Income Tax Slabs for FY 2017-18 (AY 2018-19)

Income Tax Slabs for FY 2017-18

Your income from salary, business or other income like income from fixed/recurring deposits etc are taxed as per income tax slabs. Budget 2017 has made slight changes to the tax slab rates:

  • Tax reduced from 10% to 5% for Income from Rs 2,50,000 – Rs 5,00,000
  • Rs 2,500 or 100% rebate in income tax (whichever is lower) for individuals with income below Rs 3.5 Lakhs u/s 87A
  • 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
  • For income above Rs 1 crore the surcharge of 15% remain

Income Tax Slabs:

There is NO separate tax slab for men and women. Earlier women used to have slight benefit over men in terms of lower taxes!

The tax slabs are determined on age of person. As of today there are 3 slab rates based on age:

  1. Below 60 years of age
  2. Senior Citizens (60 to less than 80 years of age)
  3. Very Senior Citizens (80+ years of age)

How much tax you Save from Budget 2017 Download FY 2017-18 Income Tax Calculator 

The table below gives the tax slab rates:

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

Also Read: 25 Ways Budget 2017 Impacts Your Taxes and Investments

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

Related Post

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

Also Read: 25 Tax Free Incomes & Investments in India

Income tax slab for Partnership Firm:

A partnership firm (including LLP) income is taxable at 30%.

Surcharge: 12% 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

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
Amit

Hi Readers! I am Amit, the mind behind Apnaplan.com I am MBA from NITIE, Mumbai and BIT from Delhi University. This blog is my online diary where I write about my tryst with my investment decisions. In the 400+ posts on this blog you will find articles on Personal Financial Planning, Investments, Retirement Planning, Insurance, Loans, Fixed Deposits, Provident Funds, Stock Markets, Gold, Silver, Real Estate Investment, Credit Cards, Credit Score, Taxation, Inheritance Planning and Reviews on various Financial Products.

View Comments

  • I wish to understand, incase of an individual's income is 15L per year, will his tax liability be based on the slabs mentioned in the article?Meaning for the first 2,50,000 there will be 0 tax. For the next 2,50,000 i.e- Income from 2.5 to 5L he will have to pay tax @5%. And similar calculation for the other brackets till his entire 15L income is accounted for. Please advise

  • Capital Gai8n Tax to be paid It is not very clear.

    For Short term gain, say if a property is sold before 3 year, one has to pay 30% of profit or profit will be added to his income and will be taxed as per his slab

    • The short term capital gains are added to the income and taxed at applicable income tax slabs. Also for property the holding period has been reduced to 2 years from 3 years from FY 2017-18

  • Sir if i make savings in ppf amounting to 1.5L and apart from that i have 48000 as nps contribution. Can this amount of 48k be shown independently under Section 80CCD(1B) that allows additional benefit, whereas employers contribution is marked under section 80CC (2).

  • Ants (BJP) do beautiful constructions step by step for future life, here people should support but normally becomes selfish because of no scams from BJP government.

    Snakes (Congress) utilize those constructions because of those selfish people votes for small things. Won't bother about the country future.

    So India instead of changing its shape as Bharat to reach world number one position showing as developing country from last 70 years, even thou it is a leader forever.

    • This is a fiscally oriented article, please take your opinions and emotions to a blog.
      People are here to understand how the budget operates and how it is going to affect them.
      If you have insights on how the various challengers for the government are going to implement the budget and how it is going to affect us, then I would welcome you to write a more detailed article about who is doing what- but just not here.

Published by
Amit

Recent Posts

Have you Explored all Options to Save Tax for FY 2021-22?

Everyone hates paying taxes and always are on lookout for Options to Save Tax. However…

December 29, 2021

What is Lien Amount in SBI? How to remove Lien amount in SBI?

Are you worried and confused about Lien amount in SBI? Well you are not alone.…

August 9, 2021

Sovereign Gold Bond August 2021 ★ Best (Tax Free) way to Invest in Gold

Get details of latest Sovereign Gold Bond Price, Issue details, taxation and how to invest.…

August 8, 2021

Income Tax Calculator India in Excel★ (FY 2021-22) (AY 2022-23)

Download the Excel based Income Tax Calculator India for FY 2020-21 (AY 2021-22). This compares…

August 1, 2021

9% Piramal Capital & Housing Finance Ltd NCD ★ July’21 ★ Should you Invest?

Piramal Capital & Housing Finance, has come out with Piramal Capital & Housing Finance Ltd…

July 12, 2021

10% IIFL Home Loan NCD ★ July’21 ★ Should you Invest?

IIFL Home Loan, the Housing Finance company from IIFL Group has come out with IIFL…

July 6, 2021
For more such interesting Posts Visit apnaplan.com