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Income Tax Slab for FY 2017-18 and also Tax Slab AY 2018-19 have been provided based on the Finance Budget introduced by the Hon’ble Finance Minister. Tax Slabs will see 30% increase in exemption next year. Tax Slab for Senior Citizens is different to that of Tax Slab applicable for younger people. While the Income Tax Slab have been kept unchanged for AY 2017-18 and AY 2018-19, some interesting changes have been made which will have an impact on the tax liability of Individuals. The Tax Slab for the next year is likely to be reduced more due to the introduction of the GST. Income Tax Slab from Budget 2018 is going to be one of the best in recent times. Below, we have provide the estimated Tax Slabs that will be introduced in the Budget 2018.
Why will Income Tax Slab Limits will be increased next year:
As you might be aware, the next General Elections will be moved backward. It means, normally the elections are supposed to be held in May 2019.
However, the Central Government has asked the Election Commission to conduct them in December 2018 only.
So, the Upcoming Budget 2018 will be the last Budget for BJP Government to attract the voters.
Moreover, the Government Approval rating has seen coming down sharply in the recent months, due to slow financial growth, failure of the Demonitization policy and recent train accidents.
Keeping this mind, you will see all sorts of Income Tax benefits showered upon the Indian Public. The Income Tax Slabs will see an increase of 25-35%. Tax Deduction under Section 80C will also be likely increased by 40%. Scroll down to see likely IT Slabs from next year.
Income Tax Slab AY 2017-18
| Tax Slab for Individuals | Tax Rate |
|---|---|
| Upto 2,00,000 | Nil |
| 2,50,000-5,00,000 | 10% |
| 5,00,000-10,00,000 | 20% |
| Over 10,00,000 | 30% |
Senior Citizen Income Tax Slab AY 2017-18
| 0 – 3,00,000 | Nil |
| 3,00,000-5,00,000 | 10% |
| 5,00,000-10,00,000 | 20% |
| Over 10,00,000 | 30% |
Income Tax Slab for AY 2018-19
| Total Tax Slab | Three |
| Tax Slab Rebate | Rs.2,500 |
| Tax Slab Surcharge | Over 1 Crore |
Likely Tax Slabs from Next Year (FY 2018-19 & AY 2019-20)
| Nil Tax Rate | Upto Rs.4,00,000 |
| 10% Tax Slab | 4 Lakhs to 8 Lakhs |
| 20% Tax Slab | 8 Lakhs to 12 Lakhs |
| 30% Tax Slab | Above 12 Lakhs |
Few Important Changes from Budget 2017-18
The existing rebate of INR 5,000 available for individuals with an income between INR 2,50,000 to INR 5,00,000 is reduced to INR 2,500. Also, the rebate will now be available only for individuals with an Income less than INR 350,000.
From FY 2017-18, Those with annual income between INR 50 lakh to INR 1 crore will be levied a surcharge of 10 per cent.
From FY 2017-18, The maximum amount of loss from house property which can be adjusted from any other head of income is restricted to INR 2 Lakhs.
Individuals Below 60 Yrs – Income Tax Slab 2017-18 (AY 2018-19)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,001 – Rs. 500,000 | 5% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Senior Citizens (60-80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 3,00,000 | Nil |
| Income between Rs. 3,00,001 – Rs. 500,000 | 5% of Income exceeding Rs. 3,00,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Super Senior Citizens ( above 80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 5,00,000 | Nil |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Income Tax Calculator India
Below we have provided the extremely efficient Income Tax Calculator. This Calculator takes all the necessary data, like Payments made to Life Insurance Premium, Children Education Fee, Interest on Home Loan, Rent paid etc.
Details of Income Tax Slab for 2017-18
You must note that there are not many changes in the income tax slabs that of current year and that of the last year.
With respect to the senior citizens, the Tax Slab is still the same with basic exemption limit upto Rs.500,000.
However, with respect to Other Assessees, an additional rebate has been provided which would indirectly mean that tax slab is increased by Rs.50,000.
HUF Tax Slab
The term ‘Hindu undivided family’ has not been defined in the Income-tax Act. However, in general parlance it means an undivided family of Hindus. Creation of a HUF is a God-gifted phenomenon.
As soon as a married Hindu gets a child, a new HUF Tax Slabcomes into existence. It is not at all necessary that every HUF must have joint property or family income. [R. Subramania Iyer v. CIT (1955) 28, ITR, 352]. However, to become an assessee under the Income-tax Act, there must be ‘income-yielding’ joint property of the family.
Firm Tax Slab
When a firm is assessed as such for any assessment year, it shall be assessed in the same capacity for every subsequent year if there is no change in the constitution of the firm or in the shares of partners as evidenced by the partnership deed on the basis of which assessment as a firm was first sought.
AMT – Income Tax Slab 2017-18 (AY 2018-19)
Where the regular income tax payable for a previous year by a person other than a company is less than the alternate minimum tax payable for such previous year then the adjusted total income shall deemed to be the total income of that person for such previous year and it shall be liable to pay income tax on such adjusted total income @ 18.5% plus education & SHEC @ 3%.
Upto Assessment Year 2012-13, Alternate Minimum Tax (AMT) was levied on limited liability partnerships (LLPs). However, no such tax was levied on the other form of business organisations such as partnership firms, sole proprietorship, association of persons, etc.
In order to widen the tax base vis-à-vis profit linked deductions, the provisions regarding AMT has been broaden to cover all persons other than a company, who has claimed deduction under any section (other than section 80P) included in Chapter VI-A under the heading “C – Deductions in respect of certain incomes” or under section 10AA, shall be liable to pay AMT.
AOP Tax Slab
Section 67A seeks to provide for the method of computing a member’s share in the income of an association of persons or a body of individuals, wherein the shares of the members are determinate, in the same manner as provided for in Sub-sections (1) to (3) of Section 67 for computing a partner’s share in a firm.
Co-operative Society Tax Slab
The income of a co-operative society is computed in the same manner as provided for other assessees. Further, the subsidy given by the government to a co-operative society for meeting managerial expenses and admission fee collected by the society is treated as revenue receipt and liable to tax. [Ludhiana Central Co-operative Consumers’ Stores Ltd. v. C.I.T. (1980) 122, I.T.R. 942].
Tax Slab FY 2015-16 For Men Below 60 Years Of Age
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,001 – Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Tax Slab FY 2015-16 For Women Below 60 Years Of Age
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,001 – Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Tax Slab FY 2015-16 For Senior Citizens (Age 60 years or more but less than 80 years)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 3,00,000 | Nil |
| Income between Rs. 3,00,001 – Rs. 500,000 | 10% of Income exceeding Rs. 3,00,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Tax Slab FY 2015-16 For Senior Citizens (Age 80 years or more)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 5,00,000 | Nil |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Conclusion : Income Tax Slab 2017-18 (AY 2018-19)
Until 2012, There used to be significant changes in the income tax slab rates with each Union budget.
However, for the last 3-4 years, the Income tax slabs haven’t changed much, except for the senior citizens and super senior citizens.
The same trend is likely to be followed for the upcoming tax slabs too.
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