Income Tax Slab Rates

Posted in: Taxes | on: November 12, 2017

Income tax slab rates for the current and previous two financial years. Detailed tax exemption, tax calculation, tax rates for individuals, HUFs, foreign and domestic companies, legal entities and rebate, cess and surcharge information.
Income Tax Slab Rates

Income tax Slabs are given in accordance with the budget of the financial year. And assessing the tax based on the new slab will be done in the next year that in the assessment year. Let's see the slab rates of the current and previous years.

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

Here we shall see the slab rates of the fiscal year 2017-2018 which will be assessed at the assessment year 2018-2019.

Income Tax Slab for Individual Tax Payers and HUF (Less than 60 Years Old)

The new slab provides no tax for the persons with annual income up to Rs. 2.5 lakhs. It remains same as last year and this is the limit of tax exemption. Person's income ranges between Rs.2.5 lakh and Rs. 5 lakh need to pay 5% of their income. Persons with income between Rs. 5 lakh and Rs.10 lakh have to pay 20% of their income and persons with income above Rs. 10 lakh have to pay 30% as tax. Comparing with previous year, there is a tax decrease of 5% from 10% for the income range between Rs. 2.5 lakh and 5 lakh and no other changes have made.

Additions:

Those who have annual income above Rs. 50 lakh and below Rs. 1 crore have to pay 10% as surcharge and persons with income exceeding Rs. 1 crore have to pay 15% surcharge. Cess is calculated by adding 3% of the individual's income with the surcharge.

Income Rate Tax Rate
Individual income up to Rs. 250000 N/A
Individual income from Rs. 250000 to Rs. 500000 5%
Individual income from Rs. 250000 to Rs. 500000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income from Rs. 5000000 to Rs. 1 crore 10 %
Individual income above Rs. 10000000 15%

Income Tax Slab for Senior Citizens (60 Years Old or More but Less than 80 Years Old)

The senior citizen with income up to Rs. 3 lakh come under tax exempted category and this is the tax exemption limit. Person's income ranges between Rs. 3 lakh and Rs. 5 lakh have to pay 5% of as tax. Person with income between Rs. 5 lakh and Rs. 10 lakh have to pay 20% of their income and persons earn income above Rs. 10 lakh have to pay 30% as tax.

Additions:

The surcharge of 10% for the person's income level between Rs. 50 lakh and Rs. 1 crore and 15% surcharge for the income above Rs. 1 crore. Cess calculated as 3% of the person income along with the surcharge.

Income Rate Tax Rate
Individual income up to Rs. 300000 N/A
Individual income from Rs. 300000 to Rs. 500000 5%
Individual income from Rs. 500000 to Rs. 1000000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income from Rs. 5000000 to Rs. 1 crore 10 %
Individual income above Rs. 10000000 15%

Income Tax Slab for Senior Citizens (80 Years Old or More)

The super senior citizens who are aged above 80 years with annual income up to Rs. 2.5 lakh and up to Rs. 5 lakh are under tax exempted category and Rs. 5 lakh is the tax exemption limit. Person with income between Rs. 5 lakh and Rs. 10 lakh has 20% income tax and person with income above Rs. 10 lakh has 30% tax.

Additions:

Surcharge of 15% will be levied if the income exceeded Rs. 1 crore. Cess is 3% of the income along with the surcharge.

Income Rate Tax Rate
Individual income up to Rs. 250000 N/A
Individual income up to Rs. 500000 N/A
Individual income from Rs. 500000 to Rs. 1000000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income from Rs. 5000000 to Rs. 1 crore 10 %
Individual income above Rs. 10000000 15%

Income Tax Slab for Domestic Companies for FY 2017-18

Companies with the annual turnover up to Rs. 5 crore with taxable income less than Rs. 1 crore have to pay corporate tax 29%, educational cess 3%, surcharge 0% and effective tax rate is 29.87%. Same company with taxable income above Rs. 1 crore have to pay corporate tax 29%, surcharge 7%, educational cess 3% and effective tax rate 31.96%. The companies with annual turnover above Rs. 5 crore but with taxable income below Rs. 1 crore have to pay corporate tax 25%, surcharge 0%, educational cess 3% and if the taxable income is above Rs. 1 crore but less than Rs. 10 crore, the company have to pay corporate tax 25%, surcharge 7% and educational cess 3% and for the companies with taxable income above Rs. 10 crore, the corporate tax is 25%, surcharge 12% and cess 3%.

