Budget 2018-19: Income Tax Slabs, Exemption Limit And Rates From Year 2008 to 2017

New Delhi, Jan 30: Union Finance Minister Arun Jaitley will table Budget for the financial year 2018-19 on Thursday, February 1. In last 10 years, there have been several changes in income tax slabs,

New Delhi, Jan 30: Union Finance Minister Arun Jaitley will table Budget for the financial year 2018-19 on Thursday, February 1. In last 10 years, there have been several changes in income tax slabs, rates and exemptions limits. Income tax exemption limit, which was Rs 1.5 lakh in 2008-09, now stands at Rs 2.5 lakh. Ahead of the presentation of the Budget 2018, speculations are rife that the government may increase the exemption limit to Rs 3 lakh.

Ahead of the Budget 2018, Prime Minister Narendra Modi said that it will strengthen the economy of India. “The Budget Session is important. The world is optimistic about India. Agencies like World Bank and IMF have been giving an optimistic opinion of the country,” Modi said. Below are the crucial changes made in income tax slabs, rates and exemption limit between 2008 to 2017.

2017-18:

The government reduced income tax rate from 10 per cent to 5 per cent for individual assesses between incomes of Rs 2.5 lakhs to Rs 5 lakhs. It also announced surcharge of 10 per cent for those whose annual income is Rs 50 lakh to Rs 1 crore. The 15 per cent surcharge on Rs 1 crore or more continues without any change.

2016-17:

In order to to lessen tax burden on individuals with income upto Rs 5 lakhs, the government raised the ceiling of tax rebate under section 87A from Rs 2000 to Rs 5000. It increased the limit of deduction of rent paid under section 80GG from Rs 24000 per annum to Rs 60,000, to provide relief to those who live in rented houses. It also raised surcharge to 15 per cent from 12 per cent for individuals, other than companies, firms and cooperative societies having income above Rs 1 crore.

2015-16:

The Budget 2016-16 was senior citizen-friendly. The government increased the limit of deduction in respect of health insurance premium for individuals aged below 60 years and senior citizens. It raised deduction limit of Rs 60,000 towards expenditure on account of specified diseases of serious nature to Rs 80,000 in case of very senior citizens. It also announced service tax exemption on Varishta Bima Yojana.

2014-15:

In this year, the government announced new income tax slabs for men, women, senior citizens and very senior citizens.

New Tax slab (Men and Women):

• Income up to Rs 2.5 lakh – Nil
• Income above Rs 2.5 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs 10 lakh – 20 per cent
• Income above Rs 10 lakh – 30 per cent

New Tax slab (Senior Citizens)

• Income up to Rs 3 lakh – Nil
• Income above Rs 3 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs 10 lakh – 20 per cent
• Income above Rs 10 lakh – 30 per cent

New Tax slab (Very Senior Citizens)

• Income above Rs 5 lakh and up to Rs 10 lakh – 20 per cent
• Income above Rs 10 lakh – 30 per cent
• The deduction limit on account of interest on loan in respect of self-occupied house property increased from Rs 1.5 lakh to Rs 2 lakh.
• Kissan Vikas Patra (KVP) was re-launched after it was discontinued in 2011.

2013-14:

The government announced deduction under Rajiv Gandhi Equity Savings Scheme for three years against the existing period of one year. The income limit was also raised from Rs 10 lakh to Rs 12 lakh. It also launched Inflation Indexed Bonds or Inflation Indexed National Security Certificates.

2012-13:

New tax slabs were announced.

New Tax slab (Men and Women):

• Income up to Rs 2 lakh – Nil
• Income above Rs 2 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs 10 lakh – 20 per cent
• Income above Rs 10 lakh – 30 per cent

New Tax slab (Senior Citizens)

• Income up to Rs 2.5 lakh – Nil
• Income above Rs 2 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs 10 lakh – 20 per cent
• Income above Rs 10 lakh – 30 per cent

New Tax slab (Very Senior Citizens)

• Income above Rs 5 lakh and up to Rs 10 lakh – 20 per cent
• Income above Rs 10 lakh – 30 per cent
• Interest income up to Rs 10,000 for savings bank accounts exempted from income tax
• Government launched Rajiv Gandhi Equity Savings Scheme

2011-12:

New tax slabs were announced.

