Tax Rates for Individuals – Budget 2018

Strawberries

There are only few hours left to come out the budget 2018 a realty. We have made a most reliable expectations from this budget for Income tax rates applicability on Individuals. Mr Jaitly as committed in his first budget to increase the exemption limit to Rs. 5 lacs. This limit will be enhanced in balanced way i.e. increase in direct limit to certain extent and through tax saving plans under section 80C. The most awaited outcome is still to come but realty will be near around the below rates.

Tax Rates: Income Tax Slab For AY 2019-20
1. Income Tax Slab Rate for AY 2019-20 for Individuals:
1.1 Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:
Taxable income Tax Rate
Up to Rs. 3,00,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
1.2 Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:
Taxable income Tax Rate
Up to Rs. 4,00,000 Nil
Rs. 3,00,000 – Rs. 5,00,000 5%
Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
1.3 Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:
Taxable income Tax Rate
Up to Rs. 5,00,000 Nil
Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
Plus:
Surcharge: 10% of tax where total income exceeds Rs. 50 lakh
                 15% of tax where total income exceeds Rs. 1 crore
                 20% of tax where total income exceeds Rs. 10 crore
Education cess: 3% of tax plus surcharge
In addition to above deduction u/s 80C to be increased to Rs. 250000

This budget is expected to increase tax savings apprx Rs. 20000/- to each taxpayer and on other hand is expected to give a burden on ultra rich people by charging higher surcharge. This approach will bring a balance to exchequer.

Disclaimer: These outcomes are based on the expectations and research of the writer. Though it may be most appropriate outcome but it should be only considered as an view.

About Nitika Bansal 124 Articles
I will regularly provide update on direct tax and indirect tax