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

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.
Read more

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli
Read more

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis
Read more

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l
Read more

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. 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 - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
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