• Income Tax Slab for FY 2018-19 And AY 2019-20

    Income Tax Slabs For Financial Year 2018 - 2019

    Income Tax is a type of tax that is levied by the government on an individual’s earning/salary. The government uses the collected tax money to improve infrastructure, defense and various other purposes including the development of the country. The income tax is counted as a stable source of income for the government to facilitate a diverse range of services to the people of the nation. The income tax is also used for paying government employees their salary.

    Union Budget 2018
    Budget 2108

    Calculation of Income Tax

    The income tax is calculated differently for individuals based on various factors such as the type of income, amount of income, age, etc. In order to calculate the income tax from salary, an individual will require declaring the total amount of earning and the total amount of deductions. The government allows the individual to draw exemption on particular types of investment.

    Income tax slabs for Financial Year 2018 - 2019

    For salaried individuals, no changes have been made to the income tax rates proposed in 2017. However, the 3% Education Cess from the previous year has been replaced with a 4% “Health and Education Cess”. Furthermore, a standard deduction of Rs 40,000 has been introduced for all salaried individuals for transportation or medical reimbursement purposes.

    The following income tax slab will help you in calculating your taxable income for all types of income slabs.

    Budget 2108

    Tax applicable for individuals below 60 years

    Annual Income Tax Rates Health and Education Cess
    Up to Rs.2,50,000 Nil Nil
    Rs.2,50,001-Rs.5,00,000 5% 4% of income tax
    Rs.5,00,001-Rs.10,00,000 Rs.12,500 + 20% 4% of income tax
    Above Rs.10,00,000 Rs.1,12,500 + 30% 4% of income tax

    Tax applicable for individuals over 60 years and under 80 years

    Annual Income Tax Rates Health and Education Cess
    Up to Rs.3,00,000 Nil Nil
    Rs.3,00,001-Rs.5,00,000 5% 4% of income tax
    Rs.5,00,001-Rs.10,00,000 Rs.10,000 + 20% 4% of income tax
    Above Rs.10,00,000 Rs.1,10,000 + 30% 4% of income tax

    Tax applicable for individuals over 80 years and above

    Annual Income Tax Rates Health and Education Cess
    Up to Rs.5,00,000 Nil Nil
    Rs.5,00,001-Rs.10,00,000 20% 4% of income tax
    Above Rs.10,00,000 Rs.1,12,500 Rs.1,00,000 + 30% 4% of income tax

    TDS should be deducted at applicable rates as above along with surcharge and Health and Education Cess.

    Income tax slabs for Financial Year 2015 - 2016

    Tax applicable for men below 60 years

    Annual Income Rate
    Income up to Rs.2,50,000 Nil
    Income between Rs.2,50,001 - Rs.500,000 10% of Income exceeding Rs 2,50,000
    Income between Rs.500,001 - Rs.10,00,000 20% of Income exceeding Rs 5,00,000
    Income above Rs.10,00,000 30% of Income exceeding Rs.10,00,000

    Tax applicable for women below 60 years

    Annual Income Rate
    Income up to Rs.2,50,000 Nil
    Income between Rs.2,50,001 - Rs.500,000 10% of Income exceeding Rs.2,50,000
    Income between Rs.500,001 - Rs.10,00,000 20% of Income exceeding Rs.5,00,000
    Income above Rs.10,00,000 30% of Income exceeding Rs.10,00,000

    Tax applicable for Senior Citizens (Age 60 years or more but less than 80 years)

    Annual Income Rate
    Income up to Rs.3,00,000 Nil
    Income between Rs.3,00,001 - Rs.500,000 10% of Income exceeding Rs.3,00,000
    Income between Rs.500,001 - Rs.10,00,000 20% of Income exceeding Rs.5,00,000
    Income above Rs.10,00,000 30% of Income exceeding Rs.10,00,000

    Tax applicable for Senior Citizens (Age 80 years or more)

    Annual Income Rate
    Income upto Rs.5,00,000 Nil
    Income between Rs.500,001 - Rs.10,00,000 20% of Income exceeding Rs.5,00,000
    Income above Rs.10,00,000 30% of Income exceeding Rs.10,00,000

    The income tax slabs are proposed in the Union Budget, upon implementation, a taxpayer is expected to accurately file their income and deductions. The taxpayer can also file their income tax return in order to receive the refund for excess tax paid to the government. Recently, the Income Tax (IT) department has observed an increase in the number of people filing their taxes on time.

