tax

Income Tax Calculator for 2017-18 (AY 2018-19) For Resident Individuals & HUFs

Income Tax is governed by the infamous law of Income Tax Act, 1961. Income Tax in simple terms is a certain percentage of your income paid to the Government. An individual pays the Government Income Tax in order to help fund the developments in Infrastructure, paying the salaries of State and or Central Government and to enable smooth functioning of the economy.

Income Tax calculator takes into account the different factors in order to determine the amount of tax to be paid.

The Basic Types of Taxes and Assessee Pays to the Government

There are two types of Taxes under the provision of Income Tax Act, namely:

  • Direct Taxes
    Direct Taxes is levied by the Government, borne by the individual and paid by the same individual. For example:

    • Income Tax
    • Capital Gains Tax
    • Securities Transaction Tax
  • Indirect Taxes
    Indirect Taxes is levied by the Government, borne by an individual and paid by the final consumer. For Example:

    • VAT
    • Sales Tax
    • Service Tax

However, indirect taxes have been replaced with a uniform tax called as Goods and Services Tax (GST) in the year of 2017.

 

Income Tax and its Applicability

Income Tax in simple terms is a source of income for the Government. They utilize this tax amount for the development of the nation as a whole. The rate on which income tax is deducted depends upon the applicability of Income Tax to individuals.

Income Tax Calculator takes in to account the type of assessee based on which different slab rates for income tax come into the picture.

Income Tax is Applicable to the following Assessee:

  • An Individual
  • Association of Persons (AOP)
  • Body of Individuals (BOI)
  • Hindu Undivided Family (HUF)
  • Corporative Societies
  • Businesses and other corporate houses
  • Other Establishments that generate Income.

Income Tax Calculator Depending On Income Slab Rates Specified for Individual and HUF

Below mentioned are the Income tax Slab Taxes for the Assessment Year 2018-2019 which is relevant to the earned income during the Previous Year starting from 1st April 2017 ending on 31st March 2018.

Income Tax Calculator for Resident Individual (Below 60 Years of Age) & Hindu Undivided Family (HUF)

Slabs of Income Rates of Taxes
When the taxable income is not more than Rs. 2,50,000/- NIL
When the income taxable is greater than Rs. 2,50,000/- but doesn’t exceed Rs. 5,00,000/- 5% of the amount by which the income taxable is greater than Rs. 2,50,000/-
When income taxable is greater than Rs.5, 00,000/- but is not more than Rs. 10,00,000/-. Rs. 12,500/- + Twenty Percent of the amount by which income taxable is greater than Rs.5,00,000/-.
Where the income taxable is greater than Rs. 10,00,000/-. Rs. 112,500/- + Thirty Percent of the amount by which the income taxable is greater than Rs. 10,00,000/-.

Income Tax Calculator Resident Individual ( 60 Years of Age and Above but less than 80 Years of Age)

Slabs of Income Rates of Taxes
When the taxable income is not more than Rs. 3,00,000/- NIL
When the income taxable is greater than Rs. 3,00,000/- but doesn’t exceed Rs. 5,00,000/- 5% of the amount by which the income taxable is greater than Rs. 3,00,000/-
When income taxable is greater than Rs.5,00,000/- but doesn’t exceed Rs. 10,00,000/-. Rs. 10,000/- + Twenty Percent of the amount by which income taxable is greater than Rs.5,00,000/-.
Where the income taxable is greater than Rs. 10,00,000/-. Rs. 110,000/- + Thirty Percent of the amount by which the income taxable is greater than Rs. 10,00,000/-.


A Tax Relief Is Provided u/s 87A.

In case an individual has a total income not exceeding Rs. 3,50,000/-, the individual will pay income tax chargeable on the income or Rs. 2,500/-, whichever is less

Income Tax Calculator Resident Individual (Above 80 Years of Age)

Slabs of Income Rates of Taxes
When the taxable income is not more than Rs. 5,00,000/- NIL
When the income taxable is greater than Rs. 5,00,000/- but doesn’t exceed Rs. 10,00,000/- 20% of the amount which is more than Rs. 5,00,000/-
When income taxable is greater than Rs. 10,00,000/-. Rs. 1, 00,000/- + 30% of the amount by which income taxable is greater than Rs. 10, 00,000/-.

What is the amount of Surcharge to be paid?

  • When taxable income is higher than Rs. 50 lacs and up to 1 crore then, 10% of the Income Tax.
  • When taxable income is higher than Rs. 1 crore, 15% of the Income Tax is to be paid as Surcharge

    However, the amount of Income Tax and Surcharge will not exceed the amount of income tax payable on a taxable income of Rs. 50 lacs or 1 crore as the case may be, by more than the amount of increase in taxable income. Further Education Cess up to 3% of the total of Income Tax and Surcharge is paid.

Income tax is paid on a monthly basis however we calculate income tax on an annual basis. Income tax calculator varies depending upon the type of assessee and the rates applicable to the assessee.