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

In the budget for FY 2017-18, the tax slabs for income up to Rs. 5 lakhs has gone down from 10% to 5%.

FY 2017-2018 Income Tax Slab changes

Income Slabs Tax Rate
2.5L to 5L 5% instead of 10%
5L to 10L 20%(same as before)
10L+ 30% (same as before)
50L – 1 Cr 10% Surcharge
1 Cr + 15% (same as before)

Note: There is also a tax rebate of up to Rs.2,500 for a taxable income up to Rs. 3.5 lakhs.

PART I: Income Tax Slab for Individual Tax Payers & HUF (Less Than 60 Years Old) (Both Men and Women)

Income Slabs 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 exceeds Rs.50 lakh up to Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) (Both Men and Women)

Income Slabs 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 exceeds Rs.50 lakh upto Rs.1 crore.

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Cess 3% on total of income tax + surcharge.

PART III: Income Tax Slab for Senior Citizens (80 Years Old Or More) (Both Men and Women)

Income Slabs Tax Rate
Income up to Rs 2,50,000* No tax
Income from 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: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

Income Tax Slab for Domestic Companies for FY 2017-18 (AY 2018-19)

The tax rate for companies with an annual turnover of up to Rs 50 crore in F.Y. 2015-16 has been brought down to 25% from 30%. Other rates remain the same as were in the previous year.

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

PART I: Income Tax Slab for Individual Tax Payers and HUF (Less than 60 Years Old) (Both Men and Women)

Income Slabs Tax Rate
Income up to Rs 2,50,000* No tax
Income from Rs 2,50,000 – Rs 5,00,000 10%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) (Both Men and Women)

Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

Income Slabs 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 exceeds Rs.50 lakh upto Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

PART III: Income Tax Slab for Senior Citizens (80 Years Old Or More) (Both Men and Women)

Income Slabs 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: 15% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

Note: Tax rebate upto Rs 5,000 for a taxable income up to Rs 5 lakh.

Income Tax Slabs for Domestic Companies for FY 2016-17 (AY 2017-18)

In the budget Income tax slab rate reduced to 29% (plus applicable surcharge and education cess) for domestic companies whose total turnover/gross receipts in F.Y. 2014-15 does not exceed Rs 5 crores.

In case the person formed a new company then income tax rate of 29% for domestic companies will apply, if set-up and registered after 1 March 2016.

In other cases, the tax rates remain unchanged at 30% (plus applicable surcharge and education cess).

Effective tax rates are as under:

Particulars Turnover/Gross receipts less than Rs 5 crores Turnover/Gross receipts more than Rs 5 crore
Taxable income less than Rs 1 crore Taxable income more than Rs 1 crore Taxable income less than Rs 1 crore Taxable income more than Rs 1 crore but less than Rs 10 crores Taxable income more than Rs 10 crores
Corporate tax 29% 29% 30% 30% 30%
Surcharge 0 7% 0 7% 12%
Corporate tax + surcharge 29% 31% 30% 32.10% 33.60%
Education cess 3% 3% 3% 3% 3%
Effective tax rate 29.87% 31.96% 30.90% 33.06% 34.61%

Special Rates

Although total income is taxable at income slabs rates mentioned above, some incomes are taxed at special rates.

Nature Tax Rate
Short-term capital gains from assets (Other than shares & mutual funds) At income tax slab rates listed above
Long-term capital gains from assets (Other than shares & mutual funds) 20%
Short-term capital gains on shares and equity mutual funds 15%
Long-term capital gains on shares and equity mutual funds NIL
Short-term capital gains on debt mutual funds At income tax slab rates listed above
Long-term capital gains on debt mutual funds At 20% with indexation

Legal entities registered as Association Of Persons (AOP), Bodies of Individuals (BOI) and Artificial Judicial Persons

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

Plus:

  • 12% surcharge is added if income is > than Rs 1,00,00,000.
  • 2% education cess: charged on the amount of income tax + surcharge being paid.
  • 1% education cess (for secondary and higher): charged on the amount of income tax + surcharge being paid.

Less: Rebate under section 87A: Association of Persons(AOP) whose total income is less than Rs.5,00,000, the total rebate amount of Rs 2000 or 100% of the income tax (whichever is lesser).

Foreign Companies

Source of income Tax Rate
The income received is in the form of royalties by the Indian government in relation to the agreements made with an Indian concern. 50%
The income received is in the form of fees for technical services rendered for the agreements made with Indian concern. 50%
If there is any other income. 40%

Plus:

  • 12% surcharge is added if income is > than Rs 1,00,00,000.
  • 2% education cess: charged on the amount of income tax + surcharge being paid.
  • 1% education cess (for secondary and higher): charged on the amount of income tax + surcharge being paid.

Co-operative Societies

Income slabs Tax Rate
Up-to Rs 10,000 10%
Rs 10,000 to Rs 20,000 20%
Over 20,000 30%

Plus:

  • 12% surcharge is added if income is > than Rs 1,00,00,000.
  • 2% education cess: charged on the amount of income tax + surcharge being paid.
  • 1% education cess (for secondary and higher): charged on the amount of income tax + surcharge being paid.

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