Get News Alerts from Taxmann.com on your desktop.
No Thanks Allow
You have blocked the notification on recent updates. Click below to re-subscribe.
No Thanks
You have already subscribed to Taxmann’s notification.
No Thanks UnSubscribe
Your Session Will Expire in   seconds.
If you do not wish to log-out, choose 'Let me continue'
Reset Session Cancel Session
 
Skip Navigation Links

What is Income Tax, Income Tax Slab For FY 2017-18, e-Filing Process


As we work to earn our living to fulfill our needs and desires, the Government has its own ways of earning money which is, in turn, utilized for creation or betterment of infrastructures for us to avail. Levying taxes is one of them, which can be further bifurcated into the levy of Direct Taxes and Indirect Taxes. Today we are going to read about Direct Taxes, in particular, what is Income Tax?

If we go by the exact definition, Direct Tax means a kind of tax levied where the incidence and impact of taxation occurs on the same entity or taxable person. 

In simpler words, the taxable person is himself liable to pay the taxes as imposed under Income Tax, Wealth Tax, Corporation tax, Property Tax, etc. Various rules and regulations in this regard are being issued by the Central Board of Direct Taxes in India or CBDT, often regarded as Department. They oversee the roll-out of latest policies and take care of its enforcement. 

Income Tax Basics : What is Income Tax in India

Proceeding with the Indian Income Tax, under this tax rule every earned, as well as, unearned income is subject to a levy of an annual tax under the rule of Income Tax. Here, earned income includes salary, wage or commission earned. Unearned income would mean interests earned on investments or dividends received.    

Tax levied as per pre-decided percentage on the net taxable income which needs to be deposited at the end of Department. In India, to keep parity between the income by different class of people and tax paid, an Income Tax slab is issued with different rates of taxation for different income group. It begins with 0% or NIL taxation and eventually leads up to 30% of tax levied on net taxable income. 
For the calculation of taxable income, tax practitioners consult the provisions of Income Tax 1961, which clearly mentions the do’s & don’ts. Each year, after Budget is being discussed by the Houses of Government, where it presents with the tentative changes or updation of tax provisions, notifications and circulars are issued to the general public for calculation of taxes for that Financial Year. 

Income tax slabs in India for Latest Tax Rates

In India, tax is levied as per the slab system where a gradually increase in tax rate is levied upon different range of taxable income. These slabs go through changes every year at the Budgetary discussion. 

Income Tax Slab Rates for FY 2017-18(AY 2018-19

Individual Tax Payers & HUF (Less Than 60 Years Old) (Both Men & Women)

Income Slab

Tax Rate

Income up to ₹ 2,50,000

No tax

Income from ₹ 2,50,000 – ₹ 5,00,000

5%

Income from ₹ 5,00,000 – ₹ 10,00,000

20%

Income more than ₹ 10,00,000

30%

Surcharge: 10% of income tax, where total income exceeds ₹ 50 lakh up to ₹1 crore and 15% of income tax, where the total income exceeds ₹1 crore.

Cess: 3% on total of income tax + surcharge.


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 ₹ 3,00,000

No tax

Income from ₹ 3,00,000 – ₹ 5,00,000

5%

Income from ₹ 5,00,000 – ₹ 10,00,000

20%

Income more than ₹ 10,00,000

30%

Surcharge: 10% of income tax, where total income exceeds ₹ 50 lakh upto ₹ 1 crore and 15% of income tax, where the total income exceeds ₹ 1 crore.

Cess: 3% on total of income tax + surcharge.


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

Income Slab

Tax Rate

Income up to ₹ 2,50,000

No tax

Income up to ₹ 5,00,000

No tax

Income from ₹ 5,00,000 – ₹ 10,00,000

20%

Income more than ₹ 10,00,000

30%

Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.


How to Compute Income Tax:

Computation of income tax or, any other Direct Tax requires detailed knowledge of the provisions of the tax laws as outlines by the CBDT. There are several tax modules which need careful studying before you can take up the job of calculation of taxes. At Taxmann, we offer the largest online legal database of taxation and corporate laws. Upon subscription, you are able to access the largest repository of legal data comprising Acts, Commentaries, Notifications, and Case Laws pertaining to Income Tax, Company Law, Indirect Taxes, Accounts & Audits, and International Taxation


Calculate your Income Tax with Taxmann Income Tax Calculator

                                Income Tax Calculator FY 2019-20

For salaried individuals there is a provision of determining Income Tax online through Tax Calculator Tools available on Taxmann.com. All you need is to fill in the details as mentioned in your income receipts or salary slips issued by your employer.  

Filing your Income Tax Return

Every year, after one has paid its taxes there has to be a return filed with the Department where it has to be declared that as per the taxable income of the year, proper care has been given to pay the accurate amount of tax calculated for that. So, if your income is over ₹2.5 lacs per annum, then you have to file a return either electronically or otherwise, to prove that you have earned throughout the past year and have accrued a rate of tax, however if it is NIL or 0%. If you have paid any extra amount of tax, then that gets refunded back to the taxpayer’s account from the Department’s end.

For a complete Income Tax guide, visit our bookstore and check out Taxmann’s Online Module which comprises an all-inclusive database.


Also Read: 



Disclaimer: This information is updated till 27 September 2017.

Related Stories

Budget 2019 - New deduction u/s 80EEA proposed to claim deduction of interest paid on housing loan

Deduction under section 80EEA has been proposed by the Finance (No. 2) Bill, 2019 to provide for deduction with respect to interest on housing loan acquired on or after April 1, 2019.

Planning to buy electric car? Union Budget 2019 has something for you!

The Finance (No. 2) Act, 2019 has proposed to introduce section 80EEB in the Income-tax Act, 1961 to provide deduction with respect to interest paid on loan taken for purchase of an electric vehicles

Budget 2019: Highlights of Proposals made in Income Tax

Budget 2019 Highlights: Here are the highlights of proposals made in Income tax.







taxmann.com
Payment
Best view in 1140 x 768