Union Budget, 2018: Tax Rates for the AY 2019-20

Union Budget, 2018: Tax Rates for the AY 2019-20

 

The Finance Minister, Mr. Arun Jaitley, presented the Union Budget for the year 2018. It is the last full budget presented by him before the general election to be held next year in 2019. In contrast to the expectations, the proposals in personal taxation are not lucrative. Nothing extraordinary has been proposed for individual taxpayers.

There is no change in the maximum exemption limit which is not chargeable to income-tax. Moreover, the rates of tax have been kept unchanged. The "Education Cess" and "Secondary and Higher Education Cess" is proposed to be replaced by a new cess named "Health and Education Cess" which will be chargeable at the rate of 4% of income-tax and surcharge.

The proposed tax rates for the next financial year 2018-19 are given in following tables.

Tax Rate* for an individual for the A.Y. 2019-20
Income		Rates of Income-tax
		Individual (Age less than 60 Years)	Senior Citizen (Age above 60 Years)	Super Senior Citizen (Age above 80 Years)
1	Up to Rs. 2,50,000	Nil	Nil	Nil
2	Rs. 2,50,000 to Rs. 3,00,000	5%	Nil	Nil
3	Rs. 3,00,000 to Rs. 5,00,000	5%	5%	Nil
4	Rs. 5,00,000 to Rs. 10,00,000	20%	20%	20%
5	Above Rs. 10,00,000	30%	30%	30%

*The above rates are exclusive of surcharge and cess.

A resident individual, whose taxable income does not exceed Rs. 3, 50,000, can claim a tax rebate under section 87A. The amount of rebate shall be lower of 100% of income-tax or Rs. 2,500.

Rates of Surcharge:

Rates of Surcharge
Particulars		Taxable Income
		50 Lacs to 1 Crore	1 Crore to 10 Crores	Exceeding 10 Crores
1.	Individuals/HUF	10%	15%	15%