Income Tax Slabs & Rates Financial Year 2017-18 (Assessment Year 2018-19)
Revision in Tax Rates was announced in the Budget 2017 for the next Financial Year. The chart above shows the latest Tax rates applicable for the FY 17-18 (Assessment Year 2018-19). Also refer to the points discussed below, explaining in details about the applicability of Cess and Surcharge on Taxable Income. The exemption limit for Senior Citizens has also been discussed. Please also read about the Tax Liability in the Financial Year 2017-18 in the link provided below.
*Tax Rebate of 10% (Rs 2500/- maximum) is available under Sec 87A to individuals whose Taxable Income is in the range of Rs 2,00,001-3,50,000/-. No Rebate is available on annual Income above Rs 3,50,000/-. This effectively implies that individuals with annual income of Rs 3,00,000 will have zero tax liability. Whereas, Individuals with an annual income of Rs 3,50,000 will have a tax liability of Rs 2,575/-.
Tax Payers may reduce their Tax Liability further by availing Deductions available under Chapter VI-A of the Income Tax Act (U/S 80C,D,E etc). I will post a separate article covering the same.
**Surcharge of 10% will be applicable on Income between Rs 50 lacs to 1 crore.
Surcharge of 15% on Income exceeding 1 crore.
Education Cess of 2% and Secondary Higher Education Cess of 1% (Total 3%) is additionally payable on Total Income Tax and on Surcharge if applicable.
Individual Residents who fall in the age bracket of 60-80 years (Senior Citizen) the exemption on Taxable Income is upto to Rs 3,00,000/-. For Income above the exemption limit, normal tax rates will be applicable.
Individual Residents who are above 80 yrs of age (Super Seniors Citizens) the exemption on Taxable Income is upto Rs 5,00,000/-. For Income above the exemption limit, normal tax rates will be applicable.
Deductions available under various Sections of Income Tax Act for individuals would be discussed in the upcoming post on Tax Planning for the Financial Year 2017-18.