1

senior citizen income tax slab rate fy 2017-18

senior citizen income tax slab ratesenior citizen income tax slab rate has changed a little bit in the financial year 2017-18.

We will discuss in depth the changes that took place in new Income tax slab rate for senior citizen fy 2017-18.

Firstly we talk of Income tax slab  for senior citizen ay 2018-19 having age from 60 yrs to less than 80 yrs for fy  2017-18.

For your kind information,there is no tax for all senior citizen having income less than or equal to rs 300000 after availing saving under section 80C. In other words we can say income tax exemption slab for senior citizens is rs 3 lakhs.

It can be called as income tax relaxation for senior citizens.

It is very important to note here that you should deduct your saving under section 80C before calculating your tax.

Tax rate 5% on net income:

Further If your annual income is 5 lakh or less, after deducting your saving under section 80C upto rs 150000,then your remaining income is taxable at the rate of 5%.

And there will be a rebate of rs 2500 in case your net income is 3.5 lakh or less after deducting your saving u/s 80C.

20%Tax rate on net income.

Suppose your net income after deduction u/s 80C is 6 lakh,There will be no rebate of rs 2500 u/s 87A.

Further income after 5 lakh will be taxable at the rate of 20%.

30%Tax rate on net income.

Similarly if net taxable income is more than 10 lakhs,30% tax rate will be applicable.

How to calculate tax for Senior citizen

senior-citizen-income-tax-slab-rateTo make you understand properly we take relevant examples below:

Example-1: 

Suppose you have annual pension rs 500000.Also if your savings are rs 150000.Now your net taxable amount becomes rs 350,000.

now in this case we see the net taxable income is 3.5 lakh.So you will get rebate of rs 2500 in this case.

Also in this case rs 3 lakhs are tax free.And remaining rs 50,000 are taxable at the rate of 5%. that is rs 2500.

Now in this case net taxable income is 3.5 lakh so take rebate of rs 2500.Consequently your tax becomes 2500-2500=0.

So if a senior citizen has net taxable income is 3.5 lakh,his tax liabilitiy is zero.

Example-2: 

Let us suppose your net taxable income is 6 lakhs.

Now first 3 lakhs are tax free.So remaining 3 lakhs are taxable.

Here first 2 laks out of remaining 3 lakhs are taxable at the rate of 5%.And the remaining  1 lakh is taxable at the rate of 20%.

Thus In this case tax will become rs 15000+20000=35000.

So in this case there is no rebate as net taxable income is more than 3.5 lakhs.

Conclusion:

We see from above explanation that new tax slab rate for fy 2017-18 has only two notable changes.One is 5% tax rate and second is rs 2500 rebate u/s 87A.

Hence senior citizens have less to cheer about this new tax slab rates changes for fy 2017-18.

Famous Posts

Income Tax Relief Under Section 89

Income Tax Relief Under Section 89 On Salary Arear Income Tax Relief Under Section 89 is often ignored.In this article we will explain how you can claim tax relief u/s 89. If you are a govt. employee or salaried employee,you might have experienced one thing that you were given salary of previous years in current year.And we call such salary amount an Arear. It is import [...]

Continue reading»

How To Deal with intimation u/s 143(1)I

How To Deal with intimation u/s 143(1) intimation u/s 143(1)is such a section which is commonly misunderstood.Let us understand section 143(1) of income tax in detail. What is intimation u/s 143(1): When we e-file income tax return for any financial year,we often forget to check our previous Pending Demands.That is why we get Intimation u/s 143(1) and we are unable to [...]

Continue reading»

Check Income Tax Refund Status Online 2017-18

Income Tax Refund Status Online 2017-18 Any tax payer will get refund if he/she has paid tax more than his/her tax liability.For example if a tax payer has paid 20,000 Rs in financial year 2016-17,but his/her tax liability was Rs 15,000. Then in this case he/she will get Rs 5000 as refund.Now tax payer will get refund if he/she follows these points: Tax payer must [...]

Continue reading»

How to file  belated return after due date

 income tax return after due date/belated return belated return return after due date  is a return which we file after due date.Further,as you know every tax payer in INDIA has to file income tax return during every assessment year. And income tax department gives only few months to tax payers to  file their respective income tax return in a prescribed time which is 31st [...]

Continue reading»

4 ways to verify income tax return online 2017-18

  How to verify income tax return online: If you have filed your income tax return online,it is most important step to do now,That is to verify income tax return. Some times Tax payers file their income tax return online But they often forget to verify income tax  return . Consequently Their return gets invalid And they have to file their return again which att [...]

Continue reading»

is a professional blogger,teacher and income tax expert

Kuldeep Singh
 

is a professional blogger,teacher and income tax expert

Click Here to Leave a Comment Below 1 comments
Anil Kumar Bajaj - April 25, 2018

Please send me full calculation details for Senior Citizens for financial years 2017-18 with other available deductions under different sections.
Thanking you in anticipation

Reply

Leave a Reply: