Income Tax New Slabs For FY 2017 18 AY 2018 19

Income Tax New Slabs For FY 2017 18 AY 2018 19

We think of Budget and first thing we have in mind will there be any change in Tax rates, how much tax we have to pay, what benefit we will get.

Well, in this time there are some benefits given.

The government has reduced the tax rate for the income between 2.5 lacs to 5 lacs from 10% to 5 %. The basic exemption limit is 2.5 lacs.This is applicable to salaried people individuals, females, businessmen, firms, companies, etc.The tax free limit for senior citizen has been increased to 3 lacs i.e Rs 50,000 more.

To put more money into the hands of employees, the government has cut tax rate by half to 5 percent from 10 percent for employees in the yearly income group between Rs 2.5 and Rs 5 lakh. 

The move is expected to help them save tax of up to Rs 12,500 a year.

A tax saving of Rs 14,806 a year, including surcharge and cess, will be available for income above Rs 1 crore a year. And for people whose taxable income is between Rs 5 lakh and Rs 50 lakh, tax savings amount to Rs 12,900.

The Finance Minister also announced that income tax for small companies with an annual turnover of Rs.50 crore would be reduced. Income tax has been reduced to 25% from the previous rate of 30%. It was also announced that all individuals who earn less than Rs.5 lakh per year will have to file a one page I-T return form. 

Income tax slab for individual taxpayers & HUF (less than 60 years) (both men & women)

Income Tax Slab

Tax Rate

Income up to Rs. 2,50,000*

No Tax

Income from Rs. 2,50,000 – Rs. 5,00,000

5%

Income from Rs. 5,00,000 – 10,00,000

20%

Income more than Rs. 10,00,000

30%

Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs. 1 crore.

Cess: 3% on total of income tax + surcharge.

* Income upto Rs. 2,50,000 is exempt from tax if you are less than 60 years old.

Income tax slab for individual taxpayers & HUF (60-80 old) (both men & women)

Income Tax Slab

Tax Rate

Income up to Rs. 3,00,000*

No Tax

Income from Rs. 3,00,000 – Rs. 5,00,000

5%

Income from Rs. 5,00,000 – 10,00,000

20%

Income more than Rs. 10,00,000

30%

Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

* Income up to Rs. 3,00,000 is exempt from tax if you are more than 60 years but less than 80 years of age.

Income tax slab for super senior citizens (80+) (both men & women)

Income Tax Slab

Tax Rate

Income up to Rs. 2,50,000*

No Tax

Income up to Rs. 5,00,000*

No Tax

Income from Rs. 5,00,000 – 10,00,000

20%

Income more than Rs. 10,00,000

30%

Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

*Income up to Rs. 5,00,000 is exempt from tax if you are more than 80 years old.

Customers should note that the Income Tax Exemption limit per FA 2016 is up to a maximum of Rs.2,50,000 for all individuals and HUF other than those who are covered in Part(II) or Part(III).