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

All about "Derivatives"

What are derivatives? Derivatives are financial instruments, which as the name suggests, derive their value from another asset — called the underlying. What are the typical underlying assets? Any asset, whose price is dynamic, probably has a derivative contract today. The most popular ones being stocks, indices, precious metals, commodities, agro products, currencies, etc. Why were they invented? In an increasingly dynamic world, prices of virtually all assets keep changing, thereby exposing participants to price risks. Hence, derivatives were invented to negate these price fluctuations. For example, a wheat farmer expects to sell his crop at the current price of Rs 10/kg and make profits of Rs 2/kg. But, by the time his crop is ready, the price of wheat may have gone down to Rs 5/kg, making him sell his crop at a loss of Rs 3/kg. In order to avoid this, he may enter into a forward contract, agreeing to sell wheat at Rs 10/ kg, right at the outset. So, even if the price of wheat falls ...
Read more

Zero Coupon Bonds or discount bond or deep discount bond

A ZERO-COUPON bond (also called a discount bond or deep discount bond ) is a bond bought at a price lower than its face value with the face value repaid at the time of maturity.   There is no coupon or interim payments, hence the term zero-coupon bond. Investors earn return from the compounded interest all paid at maturity plus the difference between the discounted price of the bond and its par (or redemption) value. In contrast, an investor who has a regular bond receives income from coupon payments, which are usually made semi-annually. The investor also receives the principal or face value of the investment when the bond matures. Zero-coupon bonds may be long or short-term investments.   Long term zero coupon maturity dates typically start at 10 years. The bonds can be held until maturity or sold on secondary bond markets.
Read more

SBI bonds FAQ

  Maximum retail subscription and over – subscription There is a lot of excitement around these bonds, so I won't be surprised if they get over-subscribed on the first day itself. So, I thought Sameer asked a very good question about over-subscription. Here is that discussion. Here are some other questions that you may find useful. Can I trade the SBI bonds on NSE after it lists? Yes, these can be traded after listing. Where can I get the application forms, and can I buy the bonds online? You can get the application from notified branches, and then fill it up there and submit it. To the best of my knowledge, there is no way to invest in them online, but if anyone knows otherwise then please leave a message, and let us know. Can NRIs apply for these bonds? NRIs can't apply for these bonds as they fall under one of the ineligible categories. Can you take a loan by keeping the SBI bonds as security? The terms of the issue in the prospectus state that the bank shall no...
Read more

ICICI Prudential Balanced Fund

 ICICI Prudential Balanced Fund scheme seeks to generate long-term capital appreciation and current income by investing in a portfolio that is investing in equities and related securities as well as fixed income and money market securities. The approximate allocation to equity would be in the range of 60-80 per cent with a minimum of 51 per cent, and the approximate debt allocation is 40-49 per cent, with a minimum of 20 per cent. An impressive show in the last couple of years has propelled this fund from a three-star to a four-star rating. The fund has traditionally featured a high equity allocation, hovering at well over 70 per cent, which is higher than the allocations of the peers. But in the last one year, the allocation has been moderated from 78-79 per cent levels to 66-67 per cent of the portfolio. ICICI Prudential Balanced Fund appears to practise some degree of tactical allocation based on market valuations. Within equities, well over two-thirds of the allocation is parked i...
Read more

Principal Emerging Bluechip

In its near ten year history, this fund has managed to consistently beat its benchmark by huge margins The primary aim of Principal Emerging Bluechip fund is to achieve long term capital appreciation by investing in equity and related instruments of mid and small-cap companies. In its near ten year history, this fund has managed to consistently beat its benchmark by huge margins. This fund defined the mid-cap universe as stocks with the market capitalisation that falls within the range of the Nifty Midcap Index. But, it can pick stocks from outside this index and also into IPOs where the market capitalisation falls into this range. Principal Emerging Bluechip fund's portfolio is well diversified in up to 70 stocks, which has aided in its performance over different market cycles. On analysing its portfolio, the investments are in quality companies that meet its investment criteria with a growth-style approach. Not a very big-sized fund, it has all the necessary traits to invest with...
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