On February 01, 2018, the Finance Minister Arun Jaitley will unveil the Union Budget 2018-19. This budget is very significant, as it is the first budget post GST and the last full budget of the Modi Government before the general election in 2019. This budget will be the last chance for the Modi government to woo the large Indian mass. Therefore, the All India Pensioners Association of CBEC expects a host of measures such as increase in tax exemption limit and re introduction of standard deduction for the salaried class in order to please them. The Association also expects to grant more benefits to women employees in Budget-2018.
In the previous budget i.e. Union Budget 2017-18, the government had reduced the tax rate for individuals having income between Rs2.5-5 lakh to 5% from 10%. Therefore, all individual taxpayers’ subsequent tax slabs got the tax benefit of Rs12,500. However, the common man particularly pensioner is still reeling under the burden of growing expenses. Hence, the government should transform the whole individual tax slabs to provide some substantial relief to the people.
In the previous budget i.e. Union Budget 2017-18, the government had reduced the tax rate for individuals having income between Rs2.5-5 lakh to 5% from 10%. Therefore, all individual taxpayers’ subsequent tax slabs got the tax benefit of Rs12,500. However, the common man particularly pensioner is still reeling under the burden of growing expenses. Hence, the government should transform the whole individual tax slabs to provide some substantial relief to the people.
Below are the current individual tax slabs and expected individual tax slabs.
Table 1: Current Individual tax slabs.
| Income | Tax rate |
| Individual tax payers | |
| Up to Rs2,50,000 | No tax |
| Rs2,50,001 – 5,00,000 | 5% |
| Rs5,00,001 – 10,00,000 | 20% |
| More than Rs10,00,000 | 30% |
| Senior citizens who are 60 years old and above but less than 80 years | |
| Up to Rs3,00,000 | No tax |
| Rs3,00,001 – 5,00,000 | 5% |
| Rs5,00,001 – 10,00,000 | 20% |
| More than Rs10,00,000 | 30% |
| Senior Citizens who are 80 years old and above | |
| Up to Rs5,00,000 | No tax |
| Rs5,00,001 – 10,00,000 | 20% |
| More than Rs10,00,000 | 30% |
Table 2: Expected Individual tax slabs for salary class( Standard deduction shall be applicable to salary class including pensioners)
| Income | Tax rate |
| Individual tax payers | |
| Up to Rs3,00,000 ( Plus 2 lakh standard deduction) | No tax |
| Rs5,00,001 – 10,00,000 | 5% |
| Rs10,00,001 – 15,00,000 | 20% |
| More than Rs15,00,000 | 30% |
| Senior citizens who are 60 years old and above but less than 80 years | |
| Up to Rs5,00,000( Plus 2 lakh standard deduction) | No tax |
| Rs7,00,001 –10,00,000 | 5% |
| Rs10,00,001 –15,00,000 | 20% |
| More than Rs15,00,000 | 30% |
| Senior Citizens who are 80 years old and above | |
| Up to Rs7,50,000( Plus 2 lakh standard deduction) | No tax |
| Rs9,50,001 – 15,00,000 | 20% |
| More than Rs15,00,000 | 30% |
Table3: Expected Individual tax slabs for salary class , women( Standard deduction shall be applicable to salary class including pensioners)| Income | Tax rate |
| Individual tax payers | |
| Up to Rs3,00,000 ( Plus 3 lakh standard deduction) | No tax |
| Rs6,00,001 – 10,00,000 | 5% |
| Rs10,00,001 – 15,00,000 | 20% |
| More than Rs15,00,000 | 30% |
| Senior citizens who are 60 years old and above but less than 80 years | |
| Up to Rs5,00,000( Plus 3 lakh standard deduction) | No tax |
| Rs8,00,001 –10,00,000 | 5% |
| Rs10,00,001 –15,00,000 | 20% |
| More than Rs15,00,000 | 30% |
| Senior Citizens who are 80 years old and above | |
| Up to Rs7,50,000( Plus 3 lakh standard deduction) | No tax |
| Rs10,50,001 – 15,00,000 | 20% |
| More than Rs15,00,000 | 30% |
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