Income Tax Slab 2017-18 India Union Budget 2017-2018 Tax Percentage, Surcharge

Union Budget 2017-2018 was announced at Indian Parliament by Finance Minister Arun Jaitley on 1 February 2017. All people of India who were suffering from demonetization impact was looking forward to know what will be new income tax rates in this financial year. Income Tax slab 2017-18 has been announced by Arun Jaitley which will be followed for filing of Income tax returns in India by all tax payers.

Income tax calculator has been released by IT department which helps you in detailed calculation of tax to be paid and deductions along with surcharge. Income Tax Department has also published a detailed report on all suspected PAN numbers which have made deposits exceeding limits during demonetization period. Are you coming under tax paying income limits or not in this financial year 2017-2018 can be known only be referring Income Tax slab 2017-18. New Tax Percentage, surcharge has been released as a chart which will easily help every one to know regarding under which slab they are coming.

Union finance minister Arun Jaitley’s presentation of Union Budget on 1-2-2017 was eagerly awaited by all Indians.There are lot of changes to tax paying income limits in this new budget announced on 1st February. There was demand for a long time to increase limit of taxable income and up to Rs.2,50,000 there will be no tax payable. From 2.5 lakhs to 5 lakhs salary income a 5% tax will be applicable. Is this new Income Tax slab 2017-18 satisfying every tax payer or not is to be evaluated. Public opinion is that present Income Tax Slab 2017-18 is a huge relief to salaried employees in middle class sector who depend mainly on their low salaries. Earlier in 2016-2017 financial year Income tax slab for Rs.2,50,000 to Rs.5,00,000 was 10 percentage which is now reduced to 5 percentage from 1 April 2017 to 31 March 2018.

All tax slabs will be getting a uniform benefit of Rs 12,500 per person which is another great relief. Surcharges of 10 percentage will be levied on income between Rs. 50 Lakhs to Rs. 1 Crore. Surcharge of 15 percentage will be applicable on Income above Rs. One crore.

And to make all low income groups in first slab to pay their taxes correctly, Union Finance Minister Arun Jaitley has said that process of filing of Income tax return is made a simple process.

This slab group will have an easy process by submitting a single page in income tax website IT returns form. This is to ensure that even root level income groups are attracted to pay taxes correctly and make sure that they do not have any difficult procedures to pay off taxes.

Arun Jaitley’s words in Parliament regarding Income Tax Slab 2017-18 was as follows “I, propose to reduce existing rate of taxation for individual assesses between income of Rs 2.5 lakhs – Rs 5 lakhs to 5 percent from the present rate of 10 percent.”

With this major change in Income taxation slab, Arun Jaitley had made tax liability of every one with income below Rs.5,00,000 (5 Lakhs)to zero with rebate or to 50 % of present liability in this income slab.

Income Tax Slab 2017-18 from 1 April 2017 to 31 March 2018

This is Income tax slab is applicable Financial year 2017-2018 with it’s Assessment year as 2018-2019.

  • For Individuals up to 60 years

Up to Rs 2.5 Lakhs – There is No tax or Zero tax
From Rs 2.5 Lakhs to Rs 5 Lakhs 5% Tax
From Rs 5 Lakhs to Rs 10 Lakhs 20% Tax
Above Rs 10 Lakhs 30% Tax

  • For Senior citizens above 60 years to 80 years

Up to Rs 3 Lakhs – There is No tax or Zero tax
From Rs 3 Lakhs to Rs 5 Lakhs 10% Tax
From Rs 5 Lakhs to Rs 10 Lakhs 20% Tax
Above Rs 10 Lakhs 30% Tax

  • For Senior citizens above 80 years

Up to 5 Lakhs – There is No tax or Zero tax
From Rs 5 Lakhs to Rs 10 Lakhs 20% Tax
Above Rs 10 Lakhs 30% Tax

Income Tax Slab 2017-18

Detailed Report on Income Tax Slab 2017-18

How will the new Income tax slabs affect common man and what are opinions regarding it. Detailed discussion of Union Minister Arun Jaitley’s budget speech announcing Income Tax Slab 2017-18 in Parliament.

10 percentage Surcharge on income between Rs 50 lakhs to Rs 1 crore. Surcharge of 15 ercentage on income above Rs 1 crore.

Tax payable is also classified based on age of a person. New tax rates are applicable for all salaried employees who are in age group below 60 years.

For those people who are above 60 years income tax on salary up to Rs.5,00,000 will be same as in previous financial year.

For tax payers above age of 80 years, there will be Zero tax liability on income up to Rs 5 Lakhs.