    News About Income Tax Slabs

    • Bombay HC Urges Govt to Take Corrective Measures on GST

      Bombay High Court Justices Bharati Dangre and SC Dharmadhikari recently stated that the Goods and Services Tax (GST) was not a tax-friendly initiative and that its popularity is because of the amount of publicity that surrounded it. They further elaborated that celebrating the success of the GST did not mean much since obtaining access to the portals and websites have proved to be very cumbersome.

      The issue of accessibility of the GDST portals was brought to light during the hearing for a petition filed by Abicor and Benzel Technoweld Pvt Ltd. The organisation stated that their operations were stalled because they were unable to file returns on the GST website, thereby halting the movement of their goods. They stated that the automated filing system for GST, while established, was still inaccessible. The Bombay High Court confirmed that this was not the first instance of manufacturers encountering trouble while accessing the GST portals.

      15 February 2018

    • FM Arun Jaitley: "Optimum Resource Utilisation will Bolster India's Economic Growth"

      Regarding the GST postponement move as a “charter to anarchy”, Finance Minister Arun Jaitley stated that the suggestion to postpone the launch of GST was a sheer act of chartering to prevailing anarchy.

      With respect to Congress and its existing operations, the Finance Minister further stated that the opposition brought in a wave of problems in the sectors of agriculture and job creation. Countering the opposition even further, he went on to say that Congress had no substantial role to play in boosting the country’s economy as there were minimal or no structural reforms between the years 2003 and 2013.

      Arun Jaitley also said that the opposition lagged hugely in the domains of municipalities and land acquisitions and in conclusion said that India holds huge potential for economic growth only if resources are utilised in an appropriate manner.

      9 February 2018

    • Six Months After GST, Maharashtra Sees Almost 29% Increase In Indirect Tax

      Between July and December of 2017, Maharashtra saw a 28.6% increase in revenues from gross indirect taxes. Maharashtra is the highest in terms of revenue collection across the country since the GST was established in July 2017. According to the data collected, October 2017 saw the highest increase of 51%. This has resulted in an increase of Rs 12, 650 crore.

      However, of this amount, a minimum of Rs 1,000 crore would be deducted toward refunding dealers for SGST. In addition, nearly Rs 13,000 crore would have to be paid as compensation to various municipal bodies for taxes that were discarded and replaced by the GST. There is also lack of clarity in terms of the settlement the state would receive as part of the Integrated GST for goods and services procured from other states.

      Rajiv Jalota, the state’s GST commissioner has stated Maharashtra's high GST collection is because it is the core of the manufacturing and service sector. Moreover, the state also consumes a large quantity of high-value white goods. Regardless of Maharashtra's GST collection, the state is Rs 2,518 crore short when compared to the 14% growth target set by the centre.

      The GST has replaced a number of indirect taxes across the country. However, professional tax and VAT on petrol and alcohol have been retained.

      8 February 2018

    • Returns to Undergo E-assessment for Team-Based Income Tax

      From 1 April onwards, team-based income taxes are believed to undergo a higher scrutiny to establish accountability and transparency in the system in order to determine the total payable tax and refunds that a particular assessee is generally issued.

      In order to improve the efficacy in the way taxes are administered in India, the Union Budget of 2018 introduced a new strategy for advanced tax scrutinisation.

      In the year 2017, a pilot project for e-assessment of taxes was launched and was spread out to 102 cities. This move came with an objective of minimising the interface that exists between the taxpayers and the department officials.

      In his speech, the Finance Minister, Arun Jaitley announced that the new stratagem is ready to roll out this year, hit the market and revolutionise the current procedure of tax assessment.

