The table below has the complete information about the income tax slab that will be followed according to the recent budget issue:
|Annual Income Slabs||Rates|
|Below 3 lakhs||Nil|
|Above Rs 3 lakhs but less than Rs 5 lakhs||5%|
|Above Rs 5 lakhs but less than Rs 10 lakhs||20%|
|Above Rs 10 lakhs||30%|
As can be seen from the table above, there is no tax applicable on senior citizen’s income in case their salary is below Rs 3 lakhs. Also, there has been a recent change in the percentage of tax applicable for the salary bracket of Rs. 3 lakhs to Rs.5 lakhs. While till last year, this tax percentage was 10%, from 1st April 2017, this has been reduced to 5%.
The tax structure is revisied every year in the Union Finance Budget and any changes as recommended by the Finance Ministry in co-ordination with the President of India are announced in this budget announcement made around February every year. The changes proposed in the budget are then made effective for the next fiscal that begins from 1st April of that year.