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

Understanding Your Cibil Credit Information Report

   WE ARE all familiar with the anxiety and uncertainty that we feel when applying for a loan. After all, it's the lender who decides whether we can own our dream home, our first car, or whether our children can pursue higher education. In a nutshell, a better life depends on the lender's decisions.    While other factors do play a part in the lender's decision, the Cibil Credit Information Report ( CIR ) plays a crucial role in a lender's decision to approve a loan application.    Previously, lenders would treat all loan seekers equally. Each applicant, if approved by the lender's internal credit policy, would be charged at the same interest rate for a particular loan size and purpose. The lenders would charge a higher interest rate to all the borrowers, in order to compensate for the possible default of a small portion of the loan disbursed. In other words, it's like a professor (the lender) punishing an entire class (borrowers) for the mischief played b...
Read more

Good Loan

Why Is It A Good Loan?: Loans against gold are cheaper and better than personal loans as the former are available at lower interest rates. In contrast, the interest rates on personal loans are not standardised and can vary from bank to bank. Also, a personal loan depends on a host of factors including, the borrower's salary, profession and the purpose for which the loan is being taken.      For instance, the interest rate on a personal loan of 5 lakh falls in a wide range of 15-30%. But loans against gold are available for as low as 11%. Secured borrowing such as a loan against gold, investments or property is cheaper because it is backed by some assets, which command a good value at any point of time. If the borrower defaults on the loan, the banks can liquidate the assets to settle the loan account.    Being a secured loan, the risk of default and credit losses is significantly lower in this loan compared to other forms of loan for personal use. Given the lower risk, gold loa...
Read more

Reliance Health Total

  Reliance Life Insurance has launched Reliance Health Total, a non-linked, non-participating and non-variable health insurance plan . It provides a fixed benefit cover for hospitalisation, critical illnesses and surgeries. The customer can also make a claim for over-the-counter health-related expenses. This is a regular-pay, five-year plan that can be renewed till the age of 99. The plan comes with two options: customers can choose a higher medical reimbursement benefit or a higher sum insured. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - I...
Read more

Right Size your SIPs in terms of tenure and amount

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India)    Systematic investment plans ( SIPs ) are here to stay. Going by the growing number of SIPs, it does look like investors have taken to them in a big way. Today as much as . 1,000 crore flow into SIPs every month. A SIP, as the name denotes, is a method to invest a fixed amount in a mutual fund at regular intervals --generally monthly or quarterly. It is easy to do and the minimum amount with most mutual funds is a mere . 1,000 per month. You can write post-dated cheques for your investment, or give an auto-debit facility from your bank account. In fact, most investors today prefer setting up an auto debit for their SIPs, since writing cheques is cumbersome. Also, you can choose any tenure that you want for your SIP — six months, one year, five years, 10 years or even opt for a perpetual SIP which will continue forever till you stop it....
Read more

Some tips for individual investors for investment planning

These days, the stock markets are quite volatile in nature with a bearish bias. Rallies do not last long in the markets and peaks of market rallies are reducing. The markets are hitting fresh lows in every fall. Many blue chip stocks are trading 50 percent lower than their high levels. Many stocks are currently trading at their year's low prices or all-time low prices. Many investors have lost their hard-earned money and many others are stuck with stocks that have corrected heavily in the last few weeks. Here are some tips for investors already invested in the stock markets: 1) Hold fundamentally strong options The domestic macroeconomic fundamentals are strong. The GDP growth rate is expected to slow down slightly from the nine percent last year to around 7 - 7.5 percent this year. This is still quite good and encouraging in comparison to other developed countries. The current market crash can be attributed largely to foreign institutional investors' ( FIIs ) outflows but...
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