Income Range Corporate Tax Surcharge Cess
Annual Turnover < 5 crore & Taxable Income <1 crore 29% 0% 3%
Annual Income < 5 crore & Taxable Income > 1 crore 29% 7% 3%
Annual Income > 5 crore & Taxable Income < 1 crore 25% 0% 3%
Annual Income > 5 crore & Taxable Income between 1 crore and 10 crore 25% 7% 3%
Annual Income > 5 crore & Taxable Income > 1 crore 25% 12% 3%

Rebate:

For the taxable income is up to Rs. 3.5 lakh, there will be Rs. 2500 as rebate which is suitable for all categories in the FY 2017-2018.

Income Tax Exemption for FY 2017-18

Income tax exemption limit is Rs. 2.5 lakh applied for individual tax payers and HUF aged below 60 years, Rs. 3 lakh applied for senior citizens aged above 60 and below 80 years and Rs. 5 lakh for super senior citizens aged above 80 years.

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

Let's see the income tax rate slab for the fiscal year 2016-2017.

Income Tax Slab for Individual Tax Payers and HUF (Less than 60 Years Old)

Individuals with income up to the limit of Rs. 2.5 lakh come under tax exemption category and this amount is the limit for tax exemption. Persons who earn between Rs. 2.5 lakh and Rs. 5 lakh avails a tax of 10% and 20% for the income level between Rs. 5 lakh and Rs. 10 lakh. The 30% tax levied for those who earn above Rs. 10 lakh.

Additions:

There exists surcharge of 15% if the income exceeds Rs. 1 crore.

Rebate:

Rebate of Rs. 2000 or 100% is applied if the person's income is below Rs. 5 lakh.

Income Rate Tax Rate
Individual income up to Rs. 250000 N/A
Individual income from Rs. 250000 to Rs. 500000 5%
Individual income from Rs. 250000 to Rs. 500000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income above Rs. 10000000 15%

Income Tax Slab for Senior Citizens (60 Years Old or More But Less than 80 Years Old)

Persons with annual income up to Rs. 3 lakh have to pay no tax and it is the limit of tax exemption. Income ranging from Rs. 3 lakh to Rs. 5 lakh has to pay 10%, 20% of income tax for those come between the limit of Rs. 5 lakh and Rs. 10 lakh and 30% of tax charged for those with income above Rs. 10 lakh.

Additions:

Surcharge of 15% is applied if income level exceeds Rs. 1 crore.

Rebate:

Rebate of Rs. 2000 or 100% is applied if person's income is below Rs. 5 lakh.

Income Rate Tax Rate
Individual income up to Rs. 300000 N/A
Individual income from Rs. 300000 to Rs. 500000 5%
Individual income from Rs. 500000 to Rs. 1000000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income above Rs. 10000000 15%

Income Tax Slab for Senior Citizens (80 Years Old or More)

Super senior citizens with income up to the limit of Rs. 2.5 lakh and Rs. 5 lakh have to pay no tax that they came under tax exemption category. Tax exemption limit is Rs. 5 lakh for the super senior citizens. There exists 20% tax for the income ranges between Rs. 5 lakh and Rs. 10 lakh and 30% for income exceeds Rs. 10 lakh.

Additions:

Surcharge of 15% applied for those who have income exceeding Rs. 1 crore.

Rebate:

Rebate of Rs. 2000 or 100% is applied if person's income is below Rs. 5 lakh.

