Latest Income Tax Slab Rates for FY 2017-18 (AY 2018-19)

There are three categories of individuals based on the age of tax payer.
  1. Individuals whose age below 60 years.
  2. Senior Citizens whose age is 60 years and above but less than 80 years.
  3. Super Senior Citizens whose age is 80 years and above.
Hence, based on these three categories of individuals I have separated them and Latest Income Tax Slab Rates for FY 2017-18 (AY 2018-19) are as below.

Along with the applicable taxes, you have to additional surcharges at below rates.
  • Surcharge:
    • 10% surcharge on income tax if the total income exceeds Rs.50 Lakhs but below Rs.1 Cr.
    • 15% surcharge on income tax if the total income exceeds Rs.1 Cr.
  • Education Cess: 2% cess on income tax including surcharge.
  • Secondary and Higher Education Cess: 1% cess on income tax including surcharge

If you are under 30% Tax Slab and below 60 years of age

Let us say your next taxable income (after all deductions like Sec.80C and all) Rs.15,00,000.
Up to Rs.2,50,000-NIL
Rs.2,50,001 to Rs.5,00,000-Rs.12,500  @5% (Earlier it used to be Rs.25,000). Now you are saving due to Budget 2017 is Rs.12,500.
Rs.5,00,001 to Rs.10,00,000-Rs.1,00,000 @20%
Rs.10,00,001 and above (in this case Rs.15,00,000)=Rs.1,50,000 @30%.
So total tax will be Rs.12,500+Rs.1,00,000+Rs.1,50,000=Rs.2,62,500.
Your saving from Budget 2017 is Rs.12,500.

# If you are under 20% Tax Slab and below 60 years of age

Let us say your next taxable income (after all deductions like Sec.80C and all) Rs.7,00,000.
Up to Rs.2,50,000-NIL
Rs.2,50,001 to Rs.5,00,000-Rs.12,500 @5% (Earlier it used to be Rs.25,000). Now you are saving due to Budget 2017 is Rs.12,500.
Rs.5,00,001 to Rs.7,00,000=Rs.40,000 @20%
Therefore, the total tax will be Rs.12,500+Rs.40,000=Rs.52,500.
Your saving from Budget 2017 is Rs.12,500.

# If you are under 10% Tax Slab and below 60 years of age

a) Let us say your income is Rs.4,00,000
Up to Rs.2,50,000-NIL
Rs.2,50,001 to Rs.4,00,000-Rs.7,500 @5% (Earlier it used to be Rs.15,000). Now you are saving due to Budget 2017 is Rs.7,500.
Your saving from Budget 2017 is Rs.7,500.
b) Let us say your income is Rs.3,00,000
Up to Rs.2,50,000-NIL
Rs.2,50,001 to Rs.3,00,000=Rs.2,500.
However, using Sec.87A of IT Act, your tax liability will be ZERO.

An individual who is resident Indian and whose total income does not exceed Rs. 3,50,000 is entitled to claim rebate under section 87A.