- No changes have been made to existing income tax slabs.
- FM reduces income tax rate from 10% to 5% for Income up to 5 lakh
- Tax Credit of 5% of taxable income. (Maximum of Rs. 2500/-) u/s.87A up to the taxable income of Rs.3.50 lakh-.
- Surcharge of 10% for Tax on those whose annual income is Rs 50 lakh to 1 crore.
- 15% surcharge on incomes above Rs 1 crore to continue.
New schemes:
- Government plans to extend the basket of financial instruments to which capital gain can be invested without the payment of tax.
- Long term capital gains tax on property is reduced to 2 years from the current 3 years.
- Aadhaar Pay- an app for merchants- to be launched’ 20 lakh aadhaar-based POS by September 2017
Tax applicable to individuals for the financial year 2017-18 (AY 2018-19)
Born on after 01.04.1958
| Income Slabs | Tax & Surcharge |
| Income slab up to Rs.3 lakh | Nil |
| Income from 2.5 lakh to 5 lakh | 5% |
| Income from 5 lakh to Rs.10 lakh | Rs.12,500+20% on 5 lakh up to Rs.10 lakh |
| Income from 10 lakh to rs.50 lakh | Rs.1,12,500+ 30% on 10 lakh up to Rs.50 lakh |
| Income from 50 lakh to Rs.1 crore | 13,12,500 + 30% on 50 lakh up to 1 crore+ 10% surcharge |
| Income from Rs.1 crore and above | 28,12,500 +30% on above 1 crore+ 15% surcharge |
Senior Citizen Born on before 31.03.1958
| Income Slabs | Tax |
| Taxable Income up to Rs.3.50 lakh (u/s 87 A) | Nil . |
| Income from 3 lakh to 5 lakh | 5% |
| Income from 5 lakh to Rs.10 lakh | Rs.10,000+20% on 5 lakh up to Rs.10 lakh |
| Income from 10 lakh to rs.50 lakh | Rs.1,10,000+ 30% on 10 lakh up to Rs.50 lakh |
| Income from 50 lakh to Rs.1 crore | 13,10,000 + 30% on 50 lakh up to 1 crore+ 10% surcharge |
| Income from Rs.1 crore and above | 28,10,000 +30% on above 1 crore+ 15% surcharge |
Super Senior Citizen (Born on before 31.03.1938)
| Income Slabs | Tax + Surcharge |
| Income slab up to Rs.5 lakh | Nil |
| Income from 5 lakh to Rs.10 lakh | 20% |
| Income from 10 lakh to rs.50 lakh | Rs.1,00,000+ 30% on 10 lakh up to Rs.50 lakh |
| Income from 50 lakh to Rs.1 crore | 13 lakh + 30% on 50 lakh up to 1 crore+ 10% surcharge |
| Income from Rs.1 crore and above | 28 lakh +30% on above 1 crore+ 15% surcharge |
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