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Tax Rate For FY 2017-18 and 2016-17

Income Tax Slabs for Financial Year 2017-2018 and 2016-2017

As per IT act 1961 in India an individual is taxed according to the pre-set Income Tax rate, these rates are prepared according to earning levels every Financial Year.

In India, individuals, HUF’s, AOP (Associate of Persons) and BOI (Body of Individuals) have tax liability as per the tax rate decided by the government. The businesses and companies also have tax liability as per a fixed rate, but exceptions are there for certain income level.

New Income Tax Slab Rate for Financial Year 2017-18 (Assessment Year 2018-19)
  • According to the last union budget, the Finance Minister announced a new income tax lab for the financial year 2017-18, that is the assessment year 2018-19. Every year these slabs are revised for salaried individuals as well as business entities.
  • One of several ITR Forms will be provided for the individuals and HUFs with an annual income of less than Rs. 5,00,000.
  • The income group with annual earning of less than Rs. 3,00,000 will be subject to zero tax liability because of the operation of rebate under Section 87A of the Income Tax Act, 1961.
  • Domestic Companies: For Assessment Year 2018-19 there is a reduction in IT rate from 30% to 25%, for the businesses with an annual turn over of less than Rs. 50 Crores in the previous year 2015-16. Companies with gross revenue below Rs. 5 crore need pay only the rate of 29%.
You can find the Tax slab for Financial Year 2017-18 (AY 2018-19) below

IT slab for salaried individuals & HUFs (under the age of 60 years)

Income Tax Slab Tax Rate
Up to Rs. 2,50,000 No Tax
From Rs. 2,50,000 – Rs. 5,00,000 5%
From Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Surcharge:

  • 10% of income tax will be applicable on the taxpayers with income between Rs. 50 lakhs to 1 Cr.
  • 15% of income tax will be applicable on the taxpayers with income that exceeds Rs. 1 Cr.
A Cess of 3% on the total of income tax + surcharge will be also applicable to tax payment.

Tax slab for salaried individuals & HUFs (from the age of 60 years - 80 years)

Tax Slab Rate
Up to Rs. 3,00,000* No Tax
From Rs. 3,00,000 – Rs. 5,00,000 5%
From Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Surcharge:

  • 10% of income tax will be applicable on the taxpayers with income between Rs. 50 lakhs to Rs. 1 Cr.
  • 15% of IT will be applicable on the taxpayers, if their earning exceeds Rs. 1 Cr.
A Cess of 3% on the total of IT + surcharge will be also applicable to tax payment.
* In the case of individuals belonging to the group of the age of 60 years-80 years, income up to Rs. 3,00,000 is non-taxable.

Tax slab for salaried individuals & HUFs (Above 80 years of age)

Tax Slab Tax Rate
Up to Rs. 5,00,000* No Tax
From Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Surcharge:

  • 10% of income tax will be applicable on the taxpayers with income between INR 50 lakhs to 1 Cr.
  • 15% of income tax will be applicable on the taxpayers with income above INR 1 Cr.
A Cess of 3% on the total of income tax + surcharge will be also applicable to tax payment.
* In the case of individuals of the age group above 80 years, income up to INR 5,00,000 non-taxable.

IT Rates for FY 2016-17 (AY 2017-18)

The tax slabs defined for Financial Year 2016-17 are also applicable for the FY 2015-16 (Assessment Year 2016-17) and FY 2014-15 (Assessment Year 2015-16).

IT rates for Individual Taxpayers Under the Age of 60 years

Tax Slab Rate
Up to Rs. 2,50,000 No Tax
From Rs. 2,50,000 to Rs. 5,00,000 10%
From Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with income above Rs. 1 Cr. This is subjected to marginal relief.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For Resident Senior Citizens (from Age of 60- 80 years as on the last day of the Previous Year)

Tax Slab Tax Rate
Up to Rs. 3,00,000 No Tax
From Rs. 3,00,000 to Rs. 5,00,000 10%
From Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with income above Rs. 1 Cr. This is subjected to marginal relief.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For Resident Super Senior Citizens (Above the age of 80 as on the last day of the Previous Year)

IT Slab Rate
Up to Rs. 5,00,000 No Tax
From Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with income above Rs. 1 Cr. This is subjected to marginal relief.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For this assessment year, section 87A rebates were offered 100% of the income tax or Rs. 5,000 whichever is less. This rate has changed for the Assessment Year 2018-19.

