Income Tax Slab Rates for Financial Year (FY) 2017-18 Assessment Year (AY) 2018-19

I hope you know that every year the income tax slab rate is revised in the Financial Budget. In the previous budget (i.e) February 2016, there was no change in the slab rate. So everyone was hoping for a change in the slab rate this year. However, in this budget there was a change in the tax rate instead of the slab rate. The finance minister slashed the tax rate instead of the slab rate. Let's get into the details.

The Income Slab Rate is divided into three categories for Individuals :

1) Residents below 60 years

2) Residents above 60 years but below 80 years (senior citizen )

3) Residents above 80 years (super senior citizen )

In this budget there is a change in the tax rate for the first category. However, there is no change in the tax rate for others and the slab rate remains the same.The existing rebate under Section 87A (currently given to people with income up to Rs 5 lakhs) is proposed to be reduced to Rs 2,500 from the existing Rs 5,000 for individuals earning between Rs 2.5 lakh to Rs 3.5 lakh. Let's see each of them in detail.

The following Slab Rate is applicable for the assessee who is below 60 years of age.

Mr. X has a total Income of Rs. 11,00,000. He is of 50 years of age. Computation of his Tax Liability is as follows:

Mr. X has a total Income of Rs. 3,00,000. He is of 50 years of age. Computation of his Tax Liability is as follows:

As per the changes made in this budget, the tax burden for those with income upto Rs 3 lakh would be zero, after applying the rebate U/s 87A.

There is no change in the slab limit. However tax rate is slashed.

To make it easy to understand, we take the same amount as before, Rs.11,00,000/-. But the assessee is 65 years of age.

In this category there is no change in the slab rate. The slab rate is same as of the previous year. The exemption limit is Rs.5,00,000/-.

Once again we take the same amount as taxable salary for easy understanding.

Let's assume that Mr. Y is of 84 years of age and having Total Income of Rs. 11,00,000/-. Let's check the Tax liability using the slab rate for the Financial Year FY 2017-18

So we have seen the slab rates for all the categories of Individuals. Now we can compare those which gives a clear idea about the slab rates. Taking Rs.11,00,000/- as taxable salary we just compare the tax liability for all the categories.

Hope you enjoyed this article. And also hope that this Budget does not disappoint you as there is a change in the tax rate.

Now it's time for you to take a small quiz. Just give a try and see how you understand the slab rate.

Thanks for reading the article. If you have any queries just drop in the comment section below. Just consider this article for educational purposes.