Income Tax Slabs for FY 2017-18 (AY 2018-19)

Income Tax Slabs for FY 2017-18

Income Tax Slabs for FY 2017-18

Your income from salary, business or other income like income from fixed/recurring deposits etc are taxed as per income tax slabs. Budget 2017 has made slight changes to the tax slab rates:

  • Tax reduced from 10% to 5% for Income from Rs 2,50,000 – Rs 5,00,000
  • Rs 2,500 or 100% rebate in income tax (whichever is lower) for individuals with income below Rs 3.5 Lakhs u/s 87A
  • 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
  • For income above Rs 1 crore the surcharge of 15% remain

Income Tax Slabs:

There is NO separate tax slab for men and women. Earlier women used to have slight benefit over men in terms of lower taxes!

The tax slabs are determined on age of person. As of today there are 3 slab rates based on age:

  1. Below 60 years of age
  2. Senior Citizens (60 to less than 80 years of age)
  3. Very Senior Citizens (80+ years of age)

How much tax you Save from Budget 2017 Download FY 2017-18 Income Tax Calculator 

The table below gives the tax slab rates:

Income Tax Slab for HUFs & Individuals (below 60 years – for both Men & Women)

Income Slab Tax Rate
Income up to Rs 2,50,000 No Tax
Income from Rs 2,50,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
  • Surcharge:
    • 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
    • 15% surcharge on income tax if the total income exceeds Rs 1 crore
  • Education Cess: 2% cess on income tax including surcharge
  • Secondary and Higher Education Cess: 1% cess on income tax including surcharge
  • Rebate under Section 87A: Rs 2,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 3.5 Lakhs

Also Read: 25 Ways Budget 2017 Impacts Your Taxes and Investments

Income tax slab for senior citizens (60 years to less than 80 years old) (both men & women)

Income Slab Tax Rate
Income up to Rs 3,00,000 No Tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
  • Surcharge:
    • 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
    • 15% surcharge on income tax if the total income exceeds Rs 1 crore
  • Education Cess: 2% cess on income tax including surcharge
  • Secondary and Higher Education Cess: 1% cess on income tax including surcharge
  • Rebate under Section 87A: Rs 2,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 3.5 Lakhs

Income tax slab for Very senior citizens (80 years or more) (both men & women)

Income Slab Tax Rate
Income up to Rs 2,50,000 No Tax
Income from Rs 2,50,000 – Rs 5,00,000 No Tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
  • Surcharge:
    • 10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore
    • 15% surcharge on income tax if the total income exceeds Rs 1 crore
  • Education Cess: 2% cess on income tax including surcharge
  • Secondary and Higher Education Cess: 1% cess on income tax including surcharge

Income tax slab for Domestic Companies:

Company Turnover Tax Rate
Less than 50 crore 25%
More than 50 crore 30%
Surcharge:

  • 7% surcharge if the income is more than 1 crore but less than 10 crore
  • 12% surcharge if the income is more than 10 crore

Education Cess: 2% cess on income tax including surcharge

Secondary and Higher Education Cess: 1% cess on income tax including surcharge

Also Read: 25 Tax Free Incomes & Investments in India

Income tax slab for Partnership Firm:

A partnership firm (including LLP) income is taxable at 30%.

Surcharge: 12% surcharge on income tax if the total income exceeds Rs 1 crore
Education Cess: 2% cess on income tax including surcharge
Secondary and Higher Education Cess: 1% cess on income tax including surcharge

Capital Gains Tax Rates:

Some income related to capital gains are taxed at special rates as shown below:

Capital Gains Tax Rate
Short term capital gains from assets (Other than shares & mutual funds) At Income Tax Slab rates listed above
Long term capital gains from assets (Other than shares & mutual funds) 20% (+3% edu cess)
Short term capital gains on shares and equity mutual funds 15% (+3% edu cess)
Long term capital gains on shares and equity mutual funds NIL
Short term capital gains on debt mutual funds At Income Tax Slab rates listed above
Long term capital gains on debt mutual funds At 20% (+3% edu cess) with indexation

19 thoughts on “Income Tax Slabs for FY 2017-18 (AY 2018-19)

  1. Sir if i make savings in ppf amounting to 1.5L and apart from that i have 48000 as nps contribution. Can this amount of 48k be shown independently under Section 80CCD(1B) that allows additional benefit, whereas employers contribution is marked under section 80CC (2).

  2. Vinit Bansal says:

    Tax reduced for companies for turnover of 50 Cr. what about partnership firms.

  3. Sr citizens having income between 3.5-4lakh will have to pay more in AY2018-19 than2017-18.

  4. Sailaja Koneru says:

    Ants (BJP) do beautiful constructions step by step for future life, here people should support but normally becomes selfish because of no scams from BJP government.

    Snakes (Congress) utilize those constructions because of those selfish people votes for small things. Won’t bother about the country future.

    So India instead of changing its shape as Bharat to reach world number one position showing as developing country from last 70 years, even thou it is a leader forever.

    • This is a fiscally oriented article, please take your opinions and emotions to a blog.
      People are here to understand how the budget operates and how it is going to affect them.
      If you have insights on how the various challengers for the government are going to implement the budget and how it is going to affect us, then I would welcome you to write a more detailed article about who is doing what- but just not here.

  5. shrikant chetty says:

    firtst step in reducing tax load on public. well done BJP. GO AHEAD . WE ARE WITH YOU

  6. MOdi govt is minting money through this budget , this govt must be throwmn out from indian democracy

  7. The Budget is unpromising….The Government must step in to change the Finance Minister….

  8. A Meenakshisundaram says:

    Very accurate,informative and useful

  9. VIJAY PAL REDDY JUKAREDDY says:

    I am a strong BJP supporter. Jaitley can never match Chidambaram in changing social mood for tax compliance and broadening d base. No bold decisions. He is not suitable as FM in a cabinet lead by a dashing n daring path breaker like MODI. He appears to me like refined senior govt. employe who does tinkering job on the documents prepared by juniors.

  10. Ratikant Rath says:

    The limit under 87A has been reduced from 5 lakhs to 3.5 lakhs.Benefits of senior citizens above 60 has been with drawn.This should be reviewed.

  11. as it is expected BJP govt is running a business concern but not a govt.
    the person’s paying it is only 5% that too many of them are employees. instead of sqoozing the employees try to bring the defaulters into tax system. use the staff to check crores of property with some persons unaccounted.
    oil prices are dropping in the international market where as oil prices are shooting up in India
    tax exemption to middle class is the slogan in budget.who is the middle class.a clearly in govt an average salary ₹65000 per month.he has to pay about ₹ 70000 as tax.almost no change .there is no tax relief to him. so to say he is not middle class. he is aristocrat.
    BJP is master in gobbles propoganda.

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