Income Tax Slab

Income Tax Slabs for FY 2017-18 (AY 2018-19) and FY 2016-17 (AY 2017-18)

Given below are the rates at which income is taxed in India for income earned in different slabs, and through various heads of income.

The tax rates and Tax Slabs have been arranged depending on the profile and category of the taxpayer / tax paying entity.


New Income Tax Slab Rates for FY 2017-18 (AY 2018-19) - Budget 2017

In what could be the best possible news of the year for taxpayers, as per the Budget for the fiscal year 2017-18 announced by Finance Minister Arun Jaitley new income tax slabs have been announced.

The Finance Minister also announced that income tax for small companies with an annual turnover of Rs.50 crore would be reduced. Income tax has been reduced to 25% from the previous rate of 30%. It was also announced that all individuals who earn less than Rs.5 lakh per year will have to file a one page I-T return form. The revised tax rates are as given below -

Income tax slab for individual tax payers & HUF (less than 60 years old) (both men & women)

Income Tax Slab	Tax Rate
Income up to Rs. 2,50,000*	No Tax
Income from Rs. 2,50,000 – Rs. 5,00,000	5%
Income from Rs. 5,00,000 – 10,00,000	20%
Income more than Rs. 10,00,000	30%
Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs. 1 crore.
Cess: 3% on total of income tax + surcharge.
* Income upto Rs. 2,50,000 is exempt from tax if you are less than 60 years old.

Income tax slab for individual tax payers & HUF (60 years old or more but less than 80 years old) (both men & women)

Income Tax Slab	Tax Rate
Income up to Rs. 3,00,000*	No Tax
Income from Rs. 3,00,000 – Rs. 5,00,000	5%
Income from Rs. 5,00,000 – 10,00,000	20%
Income more than Rs. 10,00,000	30%
Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
* Income up to Rs. 3,00,000 is exempt from tax if you are more than 60 years but less than 80 years of age.

Income tax slab for super senior citizens (80 years old or more) (both men & women)

Income Tax Slab	Tax Rate
Income up to Rs. 2,50,000*	No Tax
Income up to Rs. 5,00,000*	No Tax
Income from Rs. 5,00,000 – 10,00,000	20%
Income more than Rs. 10,00,000	30%
Surcharge: 10% of income tax, where total income is between Rs. 50 lakhs and Rs.1 crore. 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income up to Rs. 5,00,000 is exempt from tax if you are more than 80 years old.

Customers should note that the Income Tax Exemption limit per FA 2016 is up to a maximum of Rs.2,50,000 for all individuals and HUF other than those who are covered in Part(II) or Part(III).

Income Tax Slab Rates for FY 2016-17 (AY 2017-18)

These income tax slab rates are also applicable for :

* FY 2015-16 (AY 2016-17)

* FY 2014-15 (AY 2015-16)

1. Income Tax Slab for Individual Tax Payers :

Income Tax Slab	Rate
Up to Rs.2,50,000	No tax
Rs.2,50,000 to Rs.5,00,000	10%
Rs.5,00,000 to Rs.10,00,000	20%
Over Rs.10,00,000	30%















Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.Plus:
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
• Rebate under Section 87A: For individuals with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).

2. Income Tax Slab for Hindu Undivided Families (HUF) :

Income Tax Slab	Rate
Up to Rs.2,50,000	No tax
Rs.2,50,000 to Rs.5,00,000	10%
Rs.5,00,000 to Rs.10,00,000	20%
Over Rs.10,00,000	30%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
• Rebate under Section 87A: For HUFs with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).

3. Income Tax Slab for legal Entities Registered as Associations of Persons :

Income Tax Slab	Rate
Up to Rs.2,50,000	No tax
Rs.2,50,000 to Rs.5,00,000	10%
Rs.5,00,000 to Rs.10,00,000	20%
Over Rs.10,00,000	30%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
• Rebate under Section 87A: For Associations of Persons with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).

4. Income Tax Slab for Legal Entities Registered as Bodies of Individuals :

Income Tax Slab	Rate
Up to Rs.2,50,000	No tax
Rs.2,50,000 to Rs.5,00,000	10%
Rs.5,00,000 to Rs.10,00,000	20%
Over Rs.10,00,000	30%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
• Rebate under Section 87A: For Bodies of Individuals with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).
5. Income Tax Slab for Other Artificial Judicial Persons :

Income Tax Slab	Rate
Up to Rs.2,50,000	No tax
Rs.2,50,000 to Rs.5,00,000	10%
Rs.5,00,000 to Rs.10,00,000	20%
Over Rs.10,00,000	30%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
• Rebate under Section 87A: For Judicial entities with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).

6. For Resident Senior Citizens (Over the Age of 60, and Under the Age of 80 on the last day of the Previous Year) :

Income Tax Slab	Rate
Up to Rs.3,00,000	No tax
Rs.3,00,000 to Rs.5,00,000	10%
Rs.5,00,000 to Rs.10,00,000	20%
Over Rs.10,00,000	30%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
• Rebate under Section 87A: For Resident Indian Senior Citizen taxpayers with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).

7. For Resident Super Senior Citizens (who are over the age of 80 as on the last day of the Previous Year) :

Income Tax Slab	Rate
Up to Rs.5,00,000	No tax
Rs.5,00,000 to Rs.10,00,000	20%
Over Rs.10,00,000	30%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.

8. For Partnership Firms:

Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%.
Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.

9. For Local Authorities :

Local Authorities are to be taxed at the rate of 30%.
Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.

10. For Domestic Companies :

Domestic Companies are to be taxed at the rate of 30%.
Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 7% of the income tax amount. If income is greater than Rs.10,00,00,000 – 12% of the income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.

11. For Foreign Companies :

Nature	Rate
If the income received by the Foreign Company is in the form of royalties paid by the Indian Government in relation to agreements made with an Indian concern (after March 31st, 1961, and before April 1st, 1976)	50%
If the income received is in the form of fees for technical services rendered for agreements made with Indian concerns (after February 29th, 1964, and before April 1st, 1976)	50%
Any other income	40%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 2% of the income tax amount. If income is greater than Rs.10,00,00,000 – 5% of the income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.

12. For Co-operative Societies :

Income Tax Slab	Rate
Up to Rs.10,000	10%
Rs.10,000 to Rs.20,000	20%
Over Rs.20,000	30%

Plus:
• Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
• Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
• Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.