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Income tax calculation

Last updated November 30, 2022 · Tushar Agarwal

HRStop also calculates income tax, based on the latest income tax slabs declared for the financial year. Income tax calculation is a backend process that you can't view, but you can see its effect in the payroll module.

Income tax slabs for FY 2018-19

The new and revised income tax slabs and rates applicable for the financial year (FY) 2018-19 and assessment year (AY) 2019-20 are mentioned below:

General taxpayers:

Income Slab---------------------------------------------------------------------------------Tax Rates

  1. Up to Rs 2,50,000--------------------------------------------------------------------No tax / exempt

  2. 2,50,001 to 5,00,000------------------------------------------------------------------5% of (Total income- 2,50,000)

  3. 5,00,001 to 10,00,000-----------------------------------------------------------------12500+20% of (Total income – Rs. 5,00,000).

  4. Above 10,00,000----------------------------------------------------------------------1,12,500+30% of (Total income -Rs. 10,00,000)

Resident Senior Citizens above 80 years:

Income Slab---------------------------------------------------------------------------------Tax Rates

  1. Up to Rs 5,00,000--------------------------------------------------------------------No tax / exempt

  2. 5,00,001 to 10,00,000-----------------------------------------------------------------20% of (Total income-Rs 5,00,000)

  3. Above 10,00,000----------------------------------------------------------------------Rs. 100,000/- + 30% of (Total income -Rs. 10,00,000)

Resident Senior Citizens above 60 years:

Income Slab---------------------------------------------------------------------------------Tax Rates

  1. Up to Rs 3,00,000---------------------------------------------------------------------No tax / exempt

  2. 3,00,001 to 5,00,000------------------------------------------------------------------5% of (Total income- 3,00,000)

  3. 5,00,001 to 10,00,000-----------------------------------------------------------------Rs. 10,000/- + 20% of (Total income- Rs. 5,00,000)

  4. Above 10,00,000----------------------------------------------------------------------Rs. 1,10,000/- + 30% of (Total income – Rs. 10,00,000)

Tax Credit: Rs. 2,500 for every person whose income doesn’t exceed Rs. 3,50,000

Surcharge on Income Tax: 10% of the Income Tax payable, if the total taxable income is between Rs.50, 000,000 and Rs 1 crore, and 15% for taxable income >1 crore. The surcharge shall not exceed the amount of income that exceeds Rs.1 crore.

Education Cess: 4% of Total Income Tax plus surcharge.