Budget 2018 has proposed to hike cess on income tax from 3% to 4% thereby increasing the tax payable by all categories of tax payers. Due to this change, the tax liability for highest tax bracket (assuming Rs 15 lakh income) goes up by Rs 2,625. For the middle income tax payers (between Rs 5 lakh and Rs 10 lakh), tax liability increases by Rs 1,125, and for the lowest bracket (Rs 2.5 lakhs to Rs 5 lakhs) by Rs 125.
Here's is a look at how your tax liability will be affected post- ..
Currently, a cess of 3% of income tax payable is added to the tax liability. This 3 per cent is made up of 2 per cent of education cess and 1 per cent of senior secondary education cess.
As per the current income tax slabs, taxation of income of resident individuals below 60 years is as follows: Income upto Rs 2.5 lakh is exempt from tax, 5 per cent tax on income between Rs 250,001 to Rs 5 lakh; 10 per cent tax on income between Rs 500,001 and Rs 10 lakh; and 30 per cent tax on income above Rs 10 lakh.