Your Income Tax Slab depends on the various factors-


  • Your Status - An Individual, a HUF, a company, a firm, an AOP/BOI, local authority
  • Your quantum of Income & its Nature
  • Your Age - less than 60 years, more than or equal to 60 years but less than 80, more than or equal to 80 years

Let’s get the insights of the Income Tax Slabs for FY 2018-19 (AY 2019-20), FY 2017-18(AY 2018-19) & previous years:

Budget 2018

 

 

Income Tax Slabs for F.Y 2018-19 (AY 2019-20)

 

On 1st Feb 2018, Finance Minister Mr.Arun Jaitley tabled the Union Budget 2018-19 in the Parliament. In Budget 2018, the following tax provisions have been announced in relation to slabs of income tax tax slabs and rates :

No Change in the Personal Income Tax Rate :

Budget 2018 has kept the slabs and the slab rates of an individual unaltered.Moreover, no modifications has been done in surcharge and rebate u/s 87A.In simple words, the personal income tax slabs for 2018-19 would be same as of F.Y 17-18 as well. For detailed slab rates of F.Y 17-18, Click Here

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Introduction of Health and Education Cess @ 4% :

The earlier cesses (Primary Education Cess and the Secondary and Higher Education Cess ) @ 3% have been replaced by the new cess namely health and education cess for AY 2018-19 @ 4%. Thereby increasing your tax outgo by 1 %.This rise in the cess is done for all categories of assessees (individual, HUF, Firm , company etc.).

The impact of increase in cess can be understood with the help of below table:

Income (Rs.) Cess in F.Y 17-18 Cess in F.Y 18-19 Increase in Liability
If your income is Rs. 25 Lakhs 16875 22500 5625
If your income is Rs. 8 lakhs 2175 2933 725
If your income is 5 lakhs 375 500 125

However, the increase in the tax liability can be further reduced by availing the benefit of Standard Deduction of Rs. 40,000 which has been reintroduced in F.Y 18-19. Standard Deduction has come in lieu of transport allowance and medical reimbursement.

 

Now, Let’s see the impact of Standard Deduction on our Cess Liability in F.Y 18-19:

Income (Rs.) Cess in F.Y 17-18 Cess in F.Y 18-19 Increase in Liability
If your income is Rs. 25 Lakhs 16567 22020 5453
If your income is Rs. 8 lakhs 1970 2580 610
If your income is 5 lakhs 324 420 96

Note : In the above calculation, benefit of Rs. 34200 (Transport and Medical Reimbursement) has been provided in F.Y 17-18 and 40,000 standard deduction in F.Y. 18-19.

 

Change in the corporate taxation

A further relief has been provided to micro, small, and medium scale enterprises in Budget 2018. Companies with a turnover of less than Rs 250 crores in FY16-17 would be required to pay tax at 25 percent in FY18-19.However, all other companies shall pay the tax @ 30%.

For F.Y.2018-19( A.Y. 2019-20) the income tax slab for Indian Company :

Total Turnover or Gross Receipts (Rs.) Rate of Income Tax
Amount does exceed Rs.250 crore, in the previous year 2016-17 25%
Amount exceeds Rs.250 crore 30%
Add: Add: Surcharge and Health & Education Cess
Want to calculate your tax liability for the year 2018-19 ? Click here

Latest Income Tax Slab Rate for the F.Y. 2017-18 (A.Y. 2018-19) are:

 

I. Income Tax Slab for Indian Individuals

 

 

Income Tax Slab for Individuals less than 60 years for F.Y. 2017-18 ( For Male)

Income Slab(s) Income Tax Rate for AY 2018-19 (F.Y. 2017-18)
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A
Add: Surcharge and EC & SHEC

Income Tax Slab for Individuals less than 60 years for F.Y. 2017-18 ( For Female)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A
Add: Surcharge and EC & SHEC

Income Tax Slab for Individuals more than or equal to 60 years but less than 80 years known as Senior Citizens for F.Y. 2017-18 (Both Male and Female)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 3,00,000 Nil
From 3,00,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A
Add: Surcharge and EC & SHEC

Income Tax Slab for Individuals more than or equal to 80 years known as Super Senior Citizens For F.Y. 2017-18 (Both Male and Female)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 5,00,000 Nil
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC
How to Calculate Income Tax? Click here

 

II. Income Tax Slabs For Non-Residents

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

Please note : Rebate u/s 87A and Age-wise slab rate as discussed above in case of resident individual are not available to Non-Residents.

