Income tax slab changes 2017-18 for Male Female Senior Citizen
After the Union Budget for Financial Year 2017-18 was out, common people are seemed to be happier than anyone else. With the 50% income tax reduction for the lower income group the ordinary people are cheering for the Achche Din (good Days). On the other senior citizens also get reduction in tax rates. This has also made them smile. It seems that the Union Budget this year was dedicated to the weaker group of the economy.
New Income Tax Structure
- According to new tax structure those who are earning up to Rs. 2, 50, 000/- per year will not be fallen under any income tax slab. Their income will be tax-free.
- The first slab of Income tax is between income of Rs. 2.5 Lac and Rs. 5 Lac per annum. People who fall within this slab will need to pay tax at the rate of 5% of total gross annual income.
- People who earn more than Rs 5,00,000/- per year but less than Rs 10,00,000/- annually, will have to bear the tax rate of 20% which is same as the previous year. There is no change in this slab.
- People who earn more than Rs. 10,00,000/- per annum will have to bear tax rate of 30% of their total gross income. This rate also remains same as the previous budget. Only the lower slab rate has reduced.
- As a whole by calculation we can say that total of Rs. 12, 500/- will be saved per year for a person. On the other according to Section 87A people who fall under the income slab Rs. 2.5 Lakh to Rs. 3.5 Lakh per annum, there will be rebate of Rs. 2500/- that is up to Rs. 3, 00,000/- there will be no tax for the people.
New Income Tax Structure for the Senior Citizens
People who are aged between 60 years and 80 years are considered to be the senior citizen in India. Unlike previous year the tax rates are revised for the senior citizens as well. According to the Union Budget 2017-18 the rates are as follows:
- Tax Rate to be paid up to Rs. 3 Lac per annum for the senior citizen is nil. People will not be required to pay up to this income as tax. This provision is same as before.
- Senior citizens who earn more than Rs. 3 Lac and less than Rs. 5 Lac per annum will be liable to pay tax rate at 5% of total gross income in a year. The rate was 10% in the previous budget.
- Senior citizens who earn more than Rs. 5 Lac but less than Rs. 10 Lac annually will have to pay 20% of their total income per year. This tax slab remains the same as before.
- People earning more than Rs. 10 Lac in a year will have to pay 30% of the total gross income in a year as their income tax. This rate is also same as previous union budget structure.
New Income Tax Structure for the Super Senior Citizens
People who are aged above 80 years are considered as Super Senior Citizen in India. The tax slab for the Super Senior Citizen is as follows:
- Income up to Rs. 5 Lac will be fallen under no tax. Up to this amount people will not be required to pay any income tax annually. If the income falls between 5 Lac to 6 Lac then the person needs to pay income tax.
- The second slab is considered from Rs. 6 Lac to Rs. 10 Lac per annum. But the 20% tax rate is levied above Rs. 5 Lac per annum. This tax rate has not changed this year.
- The last slab is annual income above Rs. 10 Lac. People with such income will have to bear tax rate of 30% of the total gross annual income.