Income Tax Slabs 2018-19: A Look At How Your Annual Income is Taxed Currently Ahead of Union Budget 2019-20
Ahead of the Union Budget 2019-20, check out current income tax slabs and rates for the financial year 2018-19 (assessment year 2019-20).
Mumbai, June 28: The Bharatiya Janata Party-led NDA government will unveil the Union Budget on July 5 for the financial year ending March 2020. The Union Budget will be presented by Finance Minister Nirmala Sitharaman. On February 1, then Finance Minister Piyush Goyal had presented the interim Budget and announced a full tax rebate for individuals earning up to Rs 5 lakh annually. Goyal, however, left income tax slabs and rates for the FY 2019-20 untouched.
Those earning Rs 5 lakh per annum will, however, be required to file tax returns even if they have zero tax liability. There is a huge expectation from the new Finance Minister of an increase in the basic income tax exemption limit from existing Rs 2.50 lakh to Rs 5 lakh. In the upcoming Union Budget, the Modi 2.0 government may tweak the existing income tax slabs in a way that a 10 per cent tax rate applies to those earning up to Rs 10 lakh, instead of the existing 20 per cent. Budget 2019-20: FM Nirmala Sitharaman Holds Pre-Budget Meeting With Finance Ministers of All States.
Current Income Tax Slabs And Rates:
| Income Slabs (Individual below 60 years of age) | Tax Rates | Income Slabs (resident & above 60 years but below 80 years) | Tax Rates | Income Slabs (resident & above 80 years) | Tax Rates |
| Total income up to Rs. 2.5 Lac | NIL | Total income up to Rs. 3.00 Lac | NIL | NA | NA |
| Total income exceeds Rs. 2.5 Lac but less than Rs.5 Lac | 5% on amount exceeding Rs. 2.5 Lac | Total income exceeds Rs. 3 Lac but less than Rs.5 Lac | 10% on amount exceeding Rs. 3.00 Lac | Total income up to Rs. 5 Lac | NIL |
| Total income exceeds Rs. 5 Lac but less than Rs.10 Lac | 20% on Income exceeding Rs. 5 Lac + Rs. 25,000 | Total income exceeds Rs. 5 Lac but less than Rs.10 Lac | 20% on Income exceeding Rs. 5 Lac + Rs. 20,000 | Total income exceeds Rs. 5 Lac but less than Rs.10 Lac | 20% on Income exceeding Rs. 5 Lac |
| Total income more than Rs. 10 Lac | 30% on Income exceeding Rs. 10 Lac + Rs. 1,25,000 | Total income more than Rs. 10 Lac | 30% on Income exceeding Rs. 10 Lac + Rs. 1,20,000 | Total income more than Rs. 10 Lac | 30% on Income exceeding Rs. 10 Lac + Rs. 1 Lac |
Since the government, in the Interim Budget, has announced a full tax rebate (Rs 12,500) to individuals having a net taxable income upto Rs 5 lacs, they can claim the tax rebate under 87A and thus effectively pay zero tax. These income tax slabs are applicable for the financial year 2018-19 (assessment year 2019-20). These will be applicable for FY 2019-20 as well if the government doesn't make any changes.
(The above story first appeared on LatestLY on Jun 28, 2019 05:34 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).