Quick Answer · Historical
For FY 2018-19 (AY 2019-20), income tax slabs for individuals below 60 were nil up to Rs2.5 lakh, 5% from Rs2.5L to Rs5L, 20% from Rs5L to Rs10L and 30% above Rs10L. Budget 2018 introduced a Rs40,000 standard deduction and raised the cess from 3% to 4%. There was only one regime — the current new/old choice did not exist yet.
Up to Rs2.5L Nil
Rs2.5L–Rs5L 5%
Rs5L–Rs10L 20%
Above Rs10L 30%
This is a historical page (AY 2019-20)
These rates apply only to FY 2018-19 and are kept for reference and back-year filings. For the current year (FY 2025-26 / AY 2026-27) the new regime is the default, with nil tax up to Rs12 lakh taxable income after the Section 87A rebate. See the current-year guide at /income-tax-slabs.
At a glance
Slab Rates — Individuals Below 60 (FY 2018-19)
The slabs for resident individuals under 60 and for non-resident individuals (NRIs) of any age were identical for AY 2019-20.
| Income Range | Tax Rate | Tax on this Slab |
|---|---|---|
| Up to Rs2,50,000 | Nil | — |
| Rs2,50,001 – Rs5,00,000 | 5% | Up to Rs12,500 |
| Rs5,00,001 – Rs10,00,000 | 20% | Up to Rs1,00,000 |
| Above Rs10,00,000 | 30% | On amount above Rs10L |
Add: Health & Education Cess @ 4% on total tax. Surcharge: 10% if income Rs50L–Rs1Cr; 15% above Rs1Cr. Historical — Finance Act 2018.
Higher exemptions
Senior & Super-Senior Citizen Slabs
Resident senior citizens (60–79) and super-senior citizens (80+) got a higher basic exemption. NRIs did not get these higher limits or the Section 87A rebate.
| Income Range | Senior (60–79) | Super-Senior (80+) |
|---|---|---|
| Up to Rs2,50,000 | Nil | Nil |
| Rs2,50,001 – Rs3,00,000 | Nil | Nil |
| Rs3,00,001 – Rs5,00,000 | 5% | Nil |
| Rs5,00,001 – Rs10,00,000 | 20% | 20% |
| Above Rs10,00,000 | 30% | 30% |
Senior basic exemption Rs3L; super-senior Rs5L. Cess 4% on total tax.
Need to file a return for a senior citizen or an earlier year?
Talk to a Tax Expert →What changed
Key Changes in Budget 2018 (Finance Act 2018)
- Standard deduction of Rs40,000 reintroduced for salaried employees and pensioners, replacing the transport allowance (Rs19,200) and medical reimbursement (Rs15,000) exemptions — a net new benefit of about Rs5,800. Raised to Rs50,000 from FY 2019-20.
- Health & Education Cess raised from 3% to 4% on income tax plus surcharge, and renamed. On a base tax of Rs1,00,000 the cess rose from Rs3,000 to Rs4,000.
- Section 87A rebate of Rs2,500 for total income up to Rs3,50,000 — down from the earlier Rs5,000 (up to Rs5L). NRIs were not eligible.
- LTCG on equity reintroduced: 10% on long-term gains above Rs1 lakh on listed equity shares and equity mutual funds, with grandfathering of gains up to 31 January 2018.
Standard deduction did not lower most tax bills much
Because the Rs40,000 standard deduction replaced roughly Rs34,200 of existing transport and medical exemptions, the net additional benefit was only about Rs5,800 for a typical salaried employee — and the 1% higher cess partly offset it.
Worked example
Tax on Rs8 Lakh Salary — FY 2018-19
Taxable income
Gross salaryRs8,00,000
Less: Standard deduction(Rs40,000)
Less: Section 80C(Rs1,50,000)
Taxable incomeRs6,10,000
Tax payable
Tax on Rs2.5L–Rs5L @ 5%Rs12,500
Tax on Rs5L–Rs6.1L @ 20%Rs22,000
Health & edu cess @ 4%Rs1,380
Total taxRs35,880
The same person under the current FY 2025-26 new regime would pay nil tax up to Rs12 lakh taxable income after the Section 87A rebate — a very different outcome. Compare with the current-year calculator.
Context
FY 2017-18 vs 2018-19 vs 2019-20
| Feature | FY 2017-18 | FY 2018-19 | FY 2019-20 |
|---|---|---|---|
| Basic exemption (below 60) | Rs2,50,000 | Rs2,50,000 | Rs2,50,000 |
| Standard deduction | Nil | Rs40,000 | Rs50,000 |
| Cess rate | 3% | 4% | 4% |
| 87A rebate | Rs2,500 (≤Rs3.5L) | Rs2,500 (≤Rs3.5L) | Rs12,500 (≤Rs5L) |
| LTCG on equity (above Rs1L) | Exempt | 10% (from Feb 2018) | 10% |
| Lowest slab rate | 5% | 5% | 5% |
Old regime figures. The new tax regime (Section 115BAC) only began from FY 2020-21.
Want the latest slabs and a quick tax estimate?
