INCOMETAX SLABS FOR FINANCIAL YEAR 2018-19 ASSESSMENT YEAR 2019-20

Tax applicable for individuals below 60 years

Annual Income	Tax Rates	Health and Education Cess
Up to Rs.2,50,000	Nil	Nil
Rs.2,50,001-Rs.5,00,000	5%   (total income minus Rs 2,50,000)	4% of income tax
Rs.5,00,001-Rs.10,00,000	Rs.12,500  +  20% of (total income minus Rs 5,00,000)	4% of income tax
Above Rs.10,00,000	Rs.1,12,500 + 30% of (total income minus Rs 10,00,000)	4% of income tax

Tax applicable for individuals over 60 years and under 80 years

Annual Income	Tax Rates	Health and Education Cess
Up to Rs.3,00,000	Nil	Nil
Rs.3,00,001-Rs.5,00,000	5%  (total income minus Rs 3,00,000)	4% of income tax
Rs.5,00,001-Rs.10,00,000	Rs.10,000 + 20% of (total income minus Rs 5,00,000)	4% of income tax
Above Rs.10,00,000	Rs.1,10,000 + 30%  of (total income minus Rs 10,00,000)	4% of income tax

Tax applicable for individuals over 80 years and above

Annual Income	Tax Rates	Health and Education Cess
Up to Rs.5,00,000	Nil	Nil
Rs.5,00,001-Rs.10,00,000	20% of (total income minus Rs 5,00,000)	4% of income tax
Above Rs.10,00,000 Rs.1,12,500	Rs.1,00,000 + 30% of (total income minus Rs 10,00,000)	4% of income tax

No change in income tax slabs for individuals.

There are no separate slab for male and female.

• Surcharge:

·         10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.

·         15% surcharge on income tax if the total income exceeds Rs.1 Cr.

                        Health and Education cess : 4% cess on income tax including surcharge. This Health and Education Cess replaced the earlier 2% Education Cess and 1% Secondary and Higher Education Cess from Budget 2018.

From FY 2018-19, a standard deduction of Rs 40,000 in lieu of travel, medical expense reimbursement and other allowances has been proposed for salaried employees and pensioners. To claim this standard deduction, there is no need to submit medical bills to your employer.

transport allowance (Rs 19,200 per annum) and medical reimbursement of Rs 15,000 has been abolished.

10% Long Term Capital Gains Tax on Equity and Equity based Mutual Funds introduced.

If taxpayers – individual or corporate – forget to file their income tax returns by the due date, they will not be allowed to claim tax breaks on investments, children’s school fees and medical insurance premiums under the grab-all Section 80.