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New Income Tax Slab Rates for AY 2018-19 / FY 2017-18

New Income Tax Slab Rates: On the occasion of Union Budget sessions, The finance minister Arun Jaitley announced the reduction of the existing rate of taxation for individuals with income ranging between Rs 2.5 lakh to Rs 5 lakh to 5% instead of 10%. There will be a surcharge of 10% for those whose annual income is Rs 50 lakh to Rs 1 crore. Additionally, the 15% surcharge on Rs 1 crore or more remains unchanged. These income tax changes are announced while presenting the Budget for the financial year 2017-18 in Parliament. Check out the New Income Tax Slab Rates for the Assessment Year 2018-2019 and for the financial year 2017-2018 from the below article.

Income-Tax-Slab-Rates

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Income Tax Slab Rates for AY 2018-19 / FY 2017-18

Finance Minister Arun Jaitley today announced some income tax changes while presenting the Budget for the financial year 2017-18 in Parliament.

Here are some of the key points:

  • 5% tax (instead of current 10%) for those earning 2.5 lakhs to 5 lakhs
  • After rebates, zero tax liability for people with income of 3 lakhs
  • All other categories will also get the uniform benefit of Rs. 12,500
  • With the income tax rate dropping to 10% surcharge on those earning 50 lakhs to 1 crore
  • More than 1 crore: 15% surcharge (already exists)

Income Tax Slab for HUFs & Individuals (below 60 years – for both Men & Women)

Income 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% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
    • 15% surcharge on income tax if the total income exceeds Rs 1 crore
  • Education Cess: 2% cess on income tax including surcharge
  • Secondary and Higher Education Cess: 1% cess on income tax including surcharge
  • Rebate under Section 87A: Rs 2,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 3.5 Lakhs

Income tax slab for senior citizens (60 years to less than 80 years old) (both men & women)

Income 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% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
    • 15% surcharge on income tax if the total income exceeds Rs 1 crore
  • Education Cess: 2% cess on income tax including surcharge
  • Secondary and Higher Education Cess: 1% cess on income tax including surcharge
  • Rebate under Section 87A: Rs 2,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 3.5 Lakhs

Income tax slab for Very senior citizens (80 years or more) (both men & women)

Income Slab Tax Rate
Income up to Rs 2,50,000 No Tax
Income from Rs 2,50,000 – 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% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
    • 15% surcharge on income tax if the total income exceeds Rs 1 crore
  • Education Cess: 2% cess on income tax including surcharge
  • Secondary and Higher Education Cess: 1% cess on income tax including surcharge

Income tax slab for Domestic Companies:

Company Turnover Tax Rate
Less than 50 crore 25%
More than 50 crore 30%
Surcharge:

  • 7% surcharge if the income is more than 1 crore but less than 10 crore
  • 12% surcharge if the income is more than 10 crore

Education Cess: 2% cess on income tax including surcharge

Secondary and Higher Education Cess: 1% cess on income tax including surcharge

Capital Gains Tax Rates:

Some income related to capital gains are taxed at special rates as shown below:

Capital Gains Tax Rate
Short term capital gains from assets (Other than shares & mutual funds) At Income Tax Slab rates listed above
Long term capital gains from assets (Other than shares & mutual funds) 20% (+3% edu cess)
Short term capital gains on shares and equity mutual funds 15% (+3% edu cess)
Long term capital gains on shares and equity mutual funds NIL
Short term capital gains on debt mutual funds At Income Tax Slab rates listed above
Long term capital gains on debt mutual funds At 20% (+3% edu cess) with indexation

The finance minister has proposed to slash the tax rate for individuals in the lowest income tax slab – Rs 2.5 lakh to Rs 5 lakh –to 5% instead of 10%. The existing rebate under Section 87A (currently given to people with income up to Rs 5 lakh) is proposed to be reduced to Rs 2500 from the existing Rs 5000 for individuals earning between Rs 2.5 lakh to Rs 3.5 lakh.

New Income Tax Slab Rates for AY 2018-19 / FY 2017-18 PDF

We will update the New Income Tax Slab Rates for the assessment year 2018-19 and the financial year 2017-18 with the example in PDF Format. So, Stay tuned to this page….

Income Rs 5 lakhs

AY 2017-18: Net tax payable (Including education cess) is Rs 5,150
But for Ay 2018-19: Net tax payable (Including education cess) is Rs 2,575
If the limit of Rs 1.5 lakh under Section 80C for investment is used fully, the tax would be zero for people with income of Rs 4.5 lakhs.

5-Lakh

For income Rs 10 lakh

10-lakh

For income Rs 15 lakh

15-Lakh

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