financial services

Rates for Income Tax Calculator in 2018

So, you want to know how your tax calculations were affected in 2018? Shown in this post is a handy chart giving rates for Income Tax calculator in 2018.
Finance Minister Arun Jaitley left income tax brackets left unchanged in the last Union Budget so the rates for your income tax calculator in 2018 gets modified by factors other than slab percentages. Given below are the tax slabs applicable for 2018.

·         Rates of income-tax for those under 60 years of age
(1) where the total income does not exceed Rs. 2,50,000 Nil
(2) where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 5%
(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20%
(4) where the total income exceeds Rs. 10,00,000 30%
·         Rates of income-tax for Senior Citizens between 60 and 80 years
(1) where the total income does not exceed Rs. 3,00,000 Nil
(2) where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 5%
(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20%
(4) where the total income exceeds Rs. 10,00,000 30%
Rates of income-tax for Senior Citizens over 80 years
where the total income does not exceed Rs. 3,00,000 Nil
where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 Nil
where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20%
where the total income exceeds Rs. 10,00,000 30%
Surcharge for Individuals or HUFs:
If Annual Income > 50 lakh but < 1 crore 10% of Income tax
If Annual Income > 1 crore 15% of income tax
*In both cases above, the income tax + surcharge cannot be more than the difference between the yearly income and the the minimum limit for this portion.

 

Cess calculated on Income Tax + Surcharge
Education Cess 4% of Income tax + Surcharge
**These cesses are applicable to all taxpayers

 

There is a standard deduction of Rupees 40,000 from gross income from AY 2018-19.

Sample calculations for income tax for particular cases will be shown in a later post.

Finally, deduct a rebate of Rupees 2,500 under Section 87A if your income is less than Rupees 3,50,000 a year but greater than Rupees 2,50,000.

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