Income Rate Tax Rate
Individual income up to Rs. 250000 N/A
Individual income up to Rs. 500000 N/A
Individual income from Rs. 500000 to Rs. 1000000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income above Rs. 10000000 15%

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

Domestic companies with the annual output up to Rs. 5 crore with taxable income less than Rs. 1 crore needs to pay the corporate tax 29%, educational cess 3%, surcharge 0% and the effective tax rate is 29.87%. Same the company with taxable income above Rs. 1 crore needs to pay corporate tax 29%, surcharge 7%, educational cess 3% and the effective tax rate 31.96%. And the domestic companies with annual turnover above Rs. 5 crore but with taxable income below Rs. 1 crore need to pay corporate tax 30%, surcharge 0%, educational cess 3% and effective tax rate 30.90% and for the same if the taxable income is above Rs. 1 crore but less than Rs. 10 crore, the corporate tax is 30%, surcharge 7%, educational cess 3% and effective tax rate 33.06% and the companies with taxable income above Rs. 10 crore, the corporate tax is 30%, surcharge 12%, cess 3% and the effective tax rate is 34.61%.

Income Range Corporate Tax Surcharge Cess
Annual Turnover < 5 crore & Taxable Income <1 crore   29% 0% 3%
Annual Income < 5 crore & Taxable Income > 1 crore   29% 7% 3%
Annual Income > 5 crore & Taxable Income < 1 crore   30% 0% 3%
Annual Income > 5 crore & Taxable Income between 1 crore and 10 crore   30% 7% 3%
Annual Income > 5 crore& Taxable Income > 1 crore 30% 12% 3%

Income Tax Slab for legal Entities Registered as Associations of Persons

If the person income is up to Rs. 2.5 lakh, there is no tax. If it is between Rs. 2.5 lakh and Rs. 5 lakh, 10% tax, between Rs. 5 lakh and Rs. 10 lakh, 20% tax and if it is above Rs. 10 lakh, 30% tax is applied.

Additions:

Surcharge of 12% is applied if income exceeds Rs. 1 crore. The cess is 2% educational cess applied along with the surcharge. For secondary and higher studies, the cess is 1%.

Rebate:

Rebate of Rs. 2000 or 100% is applied if the person's income is below Rs. 5 lakh.

Income Tax Slab for Legal Entities Registered as Bodies of Individuals

The tax slab for this category is same as the tax slab for legal entities registered as association of persons.

Income Tax Slab for Partnership Firms and Local Authorities

For the partnership firms, Local authorities and the LLPs, the tax rate is 30% and the surcharge is 12% if income exceeds Rs. 1 crore and educational cess is 2% and higher studies cess is 1%.

Income Tax Slab for Foreign Companies

Income tax rate of 50% is applied for the foreign companies whose income is in the form of royalties given by Indian government according to the bond with the respective Indian company. Income received by foreign company in the form of fees for any technical assistance avails 50% taxation. For all other services, 20% tax is applied.

Additions:

Surcharge of 2% is applied if income exceeds Rs. 1 crore and it is 5% if above Rs. 10 crore. Educational cess is 2% and higher studies cess is 1%.

Rebate:

Rebate of Rs. 2000 or 100% is applied if the person's income is below Rs. 5 lakh.

Income Tax Slab for Other Artificial Judicial Persons

If the person income is up to Rs. 2.5 lakh, there is no tax. If it is between Rs. 2.5 lakh and Rs. 5 lakh, 10% tax, between Rs. 5 lakh and Rs. 10 lakh, 20% tax and if it is above Rs. 10 lakh, 30% tax is applied.

Additions:

Surcharge of 12% is applied if income exceeds Rs. 1 crore. The educational cess is 2% along with the surcharge. For secondary and higher studies, the cess is 1%.

Rebate:

Rebate of Rs. 2000 or 100% is applied if the person's income is below Rs. 5 lakh.

Income tax exemption for AY 2017-18

Income tax exemption limit is Rs. 2.5 lakh applied for the individual tax payers and HUF aged below 60 years, Rs. 3 lakh applied for senior citizens aged above 60 and below 80 years and Rs. 5 lakh for super senior citizens aged above 80 years.

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

Here let's see the tax slabs for the year 2015 - 2016.

