Income Tax Slabs: Check out tax rates applicable from April 2017

New Delhi: Finance Minister Arun Jaitley slashed the income tax rate to 5 percent for individuals having income between Rs 2.5-Rs 5 lakh from the earlier tax rate of 10 percent.

So, would the change in the tax rate make a difference to other tax slabs as well? Check out the slabs given below which will come into effect from April 1, 2017(Assessment Year 2018-19): 

Income Tax: Applicable as on April 1, 2017

Up to annual income of Rs 2.5 lakh	Nil
From Rs 2,50,001 to  Rs 5 lakh	5%
From Rs 500,001 to Rs 10 lakh	20%
Above Rs 10 lakh	30%

For individuals up to 60 years of age there is no tax on annual income up to Rs 2.5 lakh.

Budget 2017 reduced the income tax rebate of up to Rs 5,000 to Rs 2,500 on the taxable income up to Rs 5 lakh.

The rebate on taxation of Rs 2,500 will be now available on taxable income of up to Rs 3.5 lakh. It means if an individual has a taxable income of Rs 3 lakh, his net tax liability will be zero. 

Budget 2017 has also levied a a new surcharge of 10 percent on taxable income of more than Rs 50 lakh but less than Rs 1 crore, in addition to a tax of 30 percent.

For taxable income of more than Rs 1 crore, then the surcharge will increase to 15 percent of tax plus education and higher education cess of 3 per cent. However, on taxable incomes where surcharges are applicable, tax payers get the benefit of marginal relief, if applicable.