Live Updates

  • 3:15 PM IST
    In the Union Budget 2018, Finance Minister Arun Jaitley kept the income tax rates and slabs unchanged and introduced a Rs 40,000 Standard Deduction for salaried employees and pensioners in lieu of transport and medical expenses. For senior citizens, exemption of interest income on bank deposits was raised to Rs 50,000 from the current Rs 10,000.

    Also, exemption on medical expenses on critical illness has been raised to Rs 1 lakh, he said in his 110 minute speech. Jaitley said a 10 per cent tax long on capital gains exceeding Rs 1 lakh made from the sale of shares has been introduced but those made till January 31 would be grandfathered. A 10 per cent tax on distributed income by equity-oriented mutual funds has also been proposed in the budget.
  • 1:03 PM IST

    Income

    Income Tax rate for 2017-18

    Income Tax rate for 2018-19

    Individual tax payers

    Up to Rs 2,50,000

    No tax

    No tax

    Rs 2,50,001 to Rs 5,00,000

    5%

    5%

    Rs 5,00,001 – 10,00,000

    20%

    20%

    More than Rs 10,00,000

    30%

    30%

    Senior citizens who are 60 years old and above but less than 80 years

    Up to Rs 3,00,000

    No tax

    No tax

    Rs 3,00,001 to Rs 5,00,000

    10%

    10%

    Rs 5,00,001 to Rs 10,00,000

    20%

    20%

    More than Rs 10,00,000

    30%

    30%

    Senior Citizens who are 80 years old and above

    Up to Rs 5,00,000

    No tax

    No tax

    Rs 5,00,001 to Rs 10,00,000

    20%

    20%

    More than Rs 10,00,000

    30%

    30%

  • 12:56 PM IST
    New Income Tax Slab 2018-19 LIVE News Updates: Arun Jaitley proposed to increase education cess to 4 per cent from 3 per cent to collect additional Rs 11,000 crore.
  • 12:49 PM IST

    New Income Tax Slab 2018-19 LIVE News Updates: Rs 1,00,000 medical allowance from income tax for senior citizens.

  • 12:41 PM IST

    New Income Tax Slab 2018-19 LIVE News Updates: Jaitley proposed to raise exemption of interest income on bank deposits to Rs 50,000 for senior citizens.

  • 12:39 PM IST
    New Income Tax Slab 2018-19 LIVE News Updates: Arun Jaitley also proposed to cut corporate tax to 25 per cent for firms upto Rs 250 crore annual turnover.
  • 12:38 PM IST

    New Income Tax Slab 2018-19 LIVE News Updates: In a relief for salaried taxpayers. Arun Jaitley proposed Standard Deduction of Rs 40000 under transport, medical reimbursement. The facility is extended to pensioners.

  • 12:34 PM IST

    New Income Tax Slab 2018-19 LIVE News Updates: No changes in income tax slabs, says Arun Jaitley.

New Delhi, Feb 1: Finance Minister Arun Jaitley will present the Union Budget 2018-19 in Lok Sabha today. Speculations are rife that the government may increase the income tax slabs from a minimum of Rs 2.5 lakh per annum to Rs 3 lakh or reduce the tax rate for individuals with annual income between Rs 2.5 lakh and Rs 5 lakh. We will be giving live updates on Arun Jaitley’s announcement on new income tax slab for the financial year 2018-19 in the Union Budget. Catch live updates on new income tax slab, tax rates and exemption limits announced in the Union Budget 2018-19. (Watch: Live Streaming of Union Budget 2018) Also Read - Income Tax Returns: Can You Save Tax by Gifting Money to Parents, Kids? Yes You Can | Here’s How  

At present, there are three slabs for income tax— 5 per cent income tax for individuals with annual income between Rs 2.5 lakh and Rs 5 lakh, 20 per cent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 per cent on income above Rs 10 lakh. It is expected that the common man may get more tax reliefs in the upcoming budget. Ahead of the Budget 2018, several commentators advocated the abolition of income tax, arguing that this would eradicate both tax evasion and black money at one stroke. Catch live updates on Union Budget 2018 here. Also Read - India Fast Moving From Tax Terrorism to Tax Transparency, Says PM Modi

The State Bank of India recently said in a report that the government must increase the income tax exemption limit from Rs 2.5 lakh to Rs 3 lakh. This will benefit 75 lakh taxpayers. It is also reported that the government may increase the limit of tax exemption from Rs 1.5 lakh to Rs 2 lakh under Section 80 C. There are speculations on whether Arun Jaitley will keep his promise of further reducing the corporate tax rates. Presenting the first full Budget of the present NDA government on February 28, 2015, Jaitley had proposed to reduce the rate of Corporate Tax from 30 per cent to 25 per cent. But it is yet to be done. Also Read - I-T Dept Exposes Rs 500 Crore Fake Bill Entry Operation Racket, Raids 42 Locations Across India

Income Tax Slabs For Financial Year 2017-18

Income Income Tax rate for 2016-17Income Tax rate for 2017-18
Individual tax payers
Up to Rs 2,50,000No taxNo tax
Rs 2,50,001 to Rs 5,00,00010%5%
Rs 5,00,001 – 10,00,00020%20%
More than Rs 10,00,00030%30%
Senior citizens who are 60 years old and above but less than 80 years
Up to Rs 3,00,000No taxNo tax
Rs 3,00,001 to Rs 5,00,00010%10%
Rs 5,00,001 to Rs 10,00,00020%20%
More than Rs 10,00,00030%30%
Senior Citizens who are 80 years old and above
Up to Rs 5,00,000No taxNo tax
Rs 5,00,001 to Rs 10,00,00020%20%
More than Rs 10,00,00030%30%
(Surcharge of 10 per cent on income of all individuals above Rs 50 lakh and less than Rs 1 crore and surcharge of 15 per cent on income above Rs 1 crore).

In the Union Budget 2018-19, the government may bring a new tax slab for people with income between Rs 5 and 7.50 lakh annually. In Budget 2017-18, Arun Jaitley had proposed a reduction of 5 per cent in income tax rate for individuals with income ranging between Rs 2.5 lakh to Rs 5 lakh. He had also announced surcharge of 10 per cent for those whose annual income is Rs 50 lakh to Rs 1 crore. Stay connected with us to get instant live updates on new income tax slabs.