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).

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 budget 2018 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 2017-18	For FY 2018-19
Scenario – 1 (In Rs.)
Taxable Income	400000	400000
Standard Deduction		40000
Medical Reimbursement & Transport Allowance	34200
Net Taxable Income	365800	360000
Income Tax	5,964	5720
Savings		244
Scenario – 2
Taxable Income	800000	800000
Standard Deduction		40000
Medical Reimbursement & Transport Allowance	34200
Net Taxable Income	765800	760000
Income Tax	67,630	67080
Savings		550
Scenario – 3
Taxable Income	1200000	1200000
Standard Deduction		40000
Medical Reimbursement & Transport Allowance	34200
Net Taxable Income	1165800	1160000
Income Tax	167,107	166,920
Savings		187
Scenario -4
Taxable Income	1600000	1600000
Standard Deduction		40000
Medical Reimbursement & Transport Allowance	34200
Net Taxable Income	1565800	1560000
Income Tax	290,707	291720
Additional Tax		1,013