Latest Income Tax Slabs and Rates for FY 2016 – 2018 and AY 2018 – 2018 News Update Date 19 May 2018: The Budget FY 2018-18 has many provisions and reserves. This tax content is going to update for Latest Income Tax Slabs and Rates FY 2016 – 2018 and 2018 – 2018 financial year. All tax payers and non tax payers should read this full article which is related to Tax provisions of this budget. Many new tax payers slabs and rates are updated this year.
Latest Income Tax Slabs and Rates for Financial Year ending Financial Year 2016-17 and Advance Assessment Year 2018-18.
Government chances income tax rates and slabs every year. Here you read below the Income Tax Rates and Slabs applicable for the FY 2016-17 or AY 2018-18.
Income Tax Rates and Slabs
GST 4 Slabs:
- 5 Percent Tax
- 12 Percent Tax
- 18 Percent Tax
- 28 Percent Tax
|Income Range||General (non-senior citizens) Category|| Women (Below 60 years of age)
(This category is abolished from this year and is thus is same as that of General Category
|Senior Citizens (Men and Women above 60 years of age), but below 80 years||Very Senior Citizens (Men and Women above 80 years of age)|
|Upto Rs. 2,50,000||Nil||Nil||Nil||Nil|
|Rs. 2,50,001 to Rs. 3,00,000||10% *||10% *||Nil||Nil|
|Rs. 3,00,001 to Rs. 5,00,000||10% *||10% *||10% *||Nil|
|Rs. 5,00,001 to Rs. 10,00,000||20%||20%||20%||20%|
|Above Rs. 10,00,000||30% **||30% **||30% **||30%**|
Therefore, we can say:
- The basic exemption limit for people (ie below 60 years) is Rs 2.50 Lakhs
- The basic exemption limit for the elderly (60 years below 80 years) is Rs 3.00 Lakhs
- The basic exemption limit for the elderly elderly (80 years and over) is Lakhs Rs3.50
However, some tax cuts were granted during the year 2016-17 through the following discounts:
As mentioned above, the income tax refund amounts to Rs 5000 for taxable income less than Rs. 5 thousand rupees.
The tax deduction for the payment of rent (Section 80GG) is increased from Rs. 24,000 to Rs. 60000. This deduction is available to those who live in a rented home, and do not receive the rent subsidy from their home employer.
First home buyers may request an additional tax deduction of up to Rs. 50,000 in interest payments on a housing loan under Section 80EE. This additional deduction of Rs. 50,000 would be available beyond the 80C limit of Rs. 1,500 rupees. This means that the total under section 80C tax deduction up to Rs. 2 thousand rupees provided for at least Rs 50,000 are paid as interest on residential loans during the fiscal year. This additional tax deduction is available only to buyers who meet all of the following criteria:
- They received a home loan approved in 2016-17.
- The loan amount is less than 35,000 rupees
- Rs. 50 Lakhs
There would be no capital gains tax on the redemption of Sovereign Gold Bond. Long-term capital gains resulting from the Gold Bond transfer would be eligible for the indexation grant. Sovereign Gold Bond scheme was launched to discourage the purchase of physical gold for investment purposes.
The government would charge no capital gains tax on the interest income of the gold monetization system. The gold monetization scheme was launched to channel gold without domestic use.
The withdrawal of 40% of the NPS (National Pension System) would be exempt from tax. With this NPS, the wealth given to the candidate after the death of the underwriter would be 100% tax free.
If an employer invests in an employee’s pension fund, the amount invested is exempt from taxes. The budget for this year (2016) increased the exemption limit of Rs. 1 to Rs. 1.5 Lakh.