Cheers!!! In Budget 2017, the government has made some positive changes to tax slabs. – Read the Budget announcement for Personal Taxation
Income Tax Slab / Rates applicable in India for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI)
Applicable for FY 2017-2018 (AY 2018-2019)
| For Individuals below 60 years age (including Woman Assessees) (born on or after 01-Apr-1957) | |
| upto Rs 2.50 Lakh | NIL |
| Rs 2.50 lakh – Rs 5 Lakh | 5% on amount exceeding Rs 2.50 lakh |
| Rs 5 lakh – 10 Lakh | Rs 12500 + 20% of amount exceeding Rs 5 Lakh |
| above Rs 10 akh | Rs 112500 + 30% of amount exceeding Rs 10 lakh |
Income tax rebate u/s 87A is applicable for those who earns upto Rs 3.5 lacs.
There is also a cess of 3% on total tax (not on total income)- so effective tax rate will become 5.15%, 20.6% & 30.9%)
Read the Budget announcement for Personal Taxation
| For Individuals aged 60 years and above but below 80 years (Senior Citizen) | |
| upto Rs 3 Lakh | NIL |
| Rs 3 lakh – Rs 5 Lakh | 5% on amount exceeding Rs 3 lakh |
| Rs 5 lakh – 10 Lakh | Rs 20000 + 20% of amount exceeding Rs 5 Lakh |
| above Rs 10 Lakh | Rs 120000 + 30% of amount exceeding Rs 10 lakh |
Read the Budget announcement for Personal Taxation
| For Individuals aged 80 years and above (Very Senior Citizen) | |
| Upto 500,000 | Nil |
| 500,000 to 1,000,000 | 20% of the amount exceeding 500,000 |
| 1,000,000 & above | Rs.100,000 + 30% of the amount exceeding 1,000,000 |
Read the Budget announcement for Personal Taxation
3. Surcharge on Income Tax – If the total taxable income exceeds Rs 1 crore , there will be sucharge of 10% of Tax payable ( not 10% of income)
A surcharge of 10% on tax payable is proposed for individuals having an income of INR 50 lakhs to INR 1 crore.
4. Education Cess + SHEC : 3% of Income Tax plus Surcharge (applicable for every assesse)
5. Check various deductions you can claim while computing your tax. Read Article here