Income Tax Slab For FY 2017-18

     

Income Tax Slab For FY 2017-18

(Assessment Year 2018-19)

Today on 01/02/2017 the Finance Minister Shri Arun Jaitley presented the union budget for the F.Y. 2017-18 and as expected after the Demonetisation, For AY 2018-19 (FY 2017-18), the Income Tax Slabs have not been changed, only some relief has been provided in the slab of Rs.2.5 lacs to Rs.5 lacs. 

The Income Tax Slab Rates can be divided in the following three categories

1.      Individuals & HUF

2.      Co-operative Society

3.      Firms, Local Authority & Domestic Company

1.     For Individuals & HUF :

S. No.	Income Tax Slabs	Individual below the age of 60 years and HUF	Individual age of 60 years or more but less than 80 years	Individual age of 80 years or more
1	If Taxable Income is Upto Rupees 2.5 lacs	NIL	NIL	NIL
2	If Taxable Income is More than 2.5 lacs upto 3 lacs	5%	NIL	NIL
3	If Taxable Income is More than 3 lacs upto 5 lacs	5%	5%	NIL
4	If Taxable Income is More than 5 lacs upto 10 lacs	20%	20%	20%
5	If Taxable Income is Above  10 lacs	30%	30%	30%

Surcharge : For the F.Y.2017-18 rate of surcharge is 15% if the annual income exceeds rupees one crore in a year and surcharge is 10% if the annual income is above 50 lakh and upto 1 crore.

Cess : Education Cess @ 2% and Secondary and Higher Education Cess @ 1% shall be levied on the income tax calculated as per the tax rates given in the above table plus on surcharge if applicable.

2.   For Co-operative Society :

Income Tax Slabs	Income Tax Rates
If the Total Income is less than Rs. 10,000	10%
If the Total Income is more than Rs. 10,000 but less than Rs. 20,000	20%
For the Income exceeding Rs. 20,000	30%

3.  For Firms, Local Authority and Domestic Company :

Income Tax Slab Rates wont apply in this case and Tax @ 30% flat shall be computed on the Total Income. In case the total turnover of the company is less than 50 crores in a year than tax rate shall be reduced by 5% and effective tax rate shall be @25%. Surcharge shall not be levied on Income of Firms and Local Authorities but shall be levied on the Total Income Tax of Domestic Companies @ 5% provided that the Total Income of the Domestic Company exceeds Rs. 1 Crore.

Comparison of Income Tax Rates for FY 2017-18 Vs. FY 2016-17

The income tax slabs for all category of tax payers remain unchanged for the F.Y. 2017-18 (A.Y.2018-19) as compared to F.Y 2016-17 (A.Y.2017-18). However the income tax rate for the slab 2.5 lakh to 5 lakh reduced from 10% to 5%.

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