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Income tax slab rates for the year financial year 2017-18.
Income tax slab rates for the year financial year 2017-18.
The finance minister of the country presented the Union Budget 2017-18 on 1st February 2017. Earlier this date used to be last day of February of the year. Common people had a lot of expectation from this budget, one of which was mist surrounding the slab rates. There were also pre-budget rumours that the basic exemption limit shall be raised from Rs. 2.5L to Rs. 4 L.
Rates of income-tax in respect of income liable to tax for the assessment year 2017-18.
- No change in basic exemption limit.
- The tax rate for individual, HUF, AOP, BOI or artificial jurisdictional person in the income bracket of Rs.2.5 lakhs (Rs.3 lakhs in case of individual of the age of 60 yrs or more but less than the age of 80 yrs) to Rs.5 lakhs reduced to 5% from the present rate of 10%.
- Rebate of income-tax u/s 87A for an individual having total income not exceeding Rs.5 lakhs is reduced to Rs.3.5 lakhs and the amount of tax which was Rs.2,000/- (for AY 2017-18, earlier it was Rs.5,000/-) is to be allowed at Rs.2,500/-.
- Surcharge @ 10% of tax payable is levied on individuals, HUF, AOP, BOI or artificial jurisdictional person whose total income is above Rs.50 lakhs but does not exceed Rs.1 crore.
- In the case of domestic companies, the rate of income tax is reduced to 25% if total turnover or gross receipts of PY 2015-16 does not exceed Rs.50 crore. The benefit of lower tax is not available to other business entity other than a domestic company.
- The Taxation Law (Second Amendment) Act, 2016 has w.e.f. 01.04.2016 has levied surcharge @ 25% on income chargeable to tax u/s 115BBE i.e., on unexplained cash credit.
(I). Individual, Hindu undivided family, an association of persons, body of individuals, artificial juridical person.
(i) The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below) or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical 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:—
Up to Rs. 2,50,000 …………………………………..Nil
Rs. 2,50,001 to Rs. 5,00,000 …………………….5%
Rs. 5,00,001 to Rs. 10,00,000 ………………….20%
Above Rs. 10,00,000 ……………………………….30%
(ii) 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,—
Upto Rs.3,00,000…………………………………… Nil
Rs. 3,00,001 to Rs. 5,00,000 …………………….5%
Rs. 5,00,001 to Rs. 10,00,000 ………………….20%
Above Rs. 10,00,000 ………………………………..30%
(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—
Upto Rs.5,00,000…………………………………… Nil
Rs. 5,00,001 to Rs. 10,00,000 ………………….20%
Above Rs. 10,00,000 ………………………………..30%
Surcharge at the rate of,—
- 10% of such income-tax in case of a person having a total income exceeding fifty lakh rupees but not exceeding one crore rupees; and (marginal relief allowed )
- 15% of such income-tax in case of a person having a total income exceeding one crore rupees. (marginal relief allowed)
