Income Tax Slabs provide you the first hand information about how much tax you are liable to pay at the end of the financial year. Having knowledge of the income tax slabs puts you at an advantageous position as you can do tax planning and tax saving beforehand. In India, every year during the Annual Budget session of the Indian Parliament, income tax slabs are announced. During the Budget 2017, the income tax slabs for the Financial Year 2017-18 (Also known as Assessment Year 2018-19) were announced. There have been some minor changes in the tax slabs compared to the previous financial year 2016-17. You may check our post on the income tax slabs for AY 2017-18 for more details on the income tax slab related to FY 2016-17.
The following are the income tax slabs for the Assessment Year 2018-19 / Financial Year 2017-18 for individuals:
| Individuals & HUF (Both Men & Women) – Age < 60 years | |||
|---|---|---|---|
| Income up to | Tax Rate | Cess | Surcharge |
| ₹2,50,000/- | Nil | Nil | Nil |
| ₹2,50,000 – ₹5,00,000/- | 5% | 3% | Nil |
| ₹5,00,000 – ₹10,00,000/- | 20% | 3% | Nil |
| ₹10,00,000 – ₹50,00,000/- | 30% | 3% | 10%* |
| > ₹1,00,00,000/- | 30% | 3% | 15%* |
| Cess is calculated on income tax + Surcharge; *Surcharge applies only if you have income more than ₹50 Lakh and calculated as percentage of Income Tax only. | |||
| Individuals Both Men & Women – Age: 60 years – 80 Years (Senior Citizens) | |||
|---|---|---|---|
| Income up to | Tax Rate | Cess | Surcharge |
| ₹3,00,000/- | Nil | Nil | Nil |
| ₹3,00,000/- – ₹5,00,000/- | 5% | 3% | Nil |
| ₹5,00,000/- – ₹ 10,00,000/- | 20% | 3% | Nil |
| ₹ 10,00,000/- – ₹50,00,000/- | 30% | 3% | 10%* |
| > ₹1,00,00,000/- | 30% | 3% | 15%* |
| Cess is calculated on income tax + Surcharge; *Surcharge applies only if you have income more than ₹50 Lakh and calculated as percentage of Income Tax only. | |||
| Individuals Both Men & Women – Age: > 80 Years (Very Senior Citizens) | |||
|---|---|---|---|
| Income up to | Tax Rate | Cess | Surcharge |
| ₹5,00,000/- | Nil | Nil | Nil |
| ₹5,00,000/- – ₹ 10,00,000/- | 20% | 3% | Nil |
| ₹10,00,000/- - ₹1,00,00,000/- | 30% | 3% | Nil |
| > ₹1,00,00,000/- | 30% | 3% | 15%* |
| Cess is calculated on income tax + Surcharge; *Surcharge applies only if you have income more than ₹1 Crore and calculated as percentage of Income Tax only. | |||
Find out which income tax slab you will fall into as per income in the financial year 2017-18 (Assessment Year – AY 2018-19) and accordingly estimate/calculate your income tax liability. For FY 2017-18, the tax rebate under section 87 of the Income Tax Act was limited to Rs. 2500 for taxable income up to Rs.3,50,000. Do take this into account while calculating your tax liability. This might be useful in calculating your advance tax liability, or even while computing your tax liability at the time of filing of your income tax returns.
Also make sure to read our post on Advance Tax – who needs to pay it, when and how to pay it etc.
Should you have any queries on your tax liability or has difficulty in understanding the income tax slabs, do leave a comment here, we will make sure your query is answered.