In FY 2017-18 (AY 2018-19), Budget 2017 cut the Rs2.5L-Rs5L slab from 10% to 5% — the single biggest relief for individual taxpayers that year, saving up to Rs12,500 (before cess). The Section 87A rebate was reduced to Rs2,500 with a tighter Rs3.5L income cap, a new 10% surcharge was introduced for the Rs50L-Rs1Cr bracket, and a 3% education cess applied.
This page documents the slabs that applied to FY 2017-18 only. They are not the current rates. For the live financial year (FY 2025-26 / AY 2026-27) under the new default regime, see the current income tax slabs.
Income Tax Slabs — FY 2017-18
The slab rates that applied to a resident individual below 60 years of age for FY 2017-18 (there was only one regime that year; the new/old regime choice began from FY 2020-21).
| Income Slab | Tax Rate | Tax on the Slab |
|---|---|---|
| Up to Rs2,50,000 | Nil | — |
| Rs2,50,001 - Rs5,00,000 | 5% | Up to Rs12,500 |
| Rs5,00,001 - Rs10,00,000 | 20% | Up to Rs1,00,000 |
| Above Rs10,00,000 | 30% | On income above Rs10L |
Basic exemption Rs2.5L for individuals below 60. Rates as legislated by the Finance Act, 2017 for AY 2018-19.
Senior & Super-Senior Citizens — FY 2017-18
Senior citizens (60-79) had a higher basic exemption of Rs3,00,000, and super-senior citizens (80+) of Rs5,00,000. The 5% slab rate cut applied to them too.
| Income Slab | Senior (60-79) | Super-Senior (80+) |
|---|---|---|
| Up to Rs2,50,000 | Nil | Nil |
| Rs2,50,001 - Rs3,00,000 | Nil | Nil |
| Rs3,00,001 - Rs5,00,000 | 5% | Nil |
| Rs5,00,001 - Rs10,00,000 | 20% | 20% |
| Above Rs10,00,000 | 30% | 30% |
Super-senior citizens (80+) had a Rs5L exemption, so no tax on the first Rs5,00,000.
Want to see how these compare to the current year?
View FY 2025-26 slabs →Surcharge, Cess & 87A Rebate — FY 2017-18
Budget 2017 introduced a new 10% surcharge for the Rs50L-Rs1Cr bracket, retained the existing 15% surcharge above Rs1Cr, and revised the Section 87A rebate to Rs2,500 with a tighter Rs3.5L cap.
| Item | Rate / Amount | Applicability |
|---|---|---|
| Section 87A rebate | Rs2,500 (max) | Total income up to Rs3,50,000 |
| Surcharge (new in Budget 2017) | 10% | Income between Rs50 lakh and Rs1 crore |
| Surcharge (existing) | 15% | Income above Rs1 crore |
| Education Cess | 2% | On income tax + surcharge |
| Secondary & Higher Education Cess | 1% | On income tax + surcharge |
| Total cess | 3% | On income tax + surcharge |
The 4% Health & Education Cess replaced the 3% education cess only from FY 2018-19.
How Tax Was Computed — FY 2017-18
Taxable income Rs4,00,000
Taxable income Rs8,00,000
Because income up to Rs3.5L got the full Rs2,500 rebate under 87A, an individual with taxable income up to Rs3,50,000 effectively paid no income tax in FY 2017-18.
Deductions for Salaried — FY 2017-18
The flat standard deduction was not available in FY 2017-18 — it returned only from FY 2018-19. Salaried employees instead claimed transport allowance and medical reimbursement.
| Allowance | Annual Limit | Condition |
|---|---|---|
| Transport allowance | Rs19,200 | Rs1,600/month; doubled for physically disabled |
| Medical reimbursement | Rs15,000 | Bills submitted to employer |
| Combined benefit | Rs34,200 | Replaced by flat standard deduction from FY 2018-19 |
Chapter VI-A deductions (80C, 80D, etc.) were also available on top of these.
FY 2016-17 vs 2017-18 vs 2018-19
| Feature | FY 2016-17 | FY 2017-18 | FY 2018-19 |
|---|---|---|---|
| Rs2.5L-5L rate | 10% | 5% | 5% |
| 87A rebate amount | Rs5,000 | Rs2,500 | Rs2,500 |
| 87A income limit | Rs5,00,000 | Rs3,50,000 | Rs3,50,000 |
| Surcharge 10% | Not applicable | Rs50L-1Cr (new) | Rs50L-1Cr |
| Cess rate | 3% | 3% | 4% (Health & Education) |
| Standard deduction | Not available | Not available | Rs40,000 (introduced) |
For live rates always refer to the current-year page and the official portal.
These rates are historical. See what applies to you this year.
Current income tax slabs →Frequently Asked Questions
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