Income tax slabs for individuals for the financial year 2017-18.

For the financial year 2017-18, the slab rate rate prescribed was-

1. For men/women Below the age of 60 Yrs- Rs. 2,50,000
2. For men/women above or the age of 60 Yrs but below than 80 Yrs - Rs. 3,00,000
3. For men/women above or the age of 80 Yrs  - Rs. 5,00,000

Income tax rates for financial year 2017-18

Upto Rs. 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%

These slab are the same for the financial year 2017-18.

Ex- Lets understand the slab limits and tax payable with the help of an example-

If an individual mohan is a salaried employee and has income of say Rs. 12,50,000. Then his tax will be calculated as under

Upto Rs. 2.5L no income tax shall be payable.

For next Rs. 2,50,000 income tax shall be payable @ 5%. Therefore, tax levied from 2,50,001-5,00,000 i.e., on Rs. 2,50,000 shall be Rs. 12,500.

From 5,00,001-10,00,000 income tax shall be payable @20%. Therefore, tax shall be payable of Rs. 1,00,000.

Above Rs. 10,00,000 tax shall be payable @ 30%. Therefore, tax shall be paid

Rs.2,50,000* 30%  = Rs. 75,000.

Therefore total tax payable by mohan comes to Rs. (12,500+1,00,000+75000)= Rs. 1,82,500.

Further, surcharge shall be levied on the income of such individual if total income exceed Rs. 50 lakhs.