III. Income Tax Slabs For Hindu Undivided Family(HUF)

Income Tax Slab for AY 2018-19 for HUF (F.Y. 2017-18)

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

IV. Income Tax Slabs For Body of Individuals(BOI)

IncomeTax Slab for BOI for F.Y. 2017-18

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

V. Income Tax Slabs For Association of Person(AOP)

Income Tax Slab for AOP for F.Y. 2017-18. Mention below below AOP income tax rates 2018-19

Income Slab(s) Income Tax Rate for F.Y. 2017-18
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 5%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

VI. Income Tax Rate for Firms and LLP

A firm /LLP is taxable at flat rate of 30 percent for the F.Y. 2017-18 (A.Y. 2018-19).
Add: Surcharge and EC & SHEC

VII. Income Tax Rate for Indian Company

For F.Y.2017-18( A.Y. 2018-19) the income tax slab for Indian Company. Mentioned below is the income tax rate for AY 2018-19 for companies.

Total Turnover or Gross Receipts (Rs.) Rate of Income Tax
Amount does exceed Rs.50 crore, in the previous year 2015-16 25%
Amount exceeds Rs.50 crore 30%
Add: Surcharge and EC & SHEC

VIII. Income Tax Rate for Foreign Company

A foreign company is taxable at flat rate of 40 percent for the F.Y. 2017-18 ( A.Y. 2018-19).
Add: Surcharge and EC & SHEC

IX. Income Tax Rate for Co-operative Societies

For F.Y.2017-18( A.Y. 2018-19 ) the new income tax slab 2018-19 for co-operative society

Income (Rs) Rate of Income Tax
Upto 10,000 10%
From 10,001-20,000 20%
Above 20,000 30%
Add: Surcharge and EC & SHEC

X. Income Tax Rate for Local Authorities

Local authorities are taxable at flat rate of 30 percent for the F.Y. 2017-18( A.Y. 2018-19).
Add: Surcharge and EC & SHEC

Surcharge : The amount of income-tax shall be increased by a surcharge at the rate specified in the table, where total income exceeds the specified amount:

Surcharge Rates for 0-Rs.50 lakh Rs.50 lakh - Rs.1 crore Rs.1 crore - Rs.10 crore Above Rs.10 crore
Individual(Men, Female, NRI) /HUF /AOP /BOI /other Artificial Juridical person Nil 10% 15% 15%
Firm/Co-Operative Society/local authority Nil Nil 12% 12%
Domestic Company Nil Nil 7% 12%
Foreign Company Nil Nil 2% 5%

EC & SHEC

Education Cess(EC) : The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at 2 percent of income tax and surcharge.

Secondary & Higher Education Cess(SHEC) : The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at 1 percent of income tax 2018-19 and surcharge.

Rebate under Section 87A : Section 87A of the Act states that if a resident individual's total income does not exceed Rs. 3.5 lakhs then the individual will get benefit of rebate. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.

Prior to the union budget 2017, it was on the taxable income up to INR 5 lakh and the benefit was of Rs. 5000/-.


What are the Income Tax Slab for F.Y. 2016-17?

 

For F.Y. 2016-17 ( A.Y. 2017-18) the Income Tax Slab for various persons-

I. Income Tax Slab for Indian Individuals

 

 

Income Tax Slab for F.Y.2016-17 for individuals (Both Male & Female) below the age of 60 years:

Income Slab(Rs.) Income Tax Rate for F.Y. 2016-17
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A
Add: Surcharge and EC & SHEC

Income Tax Slab for F.Y.2016-17 for individuals (Both Male & Female) more than or equal to 60 years but less than 80 years

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 3,00,000 Nil
From 3,00,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Less: Rebate under Section 87A
Add: Surcharge and EC & SHEC

Income Tax Slab for F.Y.2016-17 for individuals (Both Male & Female) 80 year or more than 80 years

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 5,00,000 Nil
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

II. Income Tax Slab for F.Y.2016-17 for NRI's

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

III. Income Tax Slabs for F.Y. 2016-17 for HUF/AOP/BOI

Income Slab(s) Income Tax Rate for F.Y. 2016-17
Upto 2,50,000 Nil
From 2,50,001- 5,00,000 10%
From 5,00,001-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge and EC & SHEC

IV. Income Tax Rate for Firms/ LLP/Indian Company/Local Authority

Income tax would be at a flat rate of 30 percent for the F.Y. 2016-17 (A.Y. 2017-18).
Add: Surcharge and EC & SHEC

V. Income Tax Rate for Foreign Company

A foreign company is taxable at flat rate of 40 percent for the F.Y. 2016-17 (A.Y. 2017-18).
Add: Surcharge and EC & SHEC

