Income Tax Calculation under 2017 Budget for the FY 2017-18 / AY 2018-19

Much awaited national budget for the Financial Year 2017-18 was introduced by the Union Finance Minister Mr. Arun Jaitley on February 1, 2017. The Budget 2017 has come up with lots of economic relief to the Aam Admi (common man). One of the major highlight of the Budget 2017 is the restructuring of tax structure so as to benefit the Aam Admi, which was indeed a great relief to the common man especially after the Demonetization of November 8, 2016.

Let’s have a look on the Tax Calculation under Budget, 2017. The good news for middle income group or the salaried class (Taxable Income up to Rs. 5 Lacs) is reduction of Tax slab from 10% to 5%.

Income Slab	Tax Rate
Up to 3 Lacs	Nil
3 Lacs – 5 Lacs	5%
5 Lacs – 10 Lacs	20%
10 Lacs – 50 Lacs	30%
50 Lacs – 1 Crore	30% + 10% surcharge
Above 1 Crore	30% + 15% surcharge

Tax Rebate of Rs. 2500 will be available for those whose Taxable Income falls within 2.5 Lacs – 5 Lacs. However, such Tax Rebate is not applicable if your Taxable Income is above 5 Lacs.

Budget further reduced the long term capital gains of tax on property from 3 years to 2 years.