New Income Tax Slabs and Rates for Financial Year: 2017-18

Age Group : Below 60 years
 
Income Tax Slab Individuals below the age of 60 years
Up to ₹ 2,50,000 Nil
₹ 2,50,001 to 5,00,000 5% of total income exceeding ₹ 2,50,000
₹ 5,00,001 to 10,00,000 ₹12,500 + 20% of total income exceeding ₹ 5,00,000
Above ₹ 10,00,000 ₹ 1,12,500 + 30% of total income exceeding ₹ 10,00,000

Income tax slabs after the Budget announcement on 1st February, 2017^

Income Tax Slab Individuals below the age of 60 years
Up to ₹ 2,50,000 Nil
₹ 2,50,001 to 5,00,000 5% of total income exceeding ₹ 2,50,000
₹ 5,00,001 to 10,00,000 ₹ 12,500 + 20% of total income exceeding ₹ 5,00,000
Above ₹ 10,00,000 ₹ 1,12,500 + 30% of total income exceeding ₹ 10,00,000
Now, let’s examine the salary components of Ravi, Ramesh & Rahul to get a clear picture
 
  Particulars (₹) Ravi Ramesh Rahul
  Annual Salary 5,00,000 10,00,000 15,00,000
  Less: Medical Reimbursement 15,000 15,000 15,000
  Less : Deduction u/s 80C 80,000 1,50,000 1,50,000
  Less : HRA deduction as per section 10(13A) 92,000 1,00,000 1,50,000
  Gross Taxable Income (GTI) 3,13,000 7,35,000 11,85,000
         
  Tax computation on GTI
  Up to ₹2,50,000 - - -
  ₹ 2,50,001 to 5,00,000 6,300 25,000 25,000
  ₹ 5,00,001-10,00,000 - 47,000 1,00,000
  Above ₹ 10,00,001 - - 55,500
A Total tax 6,300 72,000 1,80,500
B Less Rebate u/s 87A 5,000 - -
C 2% Education & 1% Secondary & Higher Education Cess on (A-B) 39 2,160 5,415
  Tax Payable (A-B+C) 1,339 74,160 1,85,915

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^Source: http://economictimes.indiatimes.com/wealth/tax/latest-income-tax-slabs/articleshow/56201289.cms

ADVT No - W/II/1045/2016-17