Income Tax Slabs: Know Income Tax Slab Rate For FY 2017-18

Income Tax Rates for 2017-18

With the announcement of Union Budget for 2017-18, all the tax payers with lowest income tax slabs have reasons to smile. Finance Minister Arun Jaitley pleases taxpayers of salaried group. The income tax slabs 2017-2018 gets the tax rates slashed from 10% to 5% for the lowest income slab. With the implementation of the new tax rates, the individuals earning Rs. 2.5 to 5 lakhs will be having their tax halved. Needless to say, a huge relief to the people belonging to the salaried class with lowest taxable income slab!

To add further benefits, reliefs to all the other types of taxpayers are also announced. The new slashed tax rates will be effective from 1st April 2017. From the new financial year, employees earning 2.5 to 5 lakh per annum will be paying only 5% against the current rate of 10%.


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Income Tax Slabs

Furthermore, a surcharge of 10% is announced on incomes between Rs. 50 lakhs and 1 crore. Similarly, a surcharge of 15% will be levied on incomes above 1 crore. An additional benefit comes in the form of simplification of the income tax return filing process. If you are earning up to Rs. 5 lakhs, you will have to fill only a single page submission form to file returns. Also you can know TDS refund status online at official website.  Finance Minister has also promised to treat the honest tax payers with dignity. Further in this post, we have shown in details how much tax you will be paying as per the new income tax slabs 2017-18.

Revised Income Tax Slabs 2017-18

The moves are definitely seen as an attempt to rectify the troubles suffered due to demonetization. Besides people earning up to Rs 5 lakhs, those earning above 5 lakhs are also benefitted to some extent.

Here are the revised income tax slabs for the financial year 2017-2018 in a tabular form.

For Individual Tax Payers

Income Tax rate
Up to Rs 2,50,000 Nil
Rs 2,50,001 to Rs 5,00,000 5%
Rs 5,00,001 – 10,00,000 20%
More than Rs 10,00,000 30%

Income Tax Slab Rates

Income Tax Slabs For Senior Citizens (between 60 to 80 years)

Income Tax rate
Up to Rs 3,00,000 Nil
Rs 3,00,001 to Rs 5,00,000 10%
Rs 5,00,001 to Rs 10,00,000 20%
More than Rs 10,00,000 30%

 For Senior Citizens (of and above 80 years)

Income Tax rate
Up to Rs 5,00,000 No tax
Rs 5,00,001 to Rs 10,00,000 20%
More than Rs 10,00,000 30%
(Surcharge of 10 per cent on income of all individuals above Rs 50 lakh and less than Rs 1 crore and surcharge of 15 per cent on income above Rs 1 cr

Notes:

  1. All individuals earning above Rs. 50 lakh but less than Rs. 1 crore will be incurring a surcharge of 10%.
  2. A surcharge of 15% on all individuals earning above Rs. 1 crore
  3. All above income mentioned above are in INR and per annum basis.
  4. The above changes apply to the salaried class.
  5. In the case where the surcharges are applied, the cess will be on the sum of tax amount and surcharge.

Each of the above categories of income group will be having rebate benefit as per deductions of Section 80C of income tax act. The complete online procedure of income tax return filing is updated on myincometaxrefund.in.

So, when the new budget is applied in terms of revised income tax slabs 2017-2018 policies, the tax liability of employees earning Rs. 3 to 3.5 lakhs will be only Rs. 2575. For people with income below Rs 3 lakh, the tax liability will be zero.

The income tax for the firms will be 30% of the taxable income. The surcharge of 12% is applied where taxable income is above Rs. 1 crore. The EC (education cess) applies as a total of tax and surcharge. Similar rates apply for the local authorities as well. For the domestic company with turnover up to Rs. 5 crores, the rate will be 29% of the taxable income. A company with turnover above Rs. 5 crores will be attracting 30% of the taxable income.

All the above data related to new income tax slabs 2017-18 are assembled from the authorized sites. The applicability and the rates are subject to change as per the government’s rulings. Keep an eye on our blog for more updates on revised income tax rates.

One thought on “Income Tax Slabs: Know Income Tax Slab Rate For FY 2017-18

  1. Thanks for finally talking about >Income Tax Slabs: Know Income Tax Slab Rate For FY 2017-18 <Loved it!

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