Tax Slab for Hindu Undivided Families (HUFs)

Tax Slab Tax Rate
Up to INR 2,50,000 No Tax
From INR 2,50,000 to INR 5,00,000 10%
From INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with income above INR 1 Cr. This is subjected to marginal relief.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For this assessment year, section 87A rebates were offered 100% of the income tax or Rs. 5,000 whichever is less. This rate has changed for the Assessment Year 2018-19.

IT Rates for legal Entities Registered as Associations of Persons

Slab Rate
Up to INR 2,50,000 No Tax
From INR 2,50,000 to INR 5,00,000 10%
From INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with income above INR 1 Cr. This is subjected to marginal relief.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For this assessment year, section 87A rebates were offered 100% of the income tax or Rs. 5,000 whichever is less. This rate has changed for the Assessment Year 2018-19.

Tax Slab for Legal Entities Registered as Bodies of Individuals

Slab Rate
Up to Rs. 2,50,000 No Tax
From Rs. 2,50,000 to Rs. 5,00,000 10%
From Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with income above Rs. 1 Cr. This is subjected to marginal relief.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For this assessment year, section 87A rebates were offered 100% of the income tax or Rs. 5,000 whichever is less. This rate has changed for the Assessment Year 2018-19.

Tax Rate for Other Artificial Judicial Persons

Tax Slab Tax Rate
Up to INR 2,50,000 No Tax
From INR 2,50,000 to INR 5,00,000 10%
From INR 5,00,000 to INR 10,00,000 20%
Above INR 10,00,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with income above INR 1 Cr. This is subjected to certain amount of tax saving.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For this assessment year, section 87A rebates were offered 100% of the income tax or Rs. 5,000 whichever is less. This rate has changed for the Assessment Year 2018-19.


Tax Rate for Legal Entities Registered as Bodies of Individuals:
  • Partnership Firms and Limited Liability Partnerships (LLPs) are taxed at a flat rate of 30% over total income per Financial Year.
  • A surcharge of 12% of income tax will be applicable on the taxpayers with income above INR 1 Cr. This is subjected to marginal relief.
  • An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.


Income Tax Slab for Local Authorities:
  • Local Authorities are taxed at a flat rate of 30% over total income per Financial Year.
  • A surcharge of 12% of income tax will be applicable on the taxpayers, whose annual earning exceeds Rs. 1 Cr. This is subjected to marginal relief.
  • An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.
Income Tax Brackets for Domestic Companies:
  • Domestic companies are ordinarily taxed at a flat rate of 30% over total income per Financial Year.
  • A surcharge of 12% of income tax will be applicable on the taxpayers with income above INR 1 Cr. This is subjected to marginal relief.
  • An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

Tax Rate for Foreign Companies

Nature of Earning Tax Rate
If the Foreign company receives the earning in form of royalty paid by the Government of India in relation to agreements made with as Indian Concern (after March 31st, 1961, and before April 1st, 1976) 50%
If the Foreign company receives the income 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 Earning 40%
Surcharge:
  • 2% of IT will be applicable on the taxpayers with income less than Rs. 10 Cr. This is subjected to marginal relief.
  • 5% of income tax will be applicable on the taxpayers with income above Rs. 10 Cr. This is subjected to marginal relief.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of income tax + surcharge will be also applicable to tax payment.

For Co-operative Societies

Tax Slab Tax Rate
Up to INR 10,000 10%
From INR 10,000 to INR 20,000 20%
Above INR 20,000 30%
A surcharge of 12% of income tax will be applicable on the taxpayers with earning above INR 1 Cr. This is subjected to certain amount of tax saving.
An Education Cess of 2% and Secondary and Higher Education Cess of 1% on the total of IT + surcharge will be also applicable to tax payment.

In the News

  • All India ITR launched Income tax e-filing app

    Vishwa Times: Simplifying tax compliance and avoiding expenses on your accountant is the aim of All India ITR’s new e-filing app. Designed to maximise portability and meet last minute rushes, this app is packed with security features and practical applications. It is also backed up by a team of financial experts for any assistance when required.

    13th June 2017

    Vishwa Times