      7 February 2018

    • GST Compensation From Centre to States For FY 2019-20 Estimated at Rs.900 Billion

      Rs.900 billion has been set aside as the budget by the government so that states can be compensated for the losses they make due to the Goods and Services Tax. The budget set aside for FY 2017-18 was Rs.613 billion, which makes the budget for 2018-19 a whopping 47% more than the current FY. The budget size for FY 2018-19 was set at Rs.24.4 trillion, and the compensation amount to 3.6% of that amount. The compensation cess outlay for FY 2019-20 as well as 2020-21 is also projected at Rs.900 billion each.

      7 February 2018

    • Indirect Taxes – Budget 2018

      A number of products have seen an increase in customs duty after Arun Jaitley, the Finance Minister of India, introduced the budget on February 1. The reason for doing is that the government intends on promoting products made in India and decrease exports from other countries. Increasing the customs duty is expected to contribute towards garnering indirect taxes. Since collections under the Goods and Services Tax have reduced, there has been pressure on indirect tax revenues. Although Mr Jaitley did not cover the legislative changes needed in the Central Goods and Services Tax Act and the Integrated Goods and Services Tax Act, increasing the rate of customs duty is expected to help in collecting more revenues, and this would in turn help in offsetting the decrease in GST revenues. The second part of the present session in the Parliament is expected to cover the legislative changes needed under the new tax regime.

      6 February 2018

    • GST Reduction on Phosphoric Acid to Benefit Fertiliser Firms

      The Goods and Services Tax was recently revised for fertiliser-grade phosphoric acid. The revision saw the rate brought down to 12% from the initially applicable 18%. The move is expected to benefit manufacturers of fertilisers in the sense that the input tax credits will be lower, which in turn will mean that working-capital blockage will be lower too, according ICRA (Investment Information and Credit Rating Agency of India Limited).

      The GST meeting held last week saw the GST Council lower the tax rate after the industry made demands to lower the GST rates applicable to raw materials required for producing complexes (fertilisers) and di-ammonium phosphate.

      30 January 2018

    • Rates of Over 80 Items Reduced By GST Council

      The Goods and Services Tax, implemented in July 2017, has been undergoing changes from time to time, and the most recent revamp of items will come in to effect on January 25 this year. The GST Council, which is the main decision-making body, approved a revamp in the tax rates applicable to 29 goods and 53 services. The items which will see a slash in rates include packaged drinking water, precious stones, tailoring services, biodiesel, amusement parts, etc. The overall loss in revenue due to these changes is estimated to be between Rs.1,000 crore and Rs.1,200 crore.

      29 January 2018

    • Tax Evasion and Black Money will Be Severely Penalised

      ingent rules and norms state that henceforth any crime related to black money, wilful tax evasion, delayed tax payment and filing of return, will be prosecuted immediately. The penalty might include imprisonment, depending on the gravity of the crime committed.

      tax department started extensive monitoring and scrutinisation to detect cases of tax evasion, black money and so on. A press release by CBDT (Central Board of Direct Taxes) stated that the Income Tax Department has increased its prosecution of tax evaders and also reported that more than 50 people have already been penalised for multiple cases of fraud.

      ides tax evasion and black money, a person may also have to bear the brunt of not filing their tax returns on time.

      25 January 2018

    • Officials Finalise Major Changes in GST Rule Hitherto GST Council Meet-Up

      Major key features under the Goods and Services Tax (GST) have undergone careful scrutinization by Government officials. These features include TDS (tax deducted at source), TCS (tax collected at source), RCM (reverse charge mechanism) and so on. Vital and obligatory recommendations are being critically examined to make the GST rule simpler for the folks of the country.

      The committee for law review, which consists of senior officers from States and the Center, met on 5 January 2018 to draw a conclusion on the recommendations.

      A group of officials from the Finance Ministry are expected to further review these modifications before they are finally divulged in front of the GST Council.

      24 January 2018

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