Income Tax Slab for Individual Taxpayers and HUF (Less than 60 Years Old)

Individuals with annual income up to Rs. 2.5 lakh do not have tax percent that they are under tax exemption category. Rs. 2.5 lakh is the exemption limit of the FY 2015-2016. And about 10%, 20%, 30% tax rates are applied for the income levels ranging Rs. 2.5 lakh - Rs. 5 lakh, Rs. 5 lakh - Rs. 10 lakh and above Rs. 10 lakh respectively.

Additions:

Surcharge rate is 12% if the income exceeds Rs. 1 crore.

Income Rate Tax Rate
Individual income up to Rs. 250000 N/A
Individual income from Rs. 250000 to Rs. 500000 5%
Individual income from Rs. 250000 to Rs. 500000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income above Rs. 10000000 12%

Income Tax Slab for Senior Citizens (60 Years Old or More But Less than 80 Years Old)

There is no tax for the persons with income up to Rs. 3 lakh. Tax exemption limit for this category is Rs. 3 lakh. For the income range of Rs. 3 lakh to Rs. 5 lakh, Rs. 5 lakh to Rs. 10 lakh and above Rs. 10 lakh avails the income tax of 10%, 20% and 30% respectively. The 12% of income tax if the income goes above Rs. 1 crore levied as surcharge.

Income Rate Tax Rate
Individual income up to Rs. 300000 N/A
Individual income from Rs. 300000 to Rs. 500000 5%
Individual income from Rs. 500000 to Rs. 1000000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income above Rs. 10000000 12%

The tax rates on this example is based FY 2017-18

Income Tax Slab for Senior Citizens (80 Years Old or More)

There is no tax for the persons with income up to Rs. 2.5 lakh and up to Rs. 5 lakh. Tax exemption limit for this category is Rs. 5 lakh. For the income range of Rs. 5 lakh to Rs. 10 lakh and above Rs. 10 lakh avails the income tax of 20% and 30% respectively. The 12% of income tax if income goes above Rs. 1 crore levied as surcharge.

Income Rate Tax Rate
Individual income up to Rs. 250000 N/A
Individual income up to Rs. 500000 N/A
Individual income from Rs. 500000 to Rs. 1000000 20%
Individual income above Rs. 1000000 30%
Surcharge Rate  
Individual income above Rs. 10000000 12%

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

The domestic companies are levied 30% as income tax and the surcharge is applied for about 5% if the total income is between Rs. 1 crore and Rs. 10 crore and surcharge about 10% of the income if it exceeds Rs. 10 crore.

Income tax exemption for FY 2015-16

Income tax exemption limit is Rs. 2.5 lakh applied for the individual tax payers and HUF aged below 60 years, Rs. 3 lakh applied for senior citizens aged above 60 and below 80 years and Rs. 5 lakh for super senior citizens aged above 80 years.

Some Incomes are Taxed at Special Rates

There exist some special tax rates for certain incomes like assets, equity funds, debt mutual funds. Let's see the details. The above said tax slabs are applicable for the short term profit which should be based on the assets except mutual funds and shares, for long term profit from those assests there is 20% of income tax applicable. For short term gains of the equity mutual funds and shares, 15% tax is applied and for the long term gains of the same, no tax is applied. In case of short term gains of debt mutual funds, above said tax slab is applied and long term gain of the same avails 20% taxation

Income Tax Calculation from Income Tax Slabs

First we have to calculate the gross income of a person by adding income of salary or our business and subtracting the deductions The examples of tax deductions are provident funds, employment Provident funds, life insurance premiums, medical insurance premiums and etc. consider the individual income is 7 lakhs and have an additional income of Rs. 50000 from rent and other types. He is paying Rs. 10000 for premiums and other deductible expense. So his gross income is Rs. 740000.

Income Rate Tax Rate  
Individual income up to Rs. 250000 N/A -
Individual income from Rs. 250000 to Rs. 500000 5% 5% of (500000-250000) = 12500
Individual income from Rs. 250000 to Rs. 500000 20% 20% 0f(740000-500000) = 48000
Individual income above Rs. 1000000 30% -
Cess 3% 3% of (12500+48000)= 1815
Total payable tax   12500+48000+1815 = 62315

From the slab we conclude Rs. 62315 is the tax amount to pay.


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