Income Tax Slab Rate & Deductions – FY 2017-18 (AY 2018-19)


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What is Income Tax Slab?

Income tax is that percentage of income paid to the government by the taxpayers for the betterment of the public at large. This income is categorized into different groups on the basis of the amount of income. Each such group is known as a Tax Slab. Tax is charged at different rates on the range of income falling under different income tax slabs.
The Income Tax Act 1961 is the law that governs the provisions for our income tax in India.
The income tax slab rates are usually revised every year during the budget. Various deductions are allowed to a taxpayer under Section 80C, Section 80D, etc.

Income Tax Slab Rate Post Budget 2017

The tax is calculated according to the income tax slabs announced by the government every year in the Budget. The finance minister has announced the changes in the tax slab structure in union budget for 2017.
Following are the income tax slab rates and deductions in India for different categories of tax payers:

Income Tax Slab Rate For Men below 60 Years of Age

Income Tax SlabIncome Tax RateEducation CessSecondary and Higher Education Cess
Income upto Rs. 2,50,000NilNilNil
Income between Rs. 2,50,001 – Rs. 500,0005% of Income exceeding Rs. 2,50,0002% of income tax1% of income tax
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,0002% of income tax1% of income tax
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,0002% of income tax1% of income tax

 

Income Tax Slab Rate For Women below 60 Years of Age

Income Tax SlabIncome Tax RateEducation CessSecondary and Higher Education Cess
Income upto Rs. 2,50,000NilNilNil
Income between Rs. 2,50,001 – Rs. 500,0005% of Income exceeding Rs. 2,50,0002% of income tax1% of income tax
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,0002% of income tax1% of income tax
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,0002% of income tax1% of income tax

 

Income Tax Slab Rate For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax SlabIncome Tax RateEducation CessSecondary and Higher Education Cess
Income upto Rs. 3,00,000NilNilNil
Income between Rs. 3,00,001 – Rs. 500,0005% of Income exceeding Rs. 2,50,0002% of income tax1% of income tax
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,0002% of income tax1% of income tax
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,0002% of income tax1% of income tax

 

Income Tax Slab Rate For Senior Citizens (Age 80 years or more)

Income Tax SlabIncome Tax RateEducation CessSecondary and Higher Education Cess
Income upto Rs. 5,00,000NilNilNil
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,0002% of income tax1% of income tax
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,0002% of income tax1% of income tax

 

Income Tax Slab Rate Hindu Undivided Families (HUF)

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000Nil
Rs.2,50,000 to Rs.5,00,00010% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,00020% Income exceeding Rs. 5,00,000
Over Rs.10,00,00030% Income exceeding Rs. 10,00,000

Income Tax Slab Rate Legal Entities Registered as Associations of Persons

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000Nil
Rs.2,50,000 to Rs.5,00,00010% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,00020% Income exceeding Rs. 5,00,000
Over Rs.10,00,00030% Income exceeding Rs. 10,00,000

Income Tax Slab Rate Legal Entities Registered as Bodies of Individuals

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000Nil
Rs.2,50,000 to Rs.5,00,00010% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,00020% Income exceeding Rs. 5,00,000
Over Rs.10,00,00030% Income exceeding Rs. 10,00,000

Partnership Firms:

Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%

Local Authorities:

Local Authorities are to be taxed at the rate of 30%.

Domestic Companies:

Domestic Companies are to be taxed at the rate of 30%

Income Tax Slab RateCo-operative Societies

Income Tax SlabIncome Tax Slab Rate
Up to Rs.10,00010% Income
Rs.10,000 to Rs 20,00020% Income exceeding Rs. 10,000
Over Rs. 20,00030% Income exceeding Rs. 20,000

Also,

Surcharge:

  1. 2% of the income tax amount (If income is greater than Rs.1,00,00,000/-)
  2. 5% of the income tax amount. Subject to marginal relief (If income is greater than Rs.10,00,00,000/-)

Education Cess: 2% extra (charged on the amount of income tax + surcharge being paid)

Secondary and Higher Education Cess: 1% extra (charged on the amount of income tax + surcharge being paid)

Comparison Of Income Tax Slabs For FY 2017-18 and FY 2016-17

Income Tax SlabIncome Tax For FY 2017-18Income Tax For FY 2016-17
Income upto Rs. 2,50,000NilNil
Income between Rs. 2,50,001 – Rs. 500,0005% of Income exceeding Rs. 2,50,00010% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,00030% of Income exceeding Rs. 10,00,000

 

Disclaimer: – The articles are for information purposes only. Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. You must consult a financial advisor who understands your specific circumstances and situation before taking an investment decision.

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