(Last Updated On: March 8, 2017)

Through this blog, we shall share the Income tax slabs for Financial year 2017-18 i.e.Assessment year 2018-19.

As per Union Budget 2017 the Income Tax slab rate for financial year 2017-18 has been reduced to 5% for individuals having income between Rs 2.5 lakhs to Rs 5 lakhs. This Income tax slab rate was 10% for the financial year 2016-17. The remaining tax slabs remain as before.

So,you will be straightaway saving income tax of Rs.12500 (250000*5/100) + Education cess Rs.250 & Higher education cess of Rs.125 .

Also,as per Budget 2017 : For Financial year 2017-18 the rebate under section 87A has been reduced to Rs.2500 for individuals having income upto Rs.3.5 lakhs. For financial year 2016-17 this rebate under section 87A was Rs.5000  for individuals with income upto Rs.5 lakhs. This is to avoid duplication of tax benefits.

The combined effect of the above two points shall mean that if your annual income is up to Rs 3 lakhs then your tax liability shall be nil.This is to avoid duplication of benefits for the Rs 2.5-5 lakhs tax slab.

If you are a senior citizen then your income upto Rs.3 lakhs is anyways not taxable as per income tax slabs for financial year 2016-17.

So,if your annual income is Rs.3 lakhs ( non senior citizen) : then Rs.2.5 lakhs is basic exemption as per tax slabs.Your tax shall be Rs.2500 ( 300000-250000)*5% .Now, you can claim rebate under section 87A of Rs.2500. So,your final tax liability shall be NIL.

  • A surcharge of 10% on individual income above Rs.50 lakhs and upto Rs.1 crore.
  • Surcharge @ 15% on income above Rs.1 crore to continue as before.

We can sum up the above changes in the income tax slabs in a simple manner as shown in the Income tax rates tables below.

8224558831_5db0d03605_b

Income tax slabs for Financial year 2017-18

1. Income tax slab for Resident Individuals below 60 years of age

IncomeTax rate
Upto Rs.2.5 lakhsNo tax
From 2.5 lakhs to 5 lakhs5%
From 5 lakhs to 10 lakhs20%
Income > Rs.10 lakhs30%
  • A surcharge of 10% on individual income above Rs.50 lakhs and upto Rs.1 crore.
  • Surcharge @ 15% on income above Rs.1 crore to continue as before.
  • Education Cess : 2% of Total Income tax and surcharge.
  • Secondary and Higher Education cess: 1% of Income tax and surcharge.

2. Income tax slab for Senior citizens i.e.Resident Individuals above 60 years but below 80 years

IncomeTax rate
Upto Rs.3 lakhsNo tax
From 3 lakhs to Rs.5 lakhs5%
From 5 lakhs to Rs.10 lakhs20%
Income > Rs.10 lakhs30%
  • A surcharge of 10% on individual income above Rs.50 lakhs and upto Rs.1 crore.
  • Surcharge @ 15% on income above Rs.1 crore to continue as before.
  • Education Cess : 2% of Total Income tax and surcharge.
  • Secondary and Higher Education cess: 1% of Income tax and surcharge.

3. Income tax slab for Super senior citizens i.e.Resident Individuals above 80 years of age

IncomeTax rate
Upto Rs.5 lakhsNo tax
From 5 lakhs to Rs.10 lakhs20%
Income > Rs.10 lakhs30%
  • A surcharge of 10% on individual income above Rs.50 lakhs and upto Rs.1 crore.
  • Surcharge @ 15% on income above Rs.1 crore to continue as before.
  • Education Cess : 2% of Total Income tax and surcharge.
  • Secondary and Higher Education cess: 1% of Income tax and surcharge.

Feel free to share your valuable feedback on the same.If you have any queries, you can ask the same in our comment section below.

If you are a salaried person,you may be interested in 7 tax saving options for salaried class

Thinking about your tax planning you may like our popular blog post : Tax deduction U/s 80C : 15 Best tax saving investments !

 

You will also like these Posts

Income tax slabs for Financial year 2017-18https://fintrakk.com/wp-content/uploads/2017/03/8224558831_5db0d03605_b-1024x683.jpghttps://fintrakk.com/wp-content/uploads/2017/03/8224558831_5db0d03605_b-150x150.jpgadminTaxationincome tax slab financial year 2017-18,income tax slab fy 2017-18,income tax slab rate,income tax slab rates,income tax slabs,income tax slabs for financial year 2017-18,Tax slabsThrough this blog, we shall share the Income tax slabs for Financial year 2017-18 i.e.Assessment year 2018-19. As per Union Budget 2017 the Income Tax slab rate for financial year 2017-18 has been reduced to 5% for individuals having income between Rs 2.5 lakhs to Rs 5 lakhs. This Income tax slab...