There are different Income Tax Slabs & Rates for Financial Year(FY) 2017-18 or Assessment Year(AY) 2018-19 in India to find Income tax rate & deductions for different age slabs for men, women & senior citizens.
The basic tax brackets are detailed below:
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Rates of income-tax for those under 60 years of age |
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(1) |
where the total income does not exceed Rs. 2,50,000 |
Nil |
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(2) |
where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 |
5% |
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(3) |
where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 |
20% |
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(4) |
where the total income exceeds Rs. 10,00,000 |
30% |
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Rates of income-tax for Senior Citizens between 60 and 80 years |
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(1) |
where the total income does not exceed Rs. 3,00,000 |
Nil |
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(2) |
where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 |
5% |
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(3) |
where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 |
20% |
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(4) |
where the total income exceeds Rs. 10,00,000 |
30% |
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Rates of income-tax for Senior Citizens over 80 years |
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|
where the total income does not exceed Rs. 3,00,000 |
Nil |
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where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 |
Nil |
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where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 |
20% |
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where the total income exceeds Rs. 10,00,000 |
30% |
Note that before you start calculating your income tax you must subtract deductions and tax exemptions that you are eligible for.
After the subtraction above what remains is your taxable income. Now you need to subtract the minimum amount that is exempt from taxation.
For FY 2017-18 this amount is Rupees 2, 50,000 unless changed by the Finance Minister during the Budget Session of 2018 by the Finance Act.
Compute the rates of tax at the figures shown above. For example, if your salary is Rs. 4, 00,000, then subtract 2, 50,000 from this to get 1, 50,000. This is your taxable income.
From the amount of tax payable to the Income Tax Department as determined above, you are allowed to subtract either 100% of the amount or Rs. 2500, whichever is less according to the rebate available under Section 87A.
The above rebate is not available if the tax payee earns income greater than 3, 50,000 in FY 2017-18.
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Surcharge for Individuals or HUFs: |
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If Annual Income > 50 lakh but < 1 crore |
10% of Income tax |
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If Annual Income > 1 crore |
15% of income tax |
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*In both cases above, the income tax + surcharge cannot be more than the difference between the yearly income and the minimum limit for this portion. |
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Cess calculated on Income Tax + Surcharge |
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Education Cess |
2% of Income tax + Surcharge |
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Secondary and Higher Education Cess |
1% of Income tax + Surcharge |
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**These cesses are applicable to all taxpayers |
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Comments
4 comments
Great work by ITR team it really nice to explaing everything about taxes.
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Thanks for this this really help me alot.This blog is really helpfull for us to know more about ITR. This tell us everything that we should know about ITR. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. It's really great that u take initiative to tell people about this and your way of representation of thought is really good.We can understand out problem very easily and get our answers faster. This is like a algorithm to fill taxes becaute it tell us step by step how we should fill taxes and yes it is also easy to understand. It tell breifly and accurately about taxes. Great work by ITR team it really nice to explaing everything about taxes.
Excellent team work by ITR. I found this blog to be really helpful to know more about income tax slabs for this financial year.these simple words will be helpful for each and every person to go through it.It tell breifly and accurately about taxes.The Income Tax Department charges a different rate of tax for different ranges of income.here it describes all those different categories in a detailed and tabled manner which make it understandable by everyone .
thank you
Great work All India ITR, Thanks for providing such an amazing information in such a manner that is very easy to understand to us and moreover the tables made this aricle very informative there is one doubt in my mind that what will be the rate if the income tax & surcharge is more than the difference between the yearly income?
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