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Income Tax exemption limit may be raised from 2.5 lakh to 3 lakh by budget 2018

By Paras Mehra

( 3.71K Views) January 11, 2018

Income Tax exemption limit may be increased to Rs.3 Lakh

The government of India may plan a New Year gift for you by raising the free income tax limit from 2.5 lakh to 3 lakh. As per the report, the government is planning to increase the basic exemption limit from 2.5 lakh to 3 lakh to provide additional relief to the salaried class. Further, this decision of the government might be seen as a step towards the 2019 elections.

Two slabs possible

As per the government recent steps and the methodology of taxing the rich higher, we may see for the first time in history two slabs. One of the people having income up to Rs.10 lakh and another for the people having income more than 10 lakh. People having income less than 10 lakh will enjoy fewer tax rates while people having income more than 10 lakh will be taxed at higher rate.

Income tax slab for the financial year 2018-19/ AY 2019-20

The income tax slab for the financial year 2018-19 for individuals (both men & women) may be the following:

Particulars	Tax rate
Income up to Rs.3,00,000	No tax
Income from Rs.3,00,000 to 5,00,000	5%
Income from 5,00,000 to 10,00,000	20%
Income more than Rs.10,00,000/-	30%

Surcharge: 10% of the income tax, where the total income exceeds Rs.50 lakh to 1 crore or 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% of the total of income tax and surcharge.

Senior citizen slab for the financial year 2018-19

The income tax slab for senior citizen (60 years old or more but less than 80 years old) (Both men and women)

Particulars	Tax rate
Income up to Rs.3,50,000	No tax
Income from Rs.3,50,000 to 5,00,000	5%
Income from 5,00,000 to 10,00,000	20%
Income more than Rs.10,00,000/-	30%

Surcharge: 10% of the income tax, where the total income exceeds Rs.50 lakh to 1 crore or 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% of the total of income tax and surcharge.

Super Senior citizen slab for the financial year 2018-19

The income tax slab for senior citizen (More than 80 years old) (Both men and women)

Particulars	Tax rate
Income up to Rs.5,00,000	No tax
Income from 5,00,000 to 10,00,000	20%
Income more than Rs.10,00,000/-	30%

Surcharge: 10% of the income tax, where the total income exceeds Rs.50 lakh to 1 crore or 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% of the total of income tax and surcharge.

Conclusion

The above income tax slab is only a wishful plan and may become real if the same is proposed by the budget 2018 and approved by the parliament in this behalf. If you want to file your income tax return, then file the same only after taking due care. Email us at info@hubco.in for further queries.