Income Tax calculation is also calculated in our product which is based on the latest Income Tax Slab declared for the financial year. Income tax calculation is a backend process which can not be viewed by the user but the user can see the effect in the payroll module.
Income Tax Slab For FY 2018-19
The new and revised income tax slabs and rates applicable for the financial year (FY) 2018-19 and assessment year (AY) 2019-20 are mentioned below:
Common People:
Income Slab---------------------------------------------------------------------------------Tax Rates
Up to Rs 2,50,000--------------------------------------------------------------------No tax / exempt
2,50,001 to 5,00,000------------------------------------------------------------------5% of (Total income- 2,50,000)
5,00,001 to 10,00,000-----------------------------------------------------------------12500+20% of (Total income ?Çô Rs. 5,00,000).
Above 10,00,000----------------------------------------------------------------------1,12,500+30% of (Total income -Rs. 10,00,000)
Resident Senior Citizens above 80 years:
Income Slab---------------------------------------------------------------------------------Tax Rates
Up to Rs 5,00,000--------------------------------------------------------------------No tax / exempt
5,00,001 to 10,00,000-----------------------------------------------------------------20% of (Total income-Rs 5,00,000)
Above 10,00,000----------------------------------------------------------------------Rs. 100,000/- + 30% of (Total income -Rs. 10,00,000)
Resident Senior Citizens above 60 years:
Income Slab---------------------------------------------------------------------------------Tax Rates
Up to Rs 3,00,000---------------------------------------------------------------------No tax / exempt
3,00,001 to 5,00,000------------------------------------------------------------------5% of (Total income- 3,00,000)
5,00,001 to 10,00,000-----------------------------------------------------------------Rs. 10,000/- + 20% of (Total income- Rs. 5,00,000)
Above 10,00,000----------------------------------------------------------------------Rs. 1,10,000/- + 30% of (Total income ?Çô Rs. 10,00,000)
Tax Credit: Rs. 2,500 for every person whose income doesn?ÇÖt exceed Rs. 3,50,000
Surcharge on Income Tax: 10% of the Income Tax payable, in case the total taxable income exceeds Rs.50, 000,000 to Rs 1 crore and @15% for taxable income >1 crore. The surcharge shall not exceed the amount of income that exceeds Rs.1 crore.
Education Cess: 4% of Total Income Tax plus surcharge.