Income Tax Slabs & Rates as announced in Budget:

FY 2017-18 (AY 2018-19)

General Category
Income Slabs (Non-Senior Citizens)
Income Tax Rates
Up to Rs. 2,50,000/- Nil
Rs. 2,50,001/- to Rs. 5,00,000/-* 5%
Rs. 500,001/- to Rs. 10,00,000/- 20%
Above Rs. 10,00,000/- 30%
* If taxable income does not exceed Rs. 3.50 Lacs, rebate will be 100% of
income tax or Rs. 2,500/- (Whichever is lower).
* 10% Surcharge on income of Rs. 50 Lac -1 Crore.
* 15% Surcharge on income above Rs. 1 Crore (as earlier).
 Income Tax Slabs & Rates as announced in Budget: FY 2017-18
(AY 2018-19)

Senior Citizens (60-80 Very Senior Citizens

Income Slabs Years of age) (above 80 Years of age)
Income Tax Rates
Up to Rs. 3,00,000/- Nil Nil

Rs. 300,001/- to Rs.

5% Nil
5,00,000/-*
Rs. 500,001/- to Rs.
20% 20%
10,00,000/-

Above Rs. 10,00,000/- 30% 30%

* If taxable income does not exceed Rs. 3.50 Lacs, rebate will be 100% of income
tax or Rs. 2,500/- (Whichever is lower).
* 10% Surcharge on income of Rs. 50 Lac -1 Crore.
* 15% Surcharge on income above Rs. 1 Crore (as earlier).
 Personal Income Tax impact as per Budget on General Category
2016-17 2017-18
Annual Income Benefit/Loss
Earlier Tax New Tax
Rs. Figures In Rs.
2.5 Lacs - - -
3 Lacs - - -
3.5 Lacs 5,150 2,575 2,575
5 Lacs 20,600 12,875 7,725
7.5 Lacs 77,250 64,375 12,875
10 Lacs 128,750 115,875 12,875
25 Lacs 592,250 579,375 12,875
50 Lacs 1,364,750 1,351,875 12,875
60 Lacs 1,673,750 1,826,963 - 1,53,213
75 Lacs 2,137,250 2,336,813 - 1,99,563
100 Lacs 2,909,750 3,186,563 - 2,76,813
125 Lacs 4,234,588 4,219,781 14,807
200 Lacs 6,899,713 6,884,906 14,807
 Key highlights of Budget 2017-18
TDS @ 5% to be deducted by an individual or HUF, while making payment of
rent of an amount exceeding Rs. 50,000/- per month.
Such tax shall be deducted and deposited only once in a financial year
No TAN is required and no TDS return to be filed.
Employees submitting their HRA rent declarations need to comply this.

A simplified one page tax return form for individuals with taxable income
(other than business income) of up to INR 5 Lacs.

Interest deduction in respect of let out property (whether first or second) is

restricted upto Rs. 2 Lac.

The time limit to file revised returns is reduced to one year from the end of
financial year.

Penalty for delay in filing tax return : Rs. 5,000/- till December 31, 2018 and
Rs. 10,000/- thereafter. Such penalty is Rs. 1,000/- for small tax payers with
income up to Rs. 5 Lac.
 Receipt of INR 3 Lac or more in a day in cash has been prohibited. Recipient of
money is liable to penalty equivalent to the amount received in cash.
-- Employees to keep this limit in mind while buying or selling
land/flat/jewellery etc.

Business expenditure in cash above Rs.10,000 (as against existing Rs.20,000) will
be disallowed
-- Employees to keep this limit in mind while incurring any expense on
behalf of company

Cash donation to charitable trusts reduced to Rs.2,000 (as against existing

Rs.10,000)

Political party cannot accept donation above Rs.2,000 in cash (as against existing
Rs.20,000/-).

The rate of taxable income reduced to 6% with respect to turnover received

digitally (as against 8%) for small enterprises under presumptive taxation regime.

Withdrawal of Service charge on tickets booked online through IRCTC.

 Partial Withdrawal from NPS (National Pension scheme) by any employee
will be exempt up to 25% of the contribution payable that was fully taxable
earlier.

Deduction to self employed individuals on contribution to NPS doubled

from 10% to 20% subject to a limit of Rs. 1.5 Lac.

Base for computing indexation benefit for long term capital gains shifted
from April 1, 1981 to April 1,2001.

Holding period for computing long term capital gains on land and building
reduced from 3 years to 2 years.