New Tax slab (Men and Women):

• Income up to Rs 1.8 lakh – Nil
• Income above Rs 1.8 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs.8 lakh – 20 per cent
• Income above Rs 8 lakh – 30 per cent

New Tax slabs (Women Up to 60 years)

• Income up to Rs 1.9 lakh – Nil
• Income above Rs 1.9 lakh and up to Rs 5 lakh 10 per cent
• Income above Rs 5 lakh and up to Rs 8 lakh 20 per cent
• Income above Rs 8 lakh 30 per cent

New Tax slab (Very Senior Citizens – Age limit was reduced from 65 years to 60 years and a new category of very senior citizens, 80 years and above, was introduced.)

• Income up to Rs 2.5 lakh – Nil
• Income above Rs 2.5 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs.8 lakh – 20 per cent
• Income above Rs 8 lakh – 30 per cent

2010-11:

New tax slabs were announced.

New Tax slabs (Men Up to 65 years)

• Income up to Rs 1.6 lakh – Nil
• Income above Rs 1.6 lakh and up to Rs.5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs.8 lakh – 20 per cent
• Income above Rs.8 lakh – 30 per cent

New Tax slabs (Women Up to 65 years)

• Income up to Rs 1.9 lakh – Nil
• Income above Rs.1.9 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs.8 lakh – 20 per cent
• Income above Rs 8 lakh – 30 per cent

New Tax slabs (Senior Citizens)

• Income up to Rs 2.4 lakh – Nil
• Income above Rs 2.4 lakh and up to Rs 5 lakh – 10 per cent
• Income above Rs 5 lakh and up to Rs 8 lakh – 20 per cent
• Income above Rs 8 lakh – 30 per cent

2009-2010:

New tax slabs were announced.

New Tax slabs (Men Up to 65 years)

• Up to Rs 160,000 – Nil
• Rs.160,001 to Rs.300,000 – 10 per cent
• Rs.300,001 to Rs.500,000 – 20 per cent
• Rs.500,001 and above – 30 per cent

New Tax slabs (Women Up to 65 years)

• Up to Rs 190,000 Nil
• Rs.190,001 to Rs.300,000 10 per cent
• Rs.300,001 to Rs.500,000 20 per cent
• Rs.500,001 and above 30 per cent

New Tax slabs (Senior Citizens)

• Up to Rs 240,000 – Nil
• Rs 240,001 to Rs 300,000 – 10 per cent
• Rs 300,001 to Rs 500,000 – 20 per cent
• Rs 500,001 and above – 30 per cent
• The surcharge of 10 per cent on personal income tax removed

2008-09:

New tax slabs were announced.

New Tax slabs (Men Up to 65 years)

• Up to Rs 150,000 – Nil
• Rs 150,001 to Rs 300,000 – 10 per cent
• Rs.300,001 to Rs.500,000 – 20 per cent
• Rs.500,001 and above – 30 per cent

New Tax slabs (Women Up to 65 years)

• Up to Rs 180,000 – Nil
• Rs 180,001 to Rs 300,000 – 10 per cent
• Rs 300,001 to Rs 500,000 – 20 per cent
• Rs 500,001 and above – 30 per cent

New Tax slabs (Senior Citizens)

• Up to Rs 225,000 – Nil
• Rs 225,001 to Rs 300,000 – 10 per cent
• Rs 300,001 to Rs 500,000 – 20 per cent
• Rs 500,001 and above – 30 per cent
• Short-term capital gains tax rate increased from 10 per cent to 15 per cent.
• Banking Cash Transaction Tax (BCTT) withdrawn