Tax slab for the assessment year 2018-19

Income tax paid by the Indian is calculated on the basis of his/her Gross total income. The tax payable thereon is calculated considering the tax slabs which is announced by the government every year.

Income Tax Slab Rates for Financial Year 2017-18(Assessment Year 2018-19) are as follows.

Income Tax Slab For Individual Taxpayers & HUF (Less than 60 years of age)

 

Income SlabTax Rate

Income upto Rs. 2,50,000

NIL

Income from Rs 2,50,000-5,00,000

5%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

 

Surcharge: 10% of income tax, where the total income exceeds Rs.50 lakhs up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

Example: Let’s take an example, Lokesh who is 20 years old, had an annual total income of 12,00,000/- after various deductions in the financial year 2017-18.

Tax up to 250000 will be exempt in this case. On further 250000 tax would be 12500 (5% of 500000-250000), on further 500000 it would be 100000 (20% of 1000000-500000) and on the rest of Rs.200000 the tax will be 60000 (5% of 1200000-1000000).

The total tax ( not net and without surcharge and cess ) will be (on total income )  1,72,500 (0+12500+100000+60000).

 

Income Tax Slab For Senior Citizens (60 Years Old Or More But Less Than 80 Years Old)

 

Income slabTax Rate
Income up to Rs 3,00,000*No Tax
Income from Rs 3,00,000 – Rs 5,00,0005%
Income from Rs 5,00,000 – 10,00,00020%
Income more than Rs 10,00,00030%

 

Surcharge: 10% of income tax, where the total income exceeds Rs.50 lakhs up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

 

Income Tax Slab For Senior Citizens(80 Years Old Or More)

Income SlabTax Rate
Income up to Rs 2,50,000*No Tax
Income up to Rs 5,00,000*No Tax
Income from Rs 5,00,000 – 10,00,00020%
Income more than Rs 10,00,00030%

 

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

Please also note that there is also a tax rebate of up to Rs.2,500 for a taxable income up to Rs. 3.5 lakhs.

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INCOME TAX SLAB FOR DOMESTIC COMPANIES FOR FY 2017-18(AY 2018-19)

  • The tax rate for companies with an annual turnover of up to Rs 50 crore has been brought down to 25% from 30%.
  • Besides the above change, other rates remain same as were in the previous year. Please see the Income tax slab for domestic companies for FY 2016-17.

Although total income is taxable at income tax slab rates as aforementioned. Some incomes are taxed at special rates as follows.

 

NatureTax 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%
Short term capital gains on shares and equity mutual funds15%
Long term capital gains on shares and equity mutual fundsNil
Short term capital gains on debt mutual fundsAt Income Tax Slab rates listed above
Long term capital gains on debt mutual fundsAt 20% with indexation

Conclusion: This is the simplest way you can understand how much tax you have to pay! You can ask your questions in the comment section and we are always here to solve your questions.

Updated: April 19, 2017 — 4:17 am

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