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:
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:
How much tax you Save from Budget 2017 Download FY 2017-18 Income Tax Calculator
The table below gives the tax slab rates:
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% |
|
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Also Read: 25 Ways Budget 2017 Impacts Your Taxes and Investments
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% |
|
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% |
|
Company Turnover | Tax Rate |
Less than 50 crore | 25% |
More than 50 crore | 30% |
Surcharge:
Education Cess: 2% cess on income tax including surcharge Secondary and Higher Education Cess: 1% cess on income tax including surcharge |
Also Read: 25 Tax Free Incomes & Investments in India
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
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 |
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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
Yes your understanding is correct!
Thanks a lot
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).
Yes you can take NPS tax exemption u/s 80CCD(1b) giving you additional tax benefit!
Tax reduced for companies for turnover of 50 Cr. what about partnership firms.
There is NO reduction in tax of partnership firm. Its 30% + cess & surcharge!
Sr citizens having income between 3.5-4lakh will have to pay more in AY2018-19 than2017-18.
Thanks for pointing this out, I had missed it. And yes this is very unfortunate!
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.
firtst step in reducing tax load on public. well done BJP. GO AHEAD . WE ARE WITH YOU
MOdi govt is minting money through this budget , this govt must be throwmn out from indian democracy
The Budget is unpromising....The Government must step in to change the Finance Minister....