08-02-2018
Major Announcements
For Individuals
Section 80D (medical premium) deduction for senior citizen raised to Rs.50,000
Benefit of tax free-withdrawal from NPS extended to non-employee subscribers
Standard deduction of Rs 40,000 reintroduced for salaried person. This deduction is proposed in lieu of deduction for medical reimbursements for Rs. 15,000 and travelling allowance for Rs. 19,600 per annum.
No change in slab rates but Cess has been increased to 4% from existing 3%.
Long-term Capital Gains arising from transfer of listed equity shares or units of equity oriented funds to be taxed at 10% in excess of Rs. 1 lakh.
For Corporates
No deduction under Chapter VIA-C shall be allowed if return is filed after due date.
Full tax exemption for Farm Producer Companies
Provisions to convert stock-in-trade into Capital Asset is rationalized
Dividend Distribution Tax will be levied on deemed dividend
Corporate Tax is reduced to 25% for companies having turnover of Rs. 250 crores or less in financial year 2016-17
GST
Now MSMEs having GSTIN will avail easy loan facility
Custom duty on mobile phones increased to 20% from 15%
Tax Rates for A.Y. 2018-19
Individual Male
Up to Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
*Surcharge: 10% if total income exceeds Rs. 50 lacs and 15% if total income exceeds Rs. 1 Crore
* Health & Education cess at 4% of Income Tax & Surcharge
* Relief u/s 87A up to Rs. 2,500 for resident individuals having total income of up to Rs. 3,50,000
Individual Female
Up to Rs. 2,50,000 Nil
Rs. 2,50,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
*Surcharge: 10% if total income exceeds Rs. 50 lacs and 15% if total income exceeds Rs. 1 Crore
* Health & Education cess at 4% of Income Tax & Surcharge
* Relief u/s 87A up to Rs. 2,500 for resident individuals having total income of up to Rs. 3,50,000
Senior Citizen
Up to Rs. 3,00,000 Nil
Rs. 3,00,001 to Rs. 5,00,000 5%
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
* Surcharge: 10% if total income exceeds Rs. 50 lacs and 15% if total income exceeds Rs. 1 Crore
* Health & Education cess at 4% of Income Tax & Surcharge
* Relief u/s 87A up to Rs. 2,500 for resident individuals having total income of up to Rs. 3,50,000
Super Senior Citizen
Up to Rs. 5,00,000 Nil
Rs. 5,00,001 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
* Surcharge: 10% if total income exceeds Rs. 50 lacs and 15% if total income exceeds Rs. 1 Crore
* Health & Education cess at 4% of Income Tax & Surcharge
Domestic Company
Tax Rate 30% **
MAT 18.5%
* Surcharge: 7% if total income exceeds Rs. 1 Crore and 12% if total income exceeds Rs. 10 Crores
* Health & Education cess at 4% of Income Tax & Surcharge
** Tax Rate is 25% if turnover or gross receipt of the company in the previous year 2016-17 doesn�t exceed Rs. 250 crore
Foreign Company
Tax Rate 40%
* Surcharge: 2% if total income exceeds Rs. 1 Crore and 5% if total income exceeds Rs. 10 Crores
* Health & Education cess at 4% of Income Tax & Surcharge
Partnership Firm
Tax Rate 30%
* Surcharge at 12% if total income exceeds Rs. 1 Crore.
* Health & Education cess at 4% of Income Tax & Surcharge