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Assorted Tax Rate For Civilians According To Their Earnings

ASSORTED TAX RATE FOR CIVILIANS ACCORDING TO THEIR EARNINGS

 MoneyMindz.com India's First Free Online/ on-call Financial Advisory

MoneyMindz.com India’s First Free Online/ on-call Financial Advisory  

Arun Jaitley emboldened the individual tax payers in our country by carving the tax rate to 5% for citizens having taxable income within Rs. 2.5 lakhs to Rs. 5 Lakhs from an earlier scheme of onerous 10%. Concurrently, our Finance minister has inflated the surtax of 10% on the 30% tax amount for denizens having an income between Rs. 50 Lakhs to Rs. 1 Crore which was there before to counterbalance the government income from any loss.The new tax slabs which will be commencing from April, 1 2017 are as follows:

General Category (for person up to 60 years age) :

For General Category – Individuals with an age up to 60 years will taxable if income is more than Rs. 2.5 Lakhs. No tax will be foisted upon people having income in between Rs. 0 – Rs. 2.5 Lakhs. A tax of only 5 per cent will be applicable if income is between Rs. 2.5 – 5 Lakhs. Further, the income tax rebate of up to Rs. 5,000 which was earlier given for taxable income up to Rs. 5 Lakhs, has been reduced to Rs. 2,500 and it will be available for taxable income of up to Rs. 3.5 Lakhs. It means if an individual has a taxable income of Rs. 3 Lakhs, his net tax liability will be zero (tax @5% on Rs. 1 Lakhs is Rs. 2,500 minus rebate of Rs. 2,500).

Income Tax
Up to Rs. 2.5 Lakhs Nil
Rs. 2,50,001-Rs. 5 Lakhs 5%
Rs. 500,001-Rs. 10 Lakhs 20%
Above Rs. 10 Lakhs 30%

For income between Rs. 5-10 Lakhs, a tax of 20 per cent will be applicable and for income above Rs. 10 Lakhs a tax rate of 30 per cent will be applicable. However, people having taxable income of more than Rs. 50 Lakhs but less than Rs. 1 Crore, a new surcharge of 10% will be imposed along with the a tax of 30 per cent. For example, if an individual has a taxable income of Rs. 55 Lakhs, his tax liability will now increase from Rs. 15.19 Lakhs earlier to Rs. 16.57 Lakhs now (income tax of Rs. 14.62 Lakhs plus surcharge of Rs. 1.46 Lakhs and education & higher education cess of Rs. 48,263). If taxable income is more than Rs. 1 Crore, then the surcharge will increase to 15 per cent of tax plus education and higher education cess of 3 per cent. However, on taxable incomes where surcharges are applicable, tax payers get the benefit of marginal relief, if applicable.

Senior citizens (for person between 60-80 years age) :

For senior citizens falling in the tax bracket of Rs. 0 to Rs. 3 Lakhs, no tax will be applicable. For income between Rs. 3-5 Lakhs, a tax rate of 5 per cent will be applicable. The tax rate and surcharge will be same as general category for income between Rs. 5-10 Lakhs and above Rs. 10 Lakhs.

Income Tax
Up to Rs. 3 Lakhs Nil
Rs. 3,00,001-Rs. 5 Lakhs 5%
Rs. 5,00,001-Rs. 10 Lakhs 20%
Above Rs. 10 Lakhs 30%
Super senior citizens (for person above 80 years age):

For people aged above 80 years no tax will be applicable for income up to Rs. 5 Lakhs. A tax rate of 20 per cent and 30 per cent will be applicable for income between Rs. 5 Lakhs and Rs. 10 Lakhs and Rs. 10 Lakhs and above respectively as in case of general category.

Income Tax
Up to Rs. 5 Lakhs Nil
Rs. 5,00,001-Rs. 10 Lakhs 20%
Above Rs. 10 Lakhs 30%

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