Categories: Bank News

Income Tax slabs for individuals for the financial year 2017-18

  1. No changes have been made to existing income tax slabs.
  2. FM reduces income tax rate from 10% to 5%  for Income up to 5 lakh
  3. Tax Credit of 5% of taxable income. (Maximum of Rs. 2500/-) u/s.87A up to the taxable income of Rs.3.50 lakh-.
  4. Surcharge of 10% for Tax on those whose annual income is Rs 50 lakh to 1 crore.
  5. 15% surcharge on incomes above Rs 1 crore to continue.

New schemes:

  1. Government plans to extend the basket of financial instruments to which capital gain can be invested without the payment of tax.
  2. Long term capital gains tax on property is reduced to 2 years from the current 3 years.
  3. 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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Surendra Naik

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Surendra Naik
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