Income Tax Slabs/ Rates (Individuals/ HUFs) for PY/ FY 2017-18 (AY 2018-19)

Budget 2017-18: Proposed Income Tax Slabs/ Rates for Individuals and HUF in respect of FY 2017-18 (AY 2018-19)

Income Tax Slabs/ Rates for Individuals and HUFs, proposed to be applicable during FY 2017-18/ PY 2017-18 (AY 2018-19), as per the direct tax proposals of the Finance Bill 2017/ Budget 2017-18, are as under:

Income Tax Slabs
(Rates in %)
Very Senior Citizens 
(Amount in Rs.)
Senior Citizens
(Amount in Rs.)
All Other Individuals and HUFs
(Amount in Rs.)
NilUpto 500,000Upto 300,000Upto 250,000
5300,001 to 5,00,000250,001 to 5,00,000
20500,001 to 1,000,000500,001 to 1,000,000500,001 to 1,000,000
30Above 1,000,000Above 1,000,000Above 1,000,000

Note:

Total Tax Liability

1. Income Tax Rates are mentioned in each slab, however total tax liability shall include the amount of tax payable upto previous slab(s), plus applicable education cess and surcharge.

Tax rates for the income slab of Rs. 2,50,000 to Rs. 5,00,000 are proposed to be reduced from 10% to 5%. Thus a maximum benefit of Rs. 12,500 plus applicable Education Cess shall be available to all individuals and HUFs.

Education Cess and Surcharge

2. Income tax calculated in aforesaid manner for Individuals and HUFs for AY 2018-19 (corresponding to FY 2017-18/ PY 2017-18) is subject to applicability of education cess of 3% and surcharge of 10% (if total income is above Rs. 50 lacs) or 15% (if total income is above Rs. 1 crore). It may be noted that surcharge of 10% on income above Rs. 50 lacs is newly proposed, i.e. applicable from AY 2018-19.

Marginal Relief on Surcharge

3. Marginal Relief in Surcharge on Income Tax can be claimed by Individuals and HUFs whose total income has exceeded Rs. 50 Lacs or Rs. 1 crore marginally.

Tax Credit/ Tax Concession u/s 87A

4. Resident Individuals whose total income is upto Rs. 3,50,000 during the AY 2018-19 (reduced from Rs. 5,00,000 applicable for AY 2017-18) can avail Tax Credit under S. 87A, equal to the Actual Tax Payable or Rs. 2,500 (reduced from Rs. 5,000 applicable for AY 2017-18) whichever is less.

Senior Citizen Meaning

5. Senior Citizen here means an individual who is resident in India and is of the age of sixty years or more at any time during the relevant previous year.

Very Senior Citizen/ Super Senior Citizen Meaning

6. Very Senior Citizen here means an individual who is resident in India and is of the age of eighty years or more at any time during the relevant previous year.

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