Income Tax Rate Slab For F. Y. 2017-18 ( A.Y. 2018-19)

As per Budget 2017 proposed by our Fin. Minister  on 01.02.2017 new revised income tax rates in case of every individual (other than those mentioned in (ii) and (iii) below or HUF family or every Association of Persons or Body of Individuals, whether incorporated or not, or every Artificial Judicial person referred to in Sub-clause (VII) of Clause (31) of Section 2 of the Act (not being a case to which any other Paragraph of Part III applies) are as under : -

BUDGET 2017-  PROPOSED
INCOME TAX RATE CHART FOR F.Y. 2017-18
INCOME LIMIT		TAX RATE		SAVE AMOUNT
		F.Y. 2016-17	F.Y. 2017-18
INDIVIDUAL TAX PAYERS     (BELOW 60 YEARS)	UPTO 2.5 LAKH	NIL	NIL	NIL
	2.5 LAKH – 5 LAKH	10%	5%	12500
	5 LAKH – 10 LAKH	20%	20%	12500
	10 LAKH - ABOVE	30%	30%	12500

In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year -

BUDGET 2017-  PROPOSED
INCOME TAX RATE CHART FOR F.Y. 2017-18
INCOME LIMIT		TAX RATE		SAVE AMOUNT
		F.Y. 2016-17	F.Y. 2017-18
INDIVIDUAL TAX PAYERS     (BETWEEN 60 YRS – 80 YRS	UPTO 3.0 LAKH	NIL	NIL	NIL
	3.0 LAKH – 5 LAKH	10%	5%	10000
	5 LAKH – 10 LAKH	20%	20%	10000
	10 LAKH - ABOVE	30%	30%	10000

In the case of every individual, being a resident in India, who is of the age of 80 years or more at anytime during the previous years -

BUDGET 2017-  PROPOSED
INCOME TAX RATE CHART FOR F.Y. 2017-18
INCOME LIMIT		TAX RATE		SAVE AMOUNT
		F.Y. 2016-17	F.Y. 2017-18
INDIVIDUAL TAX PAYERS     (ABOVE 80 YRS	UPTO RS.5 LAKH	NIL	NIL	NIL
	5 LAKH – 10 LAKH	20%	20%	NIL
	10 LAKH - ABOVE	30%	30%	NIL

The amount of income tax computed in accordance with the preceding provisions of he Paragraph shall be increased by a surcharge at the rate of :-

(1) 10% of such Income Tax in case of a person having a total income exceeding Rs.50.00 Lakhs but not exceeding Rs.1.00 Crore.

(2) 15 % of such Income Tax in case of a person having a total income exceeding Rs.1.00 Crore.

*Rebate U/s 87A is applicable as earlier for those whose income is below Rs.5.00 Lakh.

From AY 2018-19, this rebate shall be available only for individuals having income up to Rs. 3,50,000/-

Further up to AY 2016-17, rebate u/s 87A was restricted to Rs. 2,000/- . 

Rebate was later increased to Rs. 5,000/- w.e.f. AY 2017-18. 

Now, w.e.f. AY 2018-19, rebate has been deflated to Rs. 2500/-.

It means, having regard to exemption limit of Rs. 2,50,000/-, tax could have bill NIL for Income up to Rs. 2,70,000/- up to AY 2016-17. 

For AY 2017-18, tax could be NIL on Income up to Rs. 3,00,000/-. 

For AY 2018-19, tax again would be NIL up to 3,00,000/-, because of tax rate being reduced to 5%.

Hence the reduction in tax rate by 5% has been compensated by reducing rebate u/s 87A.