Friday, November 29News That Matters

Income Tax Rates / Tax Slab for FY 2017-2018 (Budget) AY 2018-2019

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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

 

Read the Budget announcement for Personal Taxation

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