Latest Income Tax Slab Rates FY 2018-19 (AY 2019-20)

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What are the Latest Income Tax Slab Rates FY 2018-19 (AY 2019-20) after the Budget 2018? Is there any changes to applicable tax rates for individuals? Let us see the details.



In this post, my concentration is to share you about the latest Income Tax Slab Rates for FY 2018-19 (AY 2019-20) and applicable Security Transaction Tax (STT).

The difference between Gross Income and Total Income or Taxable Income?

Before jumping into Latest Income Tax Slab Rates FY 2018-19 (AY 2019-20), first understand the difference between Gross Income and Total Income.

Many of us have the confusion of understanding what is Gross Income and what is Total Income or Taxable Income. Also, we calculate the income tax on Gross Income. This is completely wrong. The income tax will be chargeable on Total Income. Hence, it is very much important to understand the difference.

Gross Total Income means total income under the heads of Salaries, Income from house property, Profits and gains of business or profession, Capital Gains or income from other sources before making any deductions under Sections.80C to 80U.

Total Income or Taxable Income means Gross Total Income reduced by the amount of permissible as deductions under Sec.80C to 80U.



Therefore your Total Income or Taxable Income will always be less than the Gross Total Income.

Latest Income Tax Slab Rates FY 2018-19 (AY 2019-20)

There are three categories of individuals based on the age of taxpayer.

      1. Individuals whose age below 60 years.
      2. Senior Citizens whose age is 60 years and above but less than 80 years.
      3. Super Senior Citizens whose age is 80 years and above.

Hence, based on these three categories of individuals I have separated them and Latest Income Tax Slab Rates for FY 2018-19 (AY 2019-20) are as below.

Note: – Along with the applicable taxes, you have to additional surcharges at below rates.

      • 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.



How to calculate Income Tax on your net or total income?

Now we understood the Latest Income Tax Slab Rates for FY 2018-19 (AY 2019-20). However, how to calculate the tax on our total income and how much is the tax benefits from Budget 2017 changes?

Let us not take few examples and calculate the income tax amount.

# If you are under 30% Tax Slab and below 60 years of age

Let us say your next taxable income (after all deductions like Sec.80C and all) Rs.15,00,000.

Up to Rs.2,50,000-NIL

Rs.2,50,001 to Rs.5,00,000-Rs.12,500  @5% (Earlier it used to be Rs.25,000).

Rs.5,00,001 to Rs.10,00,000-Rs.1,00,000 @20%

Rs.10,00,001 and above (in this case Rs.15,00,000)=Rs.1,50,000 @30%.

So total tax will be Rs.12,500+Rs.1,00,000+Rs.1,50,000=Rs.2,62,500.

# If you are under 20% Tax Slab and below 60 years of age

Let us say your next taxable income (after all deductions like Sec.80C and all) Rs.7,00,000.



Up to Rs.2,50,000-NIL

Rs.2,50,001 to Rs.5,00,000-Rs.12,500 @5% (Earlier it used to be Rs.25,000).

Rs.5,00,001 to Rs.7,00,000=Rs.40,000 @20%

Therefore, the total tax will be Rs.12,500+Rs.40,000=Rs.52,500.

# If you are under 10% Tax Slab and below 60 years of age

a) Let us say your income is Rs.4,00,000

Up to Rs.2,50,000-NIL

Rs.2,50,001 to Rs.4,00,000-Rs.7,500 @5% (Earlier it used to be Rs.15,000).

b) Let us say your income is Rs.3,00,000

Up to Rs.2,50,000-NIL

Rs.2,50,001 to Rs.3,00,000=Rs.2,500.

However, using Sec.87A of IT Act, your tax liability will be ZERO.



An individual who is resident Indian and whose total income does not exceed Rs. 3,50,000 is entitled to claim rebate under section 87A.

HUF or NRIs are not eligible for this rebate. Also, do remember that this rebate is not available for super senior citizens. Earlier the rebate was Rs.5,000 for those whose income is up to Rs.5,00,000. However, from FY 2017-18 it is now reduced to Rs.2,500 and income range to Rs.3,50,000.

Rs.3,00,000 net income falls under the eligibility of Sec.87A. Therefore, if one claims rebate under this section, then the total income tax payable will be ZERO.

Security Transaction Tax (STT) for FY 2018-19 (AY 2019-20)

Security Transaction Charges or STT is the charges or tax when you buy or sell securities (excluding commodities and currency) through a recognized stock exchange.

The definition of securities involves the below products.

        • Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate;
        • Derivatives;
        • units or any other instrument issued by any collective investment scheme to the investors in such schemes;
        • Security receipt as defined in section 2(zg) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002;
        • Government securities of equity nature;
        • Rights or interest in securities;
        • Equity-oriented mutual funds



Therefore, whenever you buy and sell these securities through a recognized stock exchange, then you have to pay this STT.

Now let us understand the latest Security Transaction Tax (STT) applicable for FY 2018-19 (AY 2019-20).



Hope now you became familiar with Latest Income Tax Slab Rates for FY 2018-19 (AY 2019-20) and also the way we can calculate our income tax liability (in simple terms). Any doubts??

5 COMMENTS

  1. Timely given information which is apt, lucid and clear with working examples etc. Thanks. Pl.inform how to claim the benefit under Sec.87A – can be availed ‘at source of deduction’ or one should file IT Return and claim refund and get?

  2. pension is not an income. It paid in lieu of the services rendered out of the fund already deducted and taxed. Then why it is taxable?

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