New Income Tax Slab 2017-18: Well, although it may take some time to disclose budget 2017-18, people started speculating what would be the upcoming income tax slab rate for 2017-18 financial year or assessment year 2018-19. Yes, like me many websites has already started sharing the expected income tax slab from various sources.
After demonetization, every salaried Indian is started dreaming of a tax free nation as the news of banking transaction tax is also in the air. And so far, these are not reality, you can consider it just a speculation or financial porn.
But, to your knowledge you should also know what is going on in the news and what is going to be in the income tax slab rates in India in coming days. It is expected that a huge change is going to be noticed in the upcoming budget 2017-18 and thus the list of expectations are also growing.
Proposed Income Tax Slabs 2017-18, AY 2018-19
Right now the information shared here is not at all official. This is an expected New Income Tax Slabs 2017-18 which has been collected from zeebiz.com website.
As per the proposal, the government likely to impose 10% tax on income between Rs 4 lakh to Rs 10 lakh in the new tax bracket. Currently, for the income exceeding Rs 2.5 lakh to Rs 5 lakh is liable for 10% tax.
For the income between Rs 10 lakh to Rs 15 lakh, the tax rate is likely to be 15% as per the new proposal. Presently, 20% is imposed on income between Rs 5 lakh to Rs 10 lakh.
Further, for the income between 15 lakh to Rs 20 lakh, 20% of tax will be charged. Currently, 30% tax rate is levied on income more than Rs 10 lakh.
Income tax for income over Rs 20 lakh may be fixed at 30%, the source said.
How much money one can save with this new proposed income tax slab 2017-18
I am considering a person with an annual income of rs 35 lakh to make this calculation understandable, if this proposed income tax slab is going to apply.
As per current Income Tax Slab Rate 2016-17
|0 – 2.5 Lakh||0|
|2.5 – 5 Lakh||25,000 [10% tax]|
|5 – 10 Lakh||1,00,000 [20% Tax]|
|10 Lakh +||4,50,000 [30% tax]|
Total Tax Paid : 5,75,000 [without considering any surcharge]
As per proposed Income tax Slab rate 2017-18
|0 – 4 Lakh||0|
|4 – 10 Lakh||60,000 [10% tax]|
|10 – 20 Lakh||2,00,000 [20% Tax]|
|30 Lakh +||1,50,000 [30% tax]|
Total Tax Paid : 4,10,000 [without considering any surcharge]. That means a saving of 1,65,000 which is simply massive. This is just a rough calculation to see how much one can save if the new income tax slab is going to implement. You can do your own calculation, as I don’t carry the responsibility of the accuracy of this calculation, it is just for education purpose.
I will be updating this page with the accurate income tax slab after the declaration of Budget 2016-17. If this income tax proposal become reality, this will be the remarkable day for every salaried person in India. The amount of money a person can save under 30% tax bracket will be huge. I have already shared the calculation above, hope that is useful.