VI. Income Tax Rate for Co-operative Societies

For F.Y.2016-17, A.Y. 2017-18 the income tax slab for co-operative society

Income (Rs) Rate of Income Tax
Upto 10,000 10%
From 10,001-20,000 20%
Above 20,000 30%
Add: Surcharge and EC & SHEC

Notes:

Surcharge : The amount of income-tax shall be increased by a surcharge at the rate specified in the table, where total income exceeds the specified amount:

Surcharge Rates for 0-Rs.1 crore Rs.1 crore- Rs.10 crore Above Rs.10 crore
Individual(Men, Female, NRI)/HUF /AOP /BOI /other Artificial Juridical person Nil 15% 15%
Firm/Co-Operative Society/local authority Nil 12% 12%
Domestic Company Nil 7% 12%
Foreign Company Nil 2% 5%

EC & SHEC

Education Cess(EC) : The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at 2 percent of income tax and surcharge.

Secondary & Higher Education Cess(SHEC) : The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at 1 percent of income tax and surcharge.

Rebate under Section 87A : Section 87A of the Act states that if an individual's total income does not exceed Rs. 5 lakhs then the individual will get benefit of rebate. The amount of rebate shall be 100% of income-tax or Rs. 5,000, whichever is less.


 

What has changed in the Income Tax Slab in F.Y. 2017-18 in comparison to F.Y. 2016-17?

The changes in Income Tax Slab in F.Y. 2017-18 are-

  • Income Tax Slab Reduced : New Tax slab rates for all resident individuals, NRIs, HUF, AOP, BOI and Artificial juridical persons reduced from 10% to 5%.
  • Reduction in relief under section 87A : The rebate under section 87A reduced.In F.Y.2017-18, rebate of Rs.2,500 is available to resident individuals whose total income does not exceed Rs.3,50,000. Earlier,Section 87A provided a relief up to Rs.5,000 to a resident individual if his total income did not exceed Rs.5,00,000.
  • Surcharge on income above Rs.50 lakhs : For F.Y. 2016-17 surcharge used to be there when income exceeded Rs.1 crore in case of an individual, HUF, AOP, BOI or artificial juridical person. For F.Y. 2017-18, the surcharge has become 10% on the income of individual exceeding 50 lakhs but less than 1 crore.
Budget 2017 and 2018 - Calculate impact on You! Click Here

I am salaried employee, which income tax slab is applicable on me?

For a salaried employee the income tax slab for individuals will be applicable.Choose the correct table according to your age.Please note there is no difference in the tax slab based on gender.


Which income tax slab rates would be applicable if I am filing my Income Tax Return for F.Y. 2016-17?

For calculating your income tax rate for F.Y. 2016-17, you need to check the Income Tax Slab for F.Y. 2016-17.


How to calculate my Income Tax amount from the Income Tax Slab?

Let us take example of Ms. Ruchi, age 29 years with an income of Rs.10,50,000, income tax deduction under section 80C Rs.150000 to understand how to calculate the income tax amount for F.Y 17-18.

First we will check the applicable income tax slab, in her case the first slab for individuals less than 60 years would be applicable.
Her income to be considered for calculating the Income tax amount =
Total Income - Income Tax Deductions
10,50,000 - 1,50,000 = 9,00,000

Now,

Income (Rs.) Income Tax Rates Tax Calculation Income Tax Payable(Rs.)
Upto 2,50,000 Nil 0 0
2,50,000-5,00,000 5% 5% of 2,50,000 12,500
5,00,000- 10,00,000 20% 20% of 4,00,000 (9,00,000-5,00,000) 80,000
TOTAL 92,500

Calculation of total amount of tax payable

Income Tax Amount Rs, 92,500
Add :[email protected]% on Income Tax Rs. 1,850
Add: [email protected]% on Income Tax Rs. 925
Total Income Tax Payable Rs. 95,275
I want to how much tax will be payable on my income Click Here

 

Conclusion:

The current income tax slabs 2018-19 are for anyone filing their Income Tax Return in 2018 i.e. for F.Y.2017-18 (A.Y 2018-19). After reading this article, you must have understood that your ITR slab AY 2018-19 doesn’t just depend on your income. It also depends on your age , status and what all deductions and exemptions you have taken. Deductions and exemptions can knock you into a lower tax slab, reducing your tax liability (or increasing the size of your tax refund) in the process.

That’s why it’s in your interest to make sure that you’re taking advantage of all the income tax provisions for which you’re eligible, whether you use tax preparation software, seek help from a CA or go the DIY route on Income Tax portal.

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