Income Tax Slabs

Income Tax Slab Rates for FY 2017-18(AY 2018-19). In India, there are clear constitutional provisions regarding taxation. The importance of taxation can be gauged from the recent Budget estimates for the financial year 2016-17, where 82.5% of the total expenditure is expected to be financed by tax revenues. The charge of tax under Section 4 is at the rate or rates in force for the time being. The income tax is charged at the rate or rates prescribed by the Finance Act for that assessment year. The rates mentioned in the Finance Act are the normal rates of tax.

For FY 2017-18, the slab rate for income tax up to Rs. 5 lakh has gone down from 10% to 5%. check Income Tax Slab for FY 2017-18 (AY 2018-19), FY 2016-17(AY 2017-18) & previous years from below...

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

Income-tax is to be charged at the rates fixed for the year by the annual Finance Act. Section 2 of the Finance Act, 2017

PART I: Income Tax Slab for Individual Tax Payers & HUF

(Less Than 60 Years Old) (Both Men & Women)

Income 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 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.
*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)

In view of proposed rationalisation of tax rates for individuals in the income slab of Rs. 2,50,000 to Rs. 5,00,000,it is proposed to amend section 87A so as to reduce the maximum amount of rebate available under this section from existing Rs. 5000 to Rs. 2500. It is also proposed to provide that this rebate shall be available to only resident individuals whose total income does not exceed Rs. 3,50,000.

The existing provisions of section 87A provide for a rebate up to Rs. 5000 from the income-tax payable to a resident individual if this total income does not exceed Rs. 5,00,000.

This amendment will take effect from 1st April, 2018 and will, accordingly, apply in relation to the assessment year 2018-19 and subsequent assessment years.

PART II: Income Tax Slab for Senior Citizens

(60 Years Old Or More but Less than 80 Years Old) (Both Men & Women)

Income 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 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.
*Income tax exemption limit for FY 2017-1 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens

(80 Years Old Or More) (Both Men & Women)

Income 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: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

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 has been brought down to 25% from 30%.

Besides the above change, other rates remain the same as were in the previous year. Please see the income tax slab for domestic companies for FY 2016-17.

Surcharge at the rate of

(i) ten per cent (10%). of such income-tax in case of a person having a total income exceeding fifty lakh rupees but not exceeding one crore rupees; and

(ii) fifteen per cent (15%). of such income-tax in case of a person having a total income exceeding one crore rupees.

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

The slab rates applicable for A.Y.2017-18 are as follows:

PART I: Income Tax Slab for Individual Tax Payers & HUF

(Less than 60 Years Old) (Both Men & Women)

Income Slab 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.
*Income tax exemption limit for FY 2016-17 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab for Senior Citizens

(60 Years Old Or More but Less than 80 Years Old)(Both Men & Women)

Income Slab Tax Rate
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – 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.
*Income tax exemption limit for FY 2016-17 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens

(80 Years Old Or More) (Both Men & Women)

Income 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: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2016-17 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Please also note that there is also a tax rebate of up to Rs 5,000 for a taxable income up to Rs 5 lakh.

How to Calculate Income Tax from Income Tax Slabs?

This example explains how to apply tax slabs to calculate income tax for FY 2016-17 (AY 2017-18).

Sanjay has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income, and interest income. Deductions under section 80 have also been reduced. Sanjay wants to know his tax dues for FY 2016-17 (AY 2017-18).

Income Slab Tax Rate Tax Calculation
Income up to Rs 2,50,000 No tax  
Income from Rs 2,50,000 – Rs 5,00,000 10% (Rs 5,00,000 – Rs 2,50,000) Rs 25,000
Income from Rs 5,00,000 – 10,00,000 20% (Rs 8,00,000 – Rs 5,00,000) Rs 60,000
Income more than Rs 10,00,000 30% nil
Tax   Rs 85,000
Cess 3% of Rs 85,000 Rs 2,550
Total tax in FY 2016-17 (AY 2017-18)   Rs 87,550

**Please note that Sanjay is an individual assesse having an income tax exemption of Rs 2,50,000. For other assesse as mentioned in table Part II & III, the Income tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000 respectively.

INCOME TAX SLAB FOR DOMESTIC COMPANIES FOR FY 2016-17(AY 2017-18)

Income tax rate reduced to 29% (plus applicable surcharge and education cess) for domestic companies whose total turnover/gross receipts does not exceed Rs 5 crores.

In case you formed a manufacturing company, income tax rate of 25% for domestic companies, if set-up and registered after 1 March 2016 and does not claim any tax incentives.

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

Income Tax Slab Rates for FY 2015-16 (AY 2016-17)

[These income tax slab rates are also applicable for FY 2016-17 (AY 2017-18) and FY 2014-15 (AY 2015-16)]

PART I: Income Tax Slab For Individual Taxpayers & HUF

(Less than 60 Years Old) (Both Men & Women)

Income Slab 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: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2015-16 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab For Senior Citizens

(60 Years Old Or More but Less Than 80 Years Old)(Both Men & Women)

Income Slab Tax Rate
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 10%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2015-16 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab For Senior Citizens

(80 Years Old Or More) (Both Men & Women)

Income 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: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2015-16 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Income Tax Slab for Domestic Companies for FY 2015-16 (AY 2016-17)

If you are registered as a company, the income tax slab rates do not apply to you. Domestic companies are taxed at 30% on the total income. A 5% surcharge is payable if income is more than Rs 1 crore but less than Rs 10 crore. If total income is more than Rs 10 crore, 10% surcharge is applicable.

Some Incomes are Taxed at Special Rates

Although total income is taxable at income tax slab 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