Government of India has increased the basic personal income tax exemption limit from Rs. 250,000 to Rs. 250,000 for Financial Year 2017-2018 and Assessment Year 2018-2019. The new income tax rates or income tax slabs are effective from April 01, 2017.
Personal Income Tax Rates in India for the Financial Year 2017-2018 and Assessment Year 2018-2019
New Delhi (Delhi, India), August 12, 2018
Indian Government Ups Basic Personal Income Tax Exemption Limit from Rs. 250,000 to Rs. 250,000
The Government of India has increased the basic personal income tax exemption limit from Rs. 250,000 to Rs. 250,000 for the Financial Year 2017-2018 and Assessment Year 2018-2019.
The new income tax rates or Income tax slabs are applicable for the incomes earned or generated from April 01, 2017 to March 31, 2018.
Mr. Arun Jaitley, the Finance Minister of India, announced the new personal income tax slab rates while presenting the Union Budget of India, also called the Indian General Budget, on Wednesday, February 01, 2017 in New Delhi.
Here are the personal income tax slab rates for calculating your income tax for the Financial Year 2017-2018 (Assessment Year 2018-2019).
I. Income Tax Slabs for the Individual (Male or Female Below 60 Years Age) for the Assessment Year 2018-2019
1. Income Tax Slab: Rs. 0 to 250,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 250,001 to 500,000 – Income Tax Rate Payable: 5%
3. Income Tax Slab: Rs. 500,001 to 1,000,000 – Income Tax Rate Payable: 20%
4. Income Tax Slab: Rs. 1,000,001 and above – Income Tax Rate Payable: 30%
Note: Tax Relief Under Section 87A of IT Act – In case of a tax payer, having total income not exceeding Rs. 350,000 in the Financial Year 2017-2018, income tax chargeable on the income or Rs. 2,500, whichever is less.
II. Income Tax Slabs for the Senior Citizen (Male or Female 60 to 80 Years Age) for the Assessment Year 2018-2019
1. Income Tax Slab: Rs. 0 to 300,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 300,001 to 500,000 – Income Tax Rate Payable: 5%
3. Income Tax Slab: Rs. 500,001 to 1,000,000 – Income Tax Rate Payable: 20%
4. Income Tax Slab: Rs. 1,000,001 and above – Income Tax Rate Payable: 30%
Note: Tax Relief Under Section 87A of IT Act – In case of a tax payer, having total income not exceeding Rs. 350,000 in the Financial Year 2017-2018, income tax chargeable on the income or Rs. 2,500, whichever is less.
III. Income Tax Slabs for the Super Senior Citizen (Male or Female Above 80 Years Age) for the Assessment Year 2018-2019
1. Income Tax Slab: Rs. 0 to 500,000 – Income Tax Rate Payable: Nil
2. Income Tax Slab: Rs. 500,001 to 1,000,000 – Income Tax Rate Payable: 20%
3. Income Tax Slab: Rs. 1,000,001 and above – Income Tax Rate Payable: 30%
Surcharge:
10% of the Income Tax, where taxable income of an individual is Rs. 5,000,001 to 10,000,000. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 50 lakhs by more than the amount of increase in taxable income.
15% of the Income Tax, where taxable income of an individual is 10,000,001 or above. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.
Education Cess:
A 3% cess (i.e. Primary Education Cess: 2% + Secondary and Higher Education Cess: 1%) is payable on the total of Income Tax amount and Surcharge.
Calculation of an Individual’s Age and Applicable Income Tax Rates
The normal income tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the income tax rates will be same irrespective of his or her age.
For the purpose of ascertainment of the applicable income tax slab, an individual is classified as follows:
(1) Resident individual below the age of 60 years (i.e. he or she had born on or after April 01, 1958).
(2) Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years (i.e. he or she had born during April 01, 1938 to March 31, 1958).
(3) Resident individual of the age of 80 years or above at any time during the year (i.e. he or she had born before April 01, 1938).
(4) For a non-resident individual, the income tax rates will be same irrespective of the age.
Union Budget of India 2017-2018 – Minister of Finance’s Speech
Ministry of Finance, Government of India – Finance Minister’s Budget Speech for Financial Year 2017-2018
