Income Tax Slabs for individual
|Effective Income Tax slab for individuals||Rates of Income Tax|
|Income up to Rs. 2.5 Lacs||0%|
|Income from Rs. 2.5 Lakh to 5 Lakh(Newly Introduced)||5%|
|Income from Rs. 5 Lakh to 10 Lakh||20%|
|Income from Rs. 10 Lakh and above||30%|
2. Surcharge of 10% has been introduced for income above Rs. 50 Lakh. Earlier it was Rs. 1 Cr.
3. Presently, income from Long Term Capital Gain on immovable property is exempt, if property sold after 3 years. It has been reduced to 2 years now.
4. Income Tax Rate for all Companies having turnover below Rs. 50 Cr. will be 25%. Earlier it was 30%.
5. Expenditure in cash will be allowed as business expenditure only upto Rs. 10,000/-. Earlier it was Rs. 20,000/-
6. No cash transaction will be allowed above 3 Lakhs.
7. Donations in cash for charitable purposes will be allowed only upto Rs. 2,000/- Earlier it was Rs. 10,000/-
8. Political contribution in cash will be allowed only upto Rs. 2,000/-. Earlier it was Rs. 20,000/-
9. Threshold for maintenance of books of accounts have been increased under section 44AA.
10. No scrutiny in case of filing income tax return first time for income upto Rs. 5 Lakh provided Income Tax Department do not possess incriminating data of the assesse.