sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
General »
 RBI-Special Deposit Scheme (SDS)-1975 Payment of interest for calendar year 2018
 How senior citizens can avail tax break on interest income under Sec 80TTB a
 Listed companies paid a little less than a third of corporate tax in FY18
 Gifts received from relatives are not taxable
 Income tax return benefits: National Pension System (NPS) also offers this 'hidden' tax relief
 Big 4 audit companies may suffer revenue hit due to conflict of interest norms
 How much tax do you pay on your bond investments?
 Companies rush to reconcile financial results with state wise audit, seek extension of deadline
 Interim budget may include income tax announcements, says report
 All you need to know about tax benefits for senior, super senior citizens
 Where to invest money for the short term

Will govt bring change in income tax slab? here's the present structure
January, 04th 2018

Now that the Union Budget 2018 is just around the corner, let's have a look at the current income tax slabs, wherein, individual incomes are categorised to pay tax to the government.
Income tax is a percentage that individuals or corporates pay to the government from their income. This income is categorized in different groups on the basis of the amount of income. Each group is known as tax slab.
Usually every year, the income tax slab rates are revised during the budget. Various deductions are allowed to a taxpayer under Section 80C and Section 80D.
Finance Minister Arun Jaitley announced changes in the I-T slab in the budget 2017, here's what they say.
Income tax for men and women below age 60 years
If a person has annual income up to Rs 2,50,000, they are not liable to pay any sort of tax.
In case, the annual income is between Rs 2,50,000 – Rs 5,00,000, then a person will have to pay 5% tax along with 2% education cess and 1% secondary & higher education cess.


If they earn between Rs 5,00,001 – Rs 10,00,000, they will have to pay 20% tax along with 2% education cess and 1% secondary & higher education cess.
A  person having an annual income above Rs 10,00,000 has to 30% tax with 2% education cess and 1% secondary & higher education cess.
If the annual income exceeds Rs 50 lakh up to Rs 1 crore, you are liable to pay 10%. And a person having an income above Rs 1 crore, has to pay 15% tax along with additional 3% service charge.

Income tax for men and women above 60 years but less than 80 years age
After reaching 60 years of age, a person is exempted from tax on earnings up to Rs 3,00,000.
However, they have to pay 5% tax on earnings from Rs 3,00,000 to Rs 5,00,000, and between Rs 5,00,001 and Rs 10,00,000 the tax rate of 20% is levied and those who earn above Rs 10,00,000 have to pay 30% tax.

Apart from this, they also have to pay 2% income tax on education cess and 1% tax on secondary and higher education cess.
Similar is the case for taxpayers who earn between Rs 50 lakh and Rs 1 crore, and above, if they attain 60 years of age.
Income Tax for senior citizens (80 years or more)
Senior citizens are tax exempted on annual earnings up to Rs 5,00,000.

If they earn between Rs 5,00,001 and Rs 10,00,000, they are liable to pay 20% tax. While on earnings above Rs 10,00,000, a tax of 30% is charged. Tax rate on other cess is similar like above.
Income Tax for Hindu Undivided Families (HUF)
HUF is a separate entity for the purpose of assessment under the I-T Act. Under Hindu Law, an HUF consists of all persons lineally descended from a common ancestor and it includes wives and unmarried daughters.

An HUF is tax exempted on earnings up to Rs 2,50,000. 10% tax is charged on earnings between Rs 2,50,000 and Rs 5,00,000, while 20% on earnings between Rs 5,00,001 and Rs 10,00,000 and it increases to 30% over Rs 10,00,000 income.
Income Tax for legal entities registered as associations of persons
Association of Person is defined as a person under Section 2(31)(v ) of the Income Tax Act.

These entities are charged with 10% income tax on earnings between Rs 2,50,000 and Rs 5,00,000. While earnings group between Rs 5,00,001 and Rs 10,00,000 and above Rs 10,00,000, has to pay income tax of 20% and 30% respectively.
Earnings till Rs 2,50,000 is tax exempted. Similar tax rates are levied on legal entities registered as bodies of individuals.

It may be noted that Partnership Firms and LLPs (Limited Liability Partnerships) are taxed at the rate of 30%.
30% tax rate is also levied on entities acting as local authorities and domestic companies.

Income Tax for co-operative societies
10% of income tax is levied on co-operative societies for their income up to Rs 10,000. While 20% on the income between Rs 10,000 and Rs 20,000. If co-operative societies have income above Rs 20,000, they will pay 30% tax.

Interestingly, only 2% income tax is levied on their earnings over Rs 1 crore, and 5% on earnings above Rs 10 crore.
Furthermore, they also need to pay 2% education cess and 1% secondary & higher education cess.
Remember that education and secondary & higher education cess is also levied on the income tax along with surcharge.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions