Income Tax Slab 2018-19: Personal Tax Slabs, Rates Remain Unchanged, Standard Reduction Raised to Rs 40,000

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Income Tax Slab 2018-19: Personal Tax Slabs, Rates Remain Unchanged, Standard Reduction Raised to Rs 40,000
By India.com News Desk | Updated:Thu, February 01, 2018 3:15pm

Catch live updates on new income tax slab, tax rates and exemption limits announced in the Union Budget 2018-19.

01 Feb, 03:15 pm
In the Union Budget 2018, Finance Minister Arun Jaitley kept the income tax rates and slabs unchanged and introduced a Rs 40,000 Standard Deduction for salaried employees and pensioners in lieu of transport and medical expenses. For senior citizens, exemption of interest income on bank deposits was raised to Rs 50,000 from the current Rs 10,000.
Also, exemption on medical expenses on critical illness has been raised to Rs 1 lakh, he said in his 110 minute speech. Jaitley said a 10 per cent tax long on capital gains exceeding Rs 1 lakh made from the sale of shares has been introduced but those made till January 31 would be grandfathered. A 10 per cent tax on distributed income by equity-oriented mutual funds has also been proposed in the budget.
01 Feb, 01:03 pm
Income

Income Tax rate for 2017-18

Income Tax rate for 2018-19

Individual tax payers

Up to Rs 2,50,000

No tax

No tax

Rs 2,50,001 to Rs 5,00,000

5%

5%

Rs 5,00,001 – 10,00,000

20%

20%

More than Rs 10,00,000

30%

30%

Senior citizens who are 60 years old and above but less than 80 years

Up to Rs 3,00,000

No tax

No tax

Rs 3,00,001 to Rs 5,00,000

10%

10%

Rs 5,00,001 to Rs 10,00,000

20%

20%

More than Rs 10,00,000

30%

30%

Senior Citizens who are 80 years old and above

Up to Rs 5,00,000

No tax

No tax

Rs 5,00,001 to Rs 10,00,000

20%

20%

More than Rs 10,00,000

30%

30%

01 Feb, 12:57 pm
Budget 2018 Highlights: Key Points in FM Arun Jaitley's Finance Bill
01 Feb, 12:57 pm
Budget 2018: Mobile Phones Get Costlier, Custom Duty Increased to 20 Per Cent From 15
01 Feb, 12:56 pm
New Income Tax Slab 2018-19 LIVE News Updates: Arun Jaitley proposed to increase education cess to 4 per cent from 3 per cent to collect additional Rs 11,000 crore.
01 Feb, 12:49 pm
New Income Tax Slab 2018-19 LIVE News Updates: Rs 1,00,000 medical allowance from income tax for senior citizens.
01 Feb, 12:41 pm
New Income Tax Slab 2018-19 LIVE News Updates: Jaitley proposed to raise exemption of interest income on bank deposits to Rs 50,000 for senior citizens.
01 Feb, 12:39 pm
New Income Tax Slab 2018-19 LIVE News Updates: Arun Jaitley also proposed to cut corporate tax to 25 per cent for firms upto Rs 250 crore annual turnover.

01 Feb, 12:38 pm
New Income Tax Slab 2018-19 LIVE News Updates: In a relief for salaried taxpayers. Arun Jaitley proposed Standard Deduction of Rs 40000 under transport, medical reimbursement. The facility is extended to pensioners.
01 Feb, 12:35 pm
New Income Tax Slab 2018-19 LIVE News Updates: No changes in income tax slabs, says Arun Jaitley.
01 Feb, 01:52 pm
Budget 2018: Good News For Women Employees; EPF Deduction to be Reduced to 8 Percent
01 Feb, 12:32 pm
New Income Tax Slab 2018-19 LIVE News Updates: Arun Jaitley proposes 100 per cent income tax deduction for farmer produce companies with a turn over of Rs 100 crores per annum.

01 Feb, 12:31 pm
New Income Tax Slab 2018-19 LIVE News Updates: Demonetisation was received by honest taxpayers as 'Imaandari ka Utsav', says Arun Jaitley.
01 Feb, 12:30 pm
New Income Tax Slab 2018-19 LIVE News Updates: 85.51 lakhs new taxpayers filed IT returns in last one year.
01 Feb, 12:29 pm
New Income Tax Slab 2018-19 LIVE News Updates: Excess revenue collected from personal Income Tax amounts to Rs 90,000 crore attributed to anti-evasion measures taken by the government, says Arun Jaitley.
01 Feb, 12:28 pm
New Income Tax Slab 2018-19 LIVE News Updates: There has been a huge increase in the number of returns filed by income taxpayers, says Arun Jaitley.

01 Feb, 12:27 pm
New Income Tax Slab 2018-19 LIVE News Updates: Excess revenue collected by Income Tax is 90000 crores, says Arun Jaitley.
01 Feb, 12:26 pm
New Income Tax Slab 2018-19 LIVE News Updates: Direct taxes grew at 12.6 per cent (2016-17), and is 18.7 per cent as of January 2018.
01 Feb, 12:24 pm
New Income Tax Slab 2018-19 LIVE News Updates: Arun Jaitley is now speaking on taxes.
01 Feb, 11:58 am
New Income Tax Slab 2018-19 LIVE News Updates: In 2014, Arun Jaitley had demanded that the Income Tax ceiling be raised from Rs. 2 lakh to Rs 5 lakh. Will he raise the exemption limit?