Open the Income Tax Calculator →Government sourcesFinance Act 2018 & slab history: incometax.gov.in · Standard deduction & cess: Finance Act 2018, Sections 16(ia) & cess provisions · Section 87A rebate: Section 87A, Income-tax Act 1961 (as amended by FA 2018) · Current-year rates: TaxClue Income Tax Slabs (FY 2025-26)
People also ask
FY 2018-19 Income Tax — Frequently Asked Questions
Slabs & Rates
What were the income tax slabs for FY 2018-19?
For FY 2018-19 (AY 2019-20), individuals below 60 were taxed: nil up to Rs2,50,000; 5% from Rs2,50,001 to Rs5,00,000; 20% from Rs5,00,001 to Rs10,00,000; and 30% above Rs10,00,000. A 4% Health & Education Cess applied on the total tax. These slabs were unchanged from FY 2017-18.
Were the income tax slabs changed in Budget 2018?
No. The basic slab rates for FY 2018-19 stayed the same as FY 2017-18. Budget 2018 instead introduced a Rs40,000 standard deduction, raised the cess from 3% to 4%, and reintroduced 10% LTCG tax on equity above Rs1 lakh. The slab thresholds and rates themselves were not altered.
What was the lowest tax rate in FY 2018-19?
The lowest slab rate was 5%, applying to income between Rs2,50,001 and Rs5,00,000 for individuals below 60. Income up to Rs2.5 lakh was exempt. The 5% rate had been reduced from 10% in Budget 2017 and remained at 5% for FY 2018-19.
Was there a new tax regime in FY 2018-19?
No. The optional new tax regime under Section 115BAC only came into effect from FY 2020-21. In FY 2018-19 there was a single regime with the traditional slabs, and taxpayers could claim all Chapter VI-A deductions such as Section 80C.
Standard Deduction
What was the standard deduction for FY 2018-19?
A standard deduction of Rs40,000 was introduced for FY 2018-19 for salaried employees and pensioners. It replaced the transport allowance exemption (Rs19,200) and the medical reimbursement exemption (up to Rs15,000), so the net additional benefit was about Rs5,800. It was raised to Rs50,000 from FY 2019-20.
Did the Rs40,000 standard deduction reduce tax significantly?
Not much. Because it replaced roughly Rs34,200 of existing transport and medical exemptions, the net new deduction was only about Rs5,800 for a typical salaried taxpayer. The simultaneous increase of the cess from 3% to 4% offset part of that benefit.
Cess & Surcharge
What was the education cess rate in FY 2018-19?
From FY 2018-19 onwards the education cess was increased from 3% to 4% and renamed the Health & Education Cess. It is charged on income tax plus surcharge. On a base tax of Rs1,00,000, the cess rose from Rs3,000 to Rs4,000.
What surcharge applied in FY 2018-19?
Surcharge for individuals in FY 2018-19 was 10% where total income exceeded Rs50 lakh but was up to Rs1 crore, and 15% where total income exceeded Rs1 crore. The higher 25% and 37% surcharge bands were introduced only later, from FY 2019-20.
87A Rebate
What was the Section 87A rebate limit for FY 2018-19?
For FY 2018-19, the Section 87A rebate was Rs2,500 for resident individuals with total income up to Rs3,50,000. This was down from the earlier Rs5,000 rebate (available up to Rs5 lakh). Most salaried taxpayers with income above Rs3.5 lakh after deductions did not benefit.
Could NRIs claim the 87A rebate in FY 2018-19?
No. The Section 87A rebate was available only to resident individuals. Non-resident Indians (NRIs) could not claim it, regardless of income level, and also did not get the higher senior-citizen basic exemption limits.
Seniors & NRIs
What was the tax exemption limit for senior citizens in FY 2018-19?
Resident senior citizens aged 60 to 79 had a basic exemption of Rs3,00,000, and super-senior citizens aged 80 and above had Rs5,00,000. Above these limits the same 5%, 20% and 30% slab rates applied, plus 4% cess.
Did NRIs have different slab rates in FY 2018-19?
NRIs used the same slab rates as resident individuals below 60 (nil up to Rs2.5L, then 5%, 20% and 30%). However, NRIs did not get the higher senior/super-senior exemption limits and were not eligible for the Section 87A rebate.
Capital Gains
When was LTCG tax on equity reintroduced?
Budget 2018 reintroduced long-term capital gains tax on listed equity shares and equity mutual funds at 10% on gains above Rs1 lakh, without indexation, effective for transfers from 1 April 2018. Gains accrued up to 31 January 2018 were grandfathered and remained exempt.
Filing
Can I still file an income tax return for FY 2018-19?
The normal and belated return windows for AY 2019-20 have long closed. In limited cases an updated return or a response to a departmental notice may be possible under specific conditions. For any back-year return, consult a tax professional — TaxClue can review your case.
What are the current income tax slabs now?
For FY 2025-26 (AY 2026-27), the new regime is the default: nil up to Rs4L, then 5%, 10%, 15%, 20%, 25% and 30% bands, with a Section 87A rebate making tax nil up to Rs12 lakh taxable income (about Rs12.75L for the salaried after the Rs75,000 standard deduction). See the current-year guide at /income-tax-slabs.
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