Budget 2018: How Much Income Tax You Have To Pay In 2018-19

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 education cess from 3 per cent to 4 per cent for individual taxpayers. Here's how these tax changes will impact your tax liabilitygoing 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	NA
Net Taxable Income	1165800	1160000
Income Tax	167,107	168729.6
Additional Tax		1,623
Scenario -4
Taxable Income	1600000	1600000
Standard Deduction		40000
Medical Reimbursement & Transport Allowance	34200
Net Taxable Income	1565800	1560000
Income Tax	290,707	293529
Additional Tax		2,822
Source: Taxmann