Here are the latest income tax slabs and rates

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These are the latest income tax slabs applicable to individuals.

Highlights

  • Budget 2018 only increased total cess on income tax to 4% but made no change in the existing tax slabs and income tax rates.
  • The basic exemption limit for an individual depends on his/her age as well as his/her residential status.
Given below are the latest income tax slabs applicable for financial year 2018-19 (assessment year 2019-20). These will be applicable for FY 2019-20 as well.

The basic exemption limit for an individual depends on their age and residential status. According to age, resident individual taxpayers are divided into three categories:
1. Resident individuals below the age of 60 years
2. Resident senior citizens of age between 60 years and above but below 80 years

3. Resident super senior citizens of above 80 years of age

Given below are the tables for latest income tax slabs for FY 2018-19 and FY 2019-20.

Income tax slabs for resident individual below 60 years of age
Taxable income slabsIncome tax rates and cess
Up to Rs 2.5 lakhNil
Rs 2,50,001 to Rs 5,00,0005% of (Total income minus Rs 2,50,000) + 4% cess
Rs 5,00,001 to Rs 10,00,000Rs 12,500 + 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and aboveRs 1,12,500 + 30% of (Total income minus Rs 10,00,000) + 4% cess

Income tax slabs for resident individual between 60 and 80 years of age (Senior Citizen)
Taxable income slabsIncome tax rates and cess
Up to Rs 3 lakhNil
Rs 3,00,001 to Rs 5,00,0005% of (Total income minus Rs 3,00,000) + 4% cess
Rs 5,00,001 to Rs 10,00,000Rs 10,000 + 20% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and aboveRs 1,10,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess

Income tax slabs for resident individual above 80 years of age (Super Senior Citizen)
Taxable income slabsIncome tax rates and cess
Up to Rs 5 lakhNil
Rs 5,00,001 to Rs 10,00,00020% of (Total income minus Rs 5,00,000) + 4% cess
Rs 10,00,001 and aboveRs 1,00,000 + 30% of (Total income minus Rs 10,00,000) + 4% cess

As per the Budget 2019 announcement, no changes in the income tax slabs and rates have been proposed. A rebate of Rs 12,500 will be available for all taxpayers with taxable income up to Rs 5 lakh. This rebate will be available under Section 87A of the Income Tax Act. Also, standard deduction for financial year 2019-20 would be Rs 50,000.

For the FY 2019-20, new surcharge rates have been introduced for the super rich.

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Surcharges to be levied for FY 2019-20:
Taxable Income Surcharge (%)
Income above Rs 50 lakh but below Rs 1 crore 10
Income above Rs 1 crore but below Rs 2 crore 15
Income above Rs 2 crore but below 5 crore 25
Income above Rs 5 crore 37

For non-resident individuals (NRI), the basic exemption limit is of Rs 2.5 lakh in a financial year irrespective of their age. Surcharge as mentioned in the table above will be levied on the taxable income.

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In Budget 2018, cess on income tax was increased to 4 per cent for FY 2018-19 onwards from 3 per cent for FY 2017-18 across the board for taxpayers. Due to the hike in cess, the tax liability for the highest slab (assuming an income of Rs 15 lakh) has increased by Rs 2,625. In the middle income tax slab, the tax outgo increases by Rs 1,125, and there is a nominal increase in the tax liability of Rs 125 for lowest income tax slab.

Here's how much your income tax liability will be:

Post-Budget-Tax1

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Post-Budget-Tax3

Click here to use our Income Tax Calculator

As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income up to Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 20 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh.

For senior citizens (aged 60 years or above but less than 80 years), income up to Rs 3 lakh is exempt from tax. Income from Rs 300,001 to Rs 5 lakh is taxed at 5 per cent, from Rs 500,001 to Rs 10 lakh at 20 per cent and above Rs 10 lakh at 30 per cent.

For super senior citizens, aged 80 years and above, income up to Rs 5 lakh is exempt from tax. Income from Rs 500,001 to Rs 10 lakh is taxed at 20 per cent and above Rs 10 lakh is taxed at 30 per cent.

Income tax slabs for FY 2017-18
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After taking the deductions under Section 80 (C) to 80 (U), the tax is payable after adding the cess and surcharge, if applicable.
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