Tax Slab 2017-18 Tax Slab AY 2018-19 Budget 2017 Tax Slab

New Income Tax Slab for FY 2017-18 (Tax Slab AY 2018-19) have been provided based on the Finance Budget introduced by the Hon’ble Finance Minister. While the Income Tax Slabs have been kept unchanged, some interesting changes have been made which will have an impact on the tax liability of Individuals. The Tax Slab for the next year is likely to be reduced more due to the introduction of the GST. Income Tax Slab from Budget 2018 is going to be one of the best in recent times. Below, we have provide the estimated Tax Slabs that will be introduced in the Budget 2018.

Details of Current Income Tax Slab 2017-18 (AY 2018-19)

Total Tax Slab Three
Rebate Rs.2,500
Surcharge Over 1 Crore

Likely Tax Slabs from Next Year (FY 2018-19 & AY 2019-20)

Nil Tax Rate Upto Rs.4,00,000
10% Tax Slab 4 Lakhs to 8 Lakhs
20% Tax Slab 8 Lakhs to 12 Lakhs
30% Tax Slab Above 12 Lakhs

Few Important Changes from Budget 2017-18

The existing rebate of INR 5,000 available for individuals with an income between INR 2,50,000 to INR 5,00,000 is reduced to INR 2,500. Also, the rebate will now be available only for individuals with an Income less than INR 350,000.

From FY 2017-18, Those with annual income between INR 50 lakh to INR 1 crore will be levied a surcharge of 10 per cent.

From FY 2017-18, The maximum amount of loss from house property which can be adjusted from any other head of income is restricted to INR 2 Lakhs.

Individuals Below 60 Yrs – Income Tax Slab 2017-18 (AY 2018-19)

Income Tax Slab Income Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 – Rs. 500,000 5% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Senior Citizens (60-80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)

Income Tax Slab Income Tax Rate
Income upto Rs. 3,00,000 Nil
Income between Rs. 3,00,001 – Rs. 500,000 5% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Super Senior Citizens ( above 80 yrs) : Income Tax Slab 2017-18 (AY 2018-19)

Income Tax Slab Income Tax Rate
Income upto Rs. 5,00,000 Nil
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

HUF Taxation – Income Tax Slab 2017-18 (AY 2018-19)

The term ‘Hindu undivided family’ has not been defined in the Income-tax Act. However, in general parlance it means an undivided family of Hindus. Creation of a HUF is a God-gifted phenomenon.

As soon as a married Hindu gets a child, a new HUF comes into existence. It is not at all necessary that every HUF must have joint property or family income. [R. Subramania Iyer v. CIT (1955) 28, ITR, 352]. However, to become an assessee under the Income-tax Act, there must be ‘income-yielding’ joint property of the family.

Firm Taxation – Income Tax Slab 2017-18 (AY 2018-19)

When a firm is assessed as such for any assessment year, it shall be assessed in the same capacity for every subsequent year if there is no change in the constitution of the firm or in the shares of partners as evidenced by the partnership deed on the basis of which assessment as a firm was first sought.

AMT – Income Tax Slab 2017-18 (AY 2018-19)

Where the regular income tax payable for a previous year by a person other than a company is less than the alternate minimum tax payable for such previous year then the adjusted total income shall deemed to be the total income of that person for such previous year and it shall be liable to pay income tax on such adjusted total income @ 18.5% plus education & SHEC @ 3%.

Upto Assessment Year 2012-13, Alternate Minimum Tax (AMT) was levied on limited liability partnerships (LLPs). However, no such tax was levied on the other form of business organisations such as partnership firms, sole proprietorship, association of persons, etc.

In order to widen the tax base vis-à-vis profit linked deductions, the provisions regarding AMT has been broaden to cover all persons other than a company, who has claimed deduction under any section (other than section 80P) included in Chapter VI-A under the heading “C – Deductions in respect of certain incomes” or under section 10AA, shall be liable to pay AMT.

AOP Taxation – Income Tax Slab 2017-18 (AY 2018-19)

Section 67A seeks to provide for the method of computing a member’s share in the income of an association of persons or a body of individuals, wherein the shares of the members are determinate, in the same manner as provided for in Sub-sections (1) to (3) of Section 67 for computing a partner’s share in a firm.

Co-operative Society : Income Tax Slab 2017-18 (AY 2018-19)

The income of a co-operative society is computed in the same manner as provided for other assessees. Further, the subsidy given by the government to a co-operative society for meeting managerial expenses and admission fee collected by the society is treated as revenue receipt and liable to tax. [Ludhiana Central Co-operative Consumers’ Stores Ltd. v. C.I.T. (1980) 122, I.T.R. 942].

Tax Slab FY 2015-16 For Men Below 60 Years Of Age

Income Tax Slab Income Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 – Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Tax Slab FY 2015-16 For Women Below 60 Years Of Age

Income Tax Slab Income Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 – Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Tax Slab FY 2015-16 For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax Slab Income Tax Rate
Income upto Rs. 3,00,000 Nil
Income between Rs. 3,00,001 – Rs. 500,000 10% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Tax Slab FY 2015-16 For Senior Citizens (Age 80 years or more)

Income Tax Slab Income Tax Rate
Income upto Rs. 5,00,000 Nil
Income between Rs. 500,001 – Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Conclusion : Income Tax Slab 2017-18 (AY 2018-19)

Until 2012, There used to be significant changes in the income tax slab rates with each Union budget.

However, for the last 3-4 years, the Income tax slabs haven’t changed much, except for the senior citizens and super senior citizens.

The same trend is likely to be followed for the upcoming tax slabs too.

10 COMMENTS