01 Feb, 11:43 am
New Income Tax Slab 2018-19 LIVE News Updates: The government may raise the exemption limit on medical expenses to Rs 50,000 per annum from the existing Rs 15,000.
01 Feb, 11:39 am
New Income Tax Slab 2018-19 LIVE News Updates: In order to give more purchasing power in the hands of common people, the minimum exemption limit may be increased from the current level of Rs. 2.5 lakh to Rs. 3 lakh per annum.
01 Feb, 11:28 am
New Income Tax Slab 2018-19 LIVE News Updates: "Our emphasis is on generating higher income for farmers. We want to help farmers produce more and realise higher prices," said Arun Jaitley in his budget speech.
01 Feb, 11:22 am
New Income Tax Slab 2018-19 LIVE News Updates: From the ease of doing business, our government has moved to ease of living for the poor and middle class, says Arun Jaitley.

01 Feb, 11:12 am
New Income Tax Slab 2018-19 LIVE News Updates: Arun Jaitley is now speaking on agriculture.
01 Feb, 11:11 am
New Income Tax Slab 2018-19 LIVE News Updates: With demonetisation, the quantum of cash currency in circulation and increased tax base and has also helped improve the digitalization of our country, says Arun Jaitley.
01 Feb, 11:08 am
New Income Tax Slab 2018-19 LIVE News Updates: "Indian economy has performed very well since our government took over in May 2014. It is now the seventh largest in the world," said Arun Jaitley.
New Delhi, Feb 1: Finance Minister Arun Jaitley will present the Union Budget 2018-19 in Lok Sabha today. Speculations are rife that the government may increase the income tax slabs from a minimum of Rs 2.5 lakh per annum to Rs 3 lakh or reduce the tax rate for individuals with annual income between Rs 2.5 lakh and Rs 5 lakh. We will be giving live updates on Arun Jaitley's announcement on new income tax slab for the financial year 2018-19 in the Union Budget. Catch live updates on new income tax slab, tax rates and exemption limits announced in the Union Budget 2018-19. (Watch: Live Streaming of Union Budget 2018)

At present, there are three slabs for income tax 5 per cent income tax for individuals with annual income between Rs 2.5 lakh and Rs 5 lakh, 20 per cent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 per cent on income above Rs 10 lakh. It is expected that the common man may get more tax reliefs in the upcoming budget. Ahead of the Budget 2018, several commentators advocated the abolition of income tax, arguing that this would eradicate both tax evasion and black money at one stroke. Catch live updates on Union Budget 2018 here.

The State Bank of India recently said in a report that the government must increase the income tax exemption limit from Rs 2.5 lakh to Rs 3 lakh. This will benefit 75 lakh taxpayers. It is also reported that the government may increase the limit of tax exemption from Rs 1.5 lakh to Rs 2 lakh under Section 80 C. There are speculations on whether Arun Jaitley will keep his promise of further reducing the corporate tax rates. Presenting the first full Budget of the present NDA government on February 28, 2015, Jaitley had proposed to reduce the rate of Corporate Tax from 30 per cent to 25 per cent. But it is yet to be done.

Income Tax Slabs For Financial Year 2017-18
Income Income Tax rate for 2016-17 Income Tax rate for 2017-18
Individual tax payers
Up to Rs 2,50,000 No tax No tax
Rs 2,50,001 to Rs 5,00,000 10% 5%
Rs 5,00,001 10,00,000 20% 20%
More than Rs 10,00,000 30% 30%
Senior citizens who are 60 years old and above but less than 80 years
Up to Rs 3,00,000 No tax No tax
Rs 3,00,001 to Rs 5,00,000 10% 10%
Rs 5,00,001 to Rs 10,00,000 20% 20%
More than Rs 10,00,000 30% 30%
Senior Citizens who are 80 years old and above
Up to Rs 5,00,000 No tax No tax
Rs 5,00,001 to Rs 10,00,000 20% 20%
More than Rs 10,00,000 30% 30%
(Surcharge of 10 per cent on income of all individuals above Rs 50 lakh and less than Rs 1 crore and surcharge of 15 per cent on income above Rs 1 crore).
In the Union Budget 2018-19, the government may bring a new tax slab for people with income between Rs 5 and 7.50 lakh annually. In Budget 2017-18, Arun Jaitley had proposed a reduction of 5 per cent in income tax rate for individuals with income ranging between Rs 2.5 lakh to Rs 5 lakh. He had also announced surcharge of 10 per cent for those whose annual income is Rs 50 lakh to Rs 1 crore. Stay connected with us to get instant live updates on new income tax slabs.

Published:Thu, February 01, 2018 10:30am | Updated:Thu, February 01, 2018 3:15pm

Tags
Income TaxArun JaitleyIncome Tax ratesBudget 2018Budget 2018-19Union Budget 2018Income Tax Slabs 2018-19Finance Budget 2018Tax slabs budget 2018Union Budget 2018-19Income Tax Slabs 2018
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