Insurance

New Income Tax Slab Rates for FY 2017-18

Income Tax Slab Rates for Financial Year 2017-18 (The assessment year 2018-19):

For the fiscal year 2017-18, Income Tax Slab rate equal to Rs. 5 lakhs has declined from 10 percent to 5 percent.

Part I: Slab rate for Income Tax for Individual Taxpayers and Hindu Undivided Family (HUF) (Not more than 60 years of age, including both women and men)

Income Slab Rate of tax
Earning up to Rs. 2.5 lakhs* No tax
Earnings from Rs. 2.5 lakhs to Rs. 5 lakhs 5%
Earnings from Rs. 5 lakhs to Rs. 10 lakhs 20%
Earnings more than Rs. 10 lakhs 30%
Surcharge: 10 percent of the income tax, where total earnings are more than Rs. 50 lakhs up to Rs. 1 crore.

Surcharge: 15 percent of the income tax, where the total earnings are more than Rs. 1 crore

Cess: 3 percent of total of the income tax + surcharge
*The exemption limit for income tax for FY 2017-2018 is up to Rs. 2.5 lakhs for individual and Hindu Undivided Family other than the ones who are covered in Part II or III.

Part II: Slab rate for Income Tax for Senior Citizens (60 years or more but not more than 80 years) (Both women and men)

Income Slab Rate of tax
Earnings up to Rs. 3 lakhs* No tax
Earnings from Rs. 3 lakhs to Rs. 5 lakhs 5%
Earnings from Rs. 5 lakhs to Rs. 10 lakhs 20%
Earnings more than Rs. 10 lakhs 30%
Surcharge: 10 percent of the income tax, where total earnings are more than Rs. 50 lakhs up to Rs. 1 crore.

Surcharge: 15 percent of the income tax, where the total earnings are more than Rs. 1 crore

Cess: 3 percent of total of the income tax + surcharge
*The exemption limit for income tax for FY 2017-2018 is up to Rs. 3 lakhs other than the ones who are covered in Part I or III

Part III: Slab rate for income tax for senior citizens (80 years of age or more) (both women and men)

Income Slab Rate of tax
Earnings up to Rs. 2.5 lakhs* No tax
Earnings equal to Rs. 5 lakhs* No tax
Earnings from Rs. 5 lakhs to Rs. 10 lakhs 20%
Earnings more than Rs. 10 lakhs 30%
Surcharge: 15 percent of the income tax, where the total income goes beyond Rs. 1 crore.
Cess: 3 percent on the total of the income tax + surcharge
*Exemption limit for income tax for the fiscal year 2017-18 is equal to Rs. 5 lakhs other than the ones who are covered in Part I or Part II.

Income Tax Slab Rate for Local Companies for the FY 2017-18  and AY 2018-19:

The income tax slab rate of tax for companies with an annual turnover of up to Rs 50 crore has declined to 25 percent from 30 percent.

Apart from the above changes, another rate of taxes remains the same as they were in the previous year.

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