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Hope for a Big Tax Relief in Income Tax Slab for AY 2018–19 | Exemption Limit May Hike

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Income Tax Slab for AY 2018–19

Hope for a Big Tax Relief in Income Tax Slab for AY 2018: Middle class citizens can now hope for big relief in the income tax slab for the AY 2018-19 and this is the last regular budget as given by the NDA government.

The finance ministry is contemplating as the exemption limit of the personal tax may hike. The ministry of finance got the proposal to hike the tax exemption limit from the existing Rs. 2.5 lakh per annum to at least Rs. 3 lakh if not 5 lakh.

Income Tax Slab for AY 2018–19

The ministry of Finance also considered to give relief to the middle-income group while tinkering the of tax slabs. They considered giving relief especially to the salaried class which can help them tide over the impact of retail inflation which has started to gown up.

Big Tax Relief in Income Tax:

According to the last declared budget, the Finance Minister of India did not make any change in the tax slabs and gave a relief to small taxpayers by reducing the rate from 10% to 5%. And this is for the persons having annual income between Rs 2,50,000– Rs 5,00,000.

The next budget was announced in February 2017, the government lowered the taxes by 10% for those having annual Rs. 5 lakh and Rs. 10 lakh, levy a 20 per cent rate for those with income between Rs. 10 lakh and Rs. 20 lakh and 30 per cent for income beyond Rs. 20 lakh.


Is there any relief for others?
  •  Presently there is no tax slab for those citizens who have their annual income between Rs. 10 lakh and Rs. 20 lakh. The industrialist chambers wanted that the government should also reduce the peak tax slab to 25 per cent.
  • There was no possibility that the ministry will agree to this condition due to the pressure on Fiscal deficit. From the 1st of last year, the subdued indirect tax collection following the rollout of Goods and Services has put pressure on the fiscal deficit.
  • This was pegged at the rate of 3.2% of the Gross Domestic product for the financial year 2017-2018. To meet the shortfall, the government has the target of borrowing by additional Rs. 50,000 crore for the current fiscal year.
Know Here:
Income Tax slabs For Domestic Companies For FY 2017-18 (AY 2018-19)

Companies whose annual turnover is up to Rs 50 crore, their tax rate has been brought down to 25% from 30%. Apart from this, all the other rates are same as they were earlier in the previous year.

Income Tax Slab for Individual Tax Payers & HUF (Less Than 60 Years Old) (Both Men & Women) for 2018–19
Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income from Rs 2,50,000 – Rs 5,00,000
5%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)


PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men & Women)
Income Slab
Tax Rate
Income up to Rs 3,00,000*
No tax
Income from Rs 3,00,000 – Rs 5,00,000
5%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh upto Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-1 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)


PART III: Income Tax Slab for Senior Citizens(80 Years Old Or More) (Both Men & Women)

Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income up to Rs 5,00,000*
No tax
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

महत्वपूर्ण प्रश्नों का दे सही जवाब: 9 ऐसे जवाब जो करेंगे आपकी नौकरी पक्की

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