecap funds out...
Read more

Stock Review: Havells

HAVELLS India's stock performance has been muted in the past three months, in line with the weak broader market. But, given the turnaround in its overseas subsidiary and the launch of new products in its consumer durable business, the company's stock may undergo a re-rating.    Havells is India's leading consumer electrical goods company, with consolidated sales of . 5,527 crore in the past four quarters. Its wholly-owned subsidiary Sylvania, which makes lighting and fixtures, has established brands in European, Latin American and Asian markets. Sylvania repre sented nearly half of the company's consolidated revenues in the first half of FY11.    Sylvania's poor financials hit Havells' consolidated performance in FY10. But, this has changed in the cur rent fiscal. Havells has reduced fixed costs of Sylvania by exiting from unprofitable businesses and outsourcing manufacturing to low-cost locations such as India and China. In the September 2010 quarter, Sylv...
Read more

Kisan Vikas Patra - KVP

  Kisan Vikas Patra (KVP) First launched in 1988, the Kisan Vikas Patra (KVP) is one of the premier and popular saving scheme offering from the Indian Postal Department. This product has had a very chequered history- initially successful, deemed a product that could be misused and thus terminated in 2011, followed by a triumphant return to prominence and popular consumption in 2014. The salient features of KVP are as follows- The grand USP- Money invested by the applicant doubles in 100 months (8 years, 4 months). KVPs are available in the following denominations- Rs.1000, Rs.5000, Rs.10,000 and Rs.50,000. The minimum purchase value for the KVP is Rs.1000. There is no maximum limit. KVPs are available at all departmental post offices across India. These certificates can be prematurely encashed after 2 ½ years from the point of issue. KVPs can be transferred from one individual to another and from one post office to another. ----------------------------------------------------- Inve...
Read more

Health for Wealth - How to buy Health Insurance ?

Tax Saving Mutual Funds Online Current open Infra Bond Application form   HEALTH insurance is a relatively new phenomenon in India. Hence, it is not on the top of the mind for most people to make a conscious commitment towards health insurance. However, it is imperative for each one of us to plan for better health for our families and ourselves. There's no better way than to start with making health your top priority this year. So, your health insurance resolution charter would look something like: ■ Invest in health for wealth: Timely investment in health insurance can help build a security net and hedge sudden dilution of another financial asset class in the event of a health emergency, making it imperative to opt for a comprehensive health insurance plan. ■ Buy a comprehensive health cover that fu lfills your health needs for life: Buy a personal health insurance cover even if you have an employee cover because 'employer provided' health insuranc...
Read more
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now