Income Tax Slab Rates FY 2018-19 (AY 2019-20)
Updated: 3 June 2026 | Historical Reference — Finance Act 2018 | Old Regime (only regime then)
Net additional benefit over earlier exemptions: ~₹5,800 per year for salaried employees.
Slab Rates — Individuals Below 60 Years (FY 2018-19)
| Income Range | Tax Rate | Tax Amount on Slab |
|---|---|---|
| Up to ₹2,50,000 | Nil | — |
| ₹2,50,001 – ₹5,00,000 | 5% | Up to ₹12,500 |
| ₹5,00,001 – ₹10,00,000 | 20% | Up to ₹1,00,000 |
| Above ₹10,00,000 | 30% | On amount exceeding ₹10L |
Add: Health & Education Cess @ 4% on total tax. Surcharge: 10% if income ₹50L–₹1Cr; 15% if income above ₹1Cr.
Slab Rates — Senior Citizens (Age 60–79 Years)
| Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil (higher basic exemption) |
| ₹3,00,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Slab Rates — Super Senior Citizens (Age 80 Years and Above)
| Income Range | Tax Rate |
|---|---|
| Up to ₹5,00,000 | Nil (highest basic exemption) |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Key Changes Introduced in Budget 2018 (Finance Act 2018)
1. Standard Deduction of ₹40,000
The Finance Act 2018 reintroduced the standard deduction of ₹40,000 for salaried employees and pensioners. This replaced two separate exemptions that were previously available: transport allowance exemption of ₹19,200 per year and medical reimbursement exemption of up to ₹15,000 per year. The net new benefit was approximately ₹5,800. The standard deduction was further enhanced to ₹50,000 from FY 2019-20 onwards.
2. Health & Education Cess: 3% → 4%
The education cess was increased from 3% to 4% on the income tax amount (including surcharge). It was renamed "Health & Education Cess". The additional 1% was earmarked for health and education infrastructure. This raised the effective tax for all taxpayers — for instance, on a tax liability of ₹50,000, the cess went from ₹1,500 to ₹2,000.
3. Section 87A Rebate: Reduced to ₹2,500
The Section 87A rebate for FY 2018-19 was ₹2,500 for individuals with total taxable income up to ₹3,50,000. This was a reduction from the earlier ₹5,000 rebate (FY 2016-17) with an income ceiling of ₹5 lakh. The practical impact was limited as most salaried individuals after claiming deductions had incomes above ₹3.5L.
4. LTCG Tax Reintroduced on Equity
Long-term capital gains above ₹1 lakh on sale of listed equity shares and equity-oriented mutual funds were made taxable at 10% (without indexation benefit), with a grandfathering clause for gains on investments made before 31 January 2018.
Historical Comparison — FY 2017-18 vs FY 2018-19 vs FY 2019-20
| Feature | FY 2017-18 | FY 2018-19 | FY 2019-20 |
|---|---|---|---|
| Basic exemption (below 60) | ₹2,50,000 | ₹2,50,000 | ₹2,50,000 |
| Basic exemption (senior 60–79) | ₹3,00,000 | ₹3,00,000 | ₹3,00,000 |
| Basic exemption (super senior 80+) | ₹5,00,000 | ₹5,00,000 | ₹5,00,000 |
| Standard deduction | Nil | ₹40,000 | ₹50,000 |
| Education cess rate | 3% | 4% (Health & Edu) | 4% |
| 87A rebate | ₹2,500 (≤₹3.5L) | ₹2,500 (≤₹3.5L) | ₹12,500 (≤₹5L) |
| LTCG on equity (above ₹1L) | Exempt | 10% (from Feb 2018) | 10% |
| Lowest slab rate | 5% | 5% | 5% |
Tax Calculation Example — FY 2018-19 (Salary ₹8 Lakh)
| Particulars | Amount (₹) |
|---|---|
| Gross Salary | 8,00,000 |
| Less: Standard Deduction | (40,000) |
| Less: Section 80C (e.g. PPF, LIC) | (1,50,000) |
| Taxable Income | 6,10,000 |
| Tax on ₹2.5L–₹5L @ 5% | 12,500 |
| Tax on ₹5L–₹6.1L @ 20% | 22,000 |
| Total Base Tax | 34,500 |
| Add: Health & Education Cess @ 4% | 1,380 |
| Total Tax Payable | 35,880 |
Frequently Asked Questions
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