Income Tax Slab Rate Change 2017-18:
Income Tax Slab rate has changed for Financial year 2017-18 and in today’s article we will discuss it step by step.
So please read the full article
This article is special for salaried employees.
Some are going to get benefit and some are not in new income tax slab rate for financial year 2017-8.
Important Changes in 2017-18 FY:
Change-1:First change that has taken place is Tax rate.Which has reduced to 5% which was 10% in previous FY 2016-17.
If your income is less or equal to 5 lakh after deducting your saving us 80C.
Change-2:If your income is 3.5 lakh or less then you will get Rebate of Rs 2500 us 87A of income tax.
Change-3:If your income is more than 3.5 and more then you will not get relief of Rs 2500 under section 87A.
Tax slab rate for Individuals below 60 years age:
- For income 0-250,000, There is no tax.
- Income ranges 250001-500000, you will have to pay tax @ 5%.
- For income 500000-1000000 you will pay tax @ 20%
- For income 1000000 onwards you will have to pay Tax @ 30%.
- Further education cess remains at 3%.
How to calculate tax for persons below 60 yrs age:
Suppose you have income from slary is Rs 5 Lakh.Further your saving us 80C are Rs 150,000.Then your taxable income becomes Rs 3,50,000.Further 3,50,000-2,50,000=100000,
Hence @ 5% tax rate, your tax becomes 5/100*100000=Rs 5000.
now deduct Rs 2500 rebate us 87A as your income is 3,50,000.So your tax becomes 5000-2500=2500.Further Education cess @3% is rs 75.So add it to 2500 will become Rs 2575.
Also see the following Table: EXAMPLE-1
Similarly suppose your gross income is 6 lakh and your deduction us 80C are 150,000.Then net income will be Rs 4,50,000. now 4,50,000- 2,50,000=200000 so Tax @ 5% will become Rs 10,000.There will be no rebate us 87A here.As net income is Rs 4,50,000.
So education cess on 10,000 @3% is 300 Rs .Finally total tax becomes 10,300. See the following table as Example:
So you can easily find your income tax by using above examples.
How to calculate tax for persons above 60 yrs and less than 80 yrs age:
Here is an Example :
How to calculate tax for persons above 80 yrs or more:
Income Tax Slab rate for persons having age above 80 years and above we have described in the following Table:
Conclusion:Hence from the above article we have come to a conclusion that Income Tax Slab rates decreased a bit as compared to FY 2016-17.Further tax rebate is also Rs 2500,which is dissatisfying.Instead it is only on income Rs upto 3.5 lakh.