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).

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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

  1. Government did not change personal income tax rates in Budget 2018
  2. Finance Minister Arun Jaitley announced standard deduction of Rs 40,000
  3. 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
   
   
   

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