What is Income Tax Slab ?
Your Income Tax Slab determines the income tax rate at which you will be taxed in India. The income tax department has issued various slab rates for different categories of persons to maintain consistency and uniformity.
Your Income Tax Slab depends on the various factors-
• Your Status – An Individual, a HUF, a company, a firm, an AOP/BOI, local authority
• Your quantum of Income & its Nature
• Your Age
Q1. I am salaried employee, which income tax slab is applicable on me?
Ans: For a salaried employee the income tax slab for individuals will be applicable. Choose the correct slab rate according to your age. Please note there is no difference in the tax slab based on gender.
Q2.Which income tax slab rates would be applicable if I am filing my Income Tax Return for F.Y. 2016-17?
Ans: For calculating your income tax rate for F.Y. 2016-17, you need to check the Income Tax Slab for F.Y. 2016-17 or A.Y. 2017-18.
Q3.How to calculate my Income Tax amount from the Income Tax Slab?
Ans: Let us take example of Ms. Ruchi, age 29 years with an income of Rs.10,50,000, income tax deduction under section 80C Rs.150,000 to understand how to calculate the income tax amount for F.Y 17-18.
First we will check the applicable income tax slab, in her case the first slab for individuals less than 60 years would be applicable.
Her income to be considered for calculating the Income tax amount =Total Income – Income Tax Deductions
10,50,000 – 1,50,000 = 9,00,000
Income (Rs.) Income Tax Rates Tax Calculation Income Tax Payable(Rs.)
Upto 2,50,000 Nil 0 0
2,50,000-5,00,000 5% 5% of 2,50,000 12,500
5,00,000- 10,00,000 20% 20% of 4,00,000 (9,00,000-5,00,000) 80,000
Calculation of total amount of tax payable
Income Tax Amount Rs, 92,500
Add :EC@2% on Income Tax Rs. 1,850
Add: SHEC@1% on Income Tax Rs. 925
Total Income Tax Payable Rs. 95,275