Income Tax Slab Rate For FY 2017-18/ AY 2018-19 – Is Your Budget 2017 Expectations Met?

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. You can easily download the income tax slab for AY 2017-18 PDF or income tax slab for FY 2016-17 PDF and compare the changes offline.

New income tax slab for FY 2017-18 for female, Male , Sr. Citizen

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.

Latest changes in income tax slab for 2017-18

So, finally the much awaited declaration of the year has just done on income tax. It was expected that this year there will be higher deduction on the base income tax slab. But it is not exactly happened. But still salaried class people can save some money.

Here is the latest Income Tax Slab Rate for FY 2017-18 & AY 2018-19 which has been disclosed by our FM Mr. Arun Jaitley on Budget 2017.

Individual tax payers & HUF (less than 60 years old) (both men & women)

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Income SlabTax Rate
Income up to Rs. 2,50,000*No Tax
Income from Rs. 2,50,000 – Rs. 5,00,0005%
Income from Rs. 5,00,000 – 10,00,00020%
Income more than Rs. 10,00,00030%
Surcharge:
10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore.
15% of income tax, where total income exceeds Rs. 1 crore.
Cess: 3% on total of income tax + surcharge.
* Income upto Rs. 2,50,000 is exempt from tax if you are less than 60 years old.

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Individual tax payers & HUF (60 years old or more but less than 80 years old) (both men & women)

Income SlabTax Rate
Income up to Rs. 3,00,000*No Tax
Income from Rs. 3,00,000 – Rs. 5,00,0005%
Income from Rs. 5,00,000 – 10,00,00020%
Income more than Rs. 10,00,00030%
Surcharge:
10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore.
15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
* Income up to Rs. 3,00,000 is exempt from tax if you are more than 60 years but less than 80 years of age.

Super senior citizens (80 years old or more) (both men & women)

Income SlabTax Rate
Income up to Rs. 2,50,000*No Tax
Income up to Rs. 5,00,000*No Tax
Income from Rs. 5,00,000 – 10,00,00020%
Income more than Rs. 10,00,00030%
Surcharge:
10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore.
15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income up to Rs. 5,00,000 is exempt from tax if you are more than 80 years old.

How Much Tax One can save as per Income Tax Slab 2017-18

As the base rate is changed only for income up to 5 lakh, so here is the example of how much money one can save after the latest changes in Income tax slabs. You can easily use any of the available income tax calculator online and find out the tax payable for next financial year as per the latest slab rates.

Annual Income <= 5 Lakh [Saving up to Rs 2575]

AY 2017-18 : Net tax payable (Including education cess) is Rs 5,150. But for Ay 2018-19: Net tax payable (Including education cess) is Rs 2,575. If the limit of Rs 1.5 lakh under Section 80C for investment is used fully, the tax would be zero for people with income of Rs 4.5 lakhs.

Annual Income > 5 Lakh [Saving Rs 12,500/- per person.]

People who have income more than Rs 5 lakh will get max saving of Rs 12,500 irrespective of higher tax bracket. But the surcharge & education cess may vary.

Annual Income > 1 Crore [Max saving up to Rs 14,806]

The relief can go up to a maximum of Rs 14,806 (with 15% surcharge) for those with income of over Rs 1 crore.

Proposed Income Tax Slabs 2017-18, AY 2018-19 in Budget 2017

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.

Income Tax Slab Rate FY 2016-17

0 – 2.5 Lakh
2.5 – 5 Lakh25,000 [10% tax]
5 – 10 Lakh1,00,000 [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 FY 2017-18

This is just a proposed calculation, for actual saving please check above.

0 – 4 Lakh
4 – 10 Lakh60,000 [10% tax]
10 – 20 Lakh2,00,000 [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 every year after the Budget declaration. 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. Do you think this Budget 2017 has delivered up to your expectations? Share your thoughts or expected income tax slab here by writing a comment below. Are we going forward to a nation with zero income tax?

Income Tax Slab Rate For FY 2017-18/ AY 2018-19 – Is Your Budget 2017 Expectations Met?
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