This Article is From Feb 02, 2018

Budget 2018: How Much Income Tax You Have To Pay In 2018-19

In Budget 2018-19, Finance Minister Arun Jaitley announced a standard deduction of Rs 40,000 in place of exemptions allowed for medical reimbursement (Rs 15,000) and transport allowance (Rs 19,200).

Budget 2018: How Much Income Tax You Have To Pay In 2018-19

According to Budget 2018-19, education cess is raised from 3% to 4 per cent for individual taxpayers

Highlights

  • Government did not change personal income tax rates in Budget 2018
  • Finance Minister Arun Jaitley announced standard deduction of Rs 40,000
  • Education cess to be hiked to 4% from 3% for individual taxpayers
Finance Minister Arun Jaitley in Budget 2018 did not change personal income tax rates. Nor did he change income tax slabs. However, he announced a standard deduction of Rs 40,000 in place of exemptions allowed for medical reimbursement (Rs 15,000) and transport allowance (Rs 19,200). The finance minister also raised cess on income tax from 3 per cent to 4 per cent for individual taxpayers. Here's how these tax changes will impact your tax liability going forward in 2018-19 (Assessment Year 2019-20), if you are a salaried employee below 60 years.
 
 For FY 2017-18For FY 2018-19
Scenario - 1 (In Rs)  
Taxable Income 400000400000
Standard Deduction 40000
Medical Reimbursement & Transport Allowance 34200 
Net Taxable Income365800360000
Income Tax5,9645720
Savings  244
   
   
Scenario - 2  
Taxable Income800000800000
Standard Deduction 40000
Medical Reimbursement & Transport Allowance 34200 
Net Taxable Income765800760000
Income Tax67,63067080
Savings  550
   
   
Scenario - 3  
Taxable Income12000001200000
Standard Deduction 40000
Medical Reimbursement & Transport Allowance 34200 
Net Taxable Income11658001160000
Income Tax167,107166,920
Savings 187
   
   
Scenario -4  
Taxable Income16000001600000
Standard Deduction 40000
Medical Reimbursement & Transport Allowance 34200 
Net Taxable Income15658001560000
Income Tax290,707291720
Additional Tax 1,013