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

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

Income Tax slab rates help you decide whether your income is taxable or not. There are some changes introduced in the income tax slab rates for the financial Year 2017-18 (assessment year AY 2018-19).

Based on the annual income earned by an individual, the following table shows different income tax rates applicable in India. The tax slabs have been arranged by the category and profile of the tax payers. 

Income Tax Brackets/Slab for FY 2018-19

Income tax is a tax imposed by the government on the income earned by individuals and businesses. One must file an income tax return to justify his/her income. In this regard, to avail tax advantages to its fullest, it is crucial to understand the existing income tax slab for the fiscal year 2018-19.

Decoding Income Tax Slab

As the source of income is diverse is India, it is not quite possible to charge a single tax rate for all. That is why the government of India has set different tax slabs applicable to different groups of income earners. Each group is liable to pay tax as per the rates imposed. The income tax slab also varies from group to group. Every year, tax slab is revised as per the rules of IT Act, 1961. However, the budget propositions directly impact on income tax slab for each year.

Since the 2018 budget had announced no changes in the income tax slab, the tax slabs remain the same as in the year 2017. Hence, the salaried persons and businessmen didn’t witness any change in the slab. Yet, a 4% increase in Education and Health Cess was introduced. Due to this, the existing income tax slab categories see a nominal increase in the income tax rate. Let’s consider the below table to understand the changes applied after 2018 budget.

Individuals below the age of 60 years:

Net Income

Income Tax Rate & Cess

Net Taxable Income

Tax Liability After 2018 Budget

 Increased Tax (Rs.)

Up to INR 2.5 Lakh

NIL

2,50,000

-

 

INR 2.5 Lakh-5 Lakh

5% + 4% CESS

5,00,000

INR 13,000

125

INR 5 Lakh-10 Lakh

20% + 4% CESS

10,00,000

INR 1,17,000

1,125

INR 10 Lakh and above

30% + 4% CESS

15,00,000

INR 2,73,000

2,625

 

Individuals of the age of 60 years but less than 80 years

Net Income

Income Tax Rate

Net Taxable Income

Tax Liability After 2018 Budget

 Increased Tax (Rs.)

Up to INR 3 Lakh

NIL

2,50,000

-

 

INR 3 Lakh-5 Lakh

5% + 4% CESS

5,00,000

INR 10,400

100

INR 5 Lakh-10 Lakh

20% + 4% CESS

10,00,000

INR 1,14,400

1,100

INR 10 Lakh and above

30% + 4% CESS

15,00,000

INR 2,70,400

2,600

 

Individuals of the age of 80 years and above

Net Income

Income Tax Rate

Net Taxable Income

Tax Liability After 2018 Budget

 Increased Tax (Rs.)

Up to INR 5 Lakh

NIL

5,00,000

-

 

INR 5 Lakh-10 Lakh

10% + 4% CESS

10,00,000

INR 1,04,000

1000

INR 10 Lakh and above

30% + 4% CESS

15,00,000

INR 2,60,000

2,500

 

The increased tax is applicable from the assessment year 2019-20.

As per the current income tax brackets, the taxation applicable to persons below the age 60 years is as follows:

Income

Tax Applicable

Income up to Rs. 2.5 Lakh

NIL

Rs. 2.5 Lakh -5 Lakh

5%

Rs. 5 Lakh-10 Lakh

20%

Rs. 10 Lakh and above

30%

 

For Senior Citizen (age 60- less than 80)

Net Income

Income Tax Rate

Up to INR 3 Lakh

NIL

INR 3 Lakh-5 Lakh

5%

INR 5 Lakh-10 Lakh

20%

INR 10 Lakh and above

30%

 

For Super Seniors (Age above 80 years)

Net Income

Income Tax Rate

Up to INR 5 Lakh

NIL

INR 5 Lakh-10 Lakh

10%

INR 10 Lakh and above

30%

 

Income Tax Slab Rate for Hindu Undivided Families (HUF)

Net Income

Income Tax Rate

Up to INR 2.5 Lakh

NIL

INR 2.5 Lakh-5 Lakh

5%

INR 5 Lakh- 10 Lakh

20%

Above INR 10 Lakh

30%

Source: economictimes.com

Income Tax Slabs for Individual Tax Payer (Resident of India or NRI): 

Level of Income

Tax Rates

Up to Rs 2,50,000

No Tax

Rs 2,50,000 to Rs 5,00,000

5%

Rs 5,00,000 to Rs 10,00,000

20%

Over Rs 10,00,000

30%

 

Additions:

10% of the income tax amount is surcharged if the income is in between the range of Rs 50 lakhs to Rs 1 crore.

15% of the income tax amount is surcharged if the income is greater than Rs 1 crore.

In addition to the surcharge being paid, 3% extra cess plus surcharge is charged on the total income tax amount.

Rebates:

Under Section 87A of the Income Tax Act, salaried individuals are supposed to receive a tax rebate of up to Rs 2500, if they fall under the taxable income slab of up to Rs 3.5 lakhs. 

Income Tax Slabs for Hindu Undivided Families (HUF): 

Level of Income

Tax Rates

Up to Rs2,50,000

No tax

Rs.2,50,000 to Rs.5,00,000

5%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

 

Additions:

10% of the income tax amount is surcharged if the income is in between the range of Rs 50 lakhs to Rs 1 crore.

15% of the income tax amount is surcharged if the income is greater than Rs 1 crore.

In addition to the surcharge being paid, 3% extra cess plus surcharge is charged on the total income tax amount.

Rebates:

Under Section 87A of the Income Tax Act, salaried individuals are supposed to receive a tax rebate of up to Rs 2500, if they fall under the taxable income slab of up to Rs 3.5 lakhs. 

Income Tax Slabs for legal Entities Registered as Associations of Persons: 

Level of Income

Tax Rates

Up to Rs.2,50,000

No tax

Rs.2,50,000 to Rs.5,00,000

5%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

 

Additions:

10% of the income tax amount is surcharged if the income is in between the range of Rs 50 lakhs to Rs 1 crore.

15% of the income tax amount is surcharged if the income is greater than Rs 1 crore.

In addition to the surcharge being paid, 3% extra cess plus surcharge is charged on the total income tax amount.

Rebates:

Under Section 87A of the Income Tax Act, salaried individuals are supposed to receive a tax rebate of up to Rs 2500, if they fall under the taxable income slab of up to Rs 3.5 lakhs.

Income Tax Slabs for Legal Entities Registered as Bodies of Individuals:

Level of Income

Tax Rates

Up to Rs.2,50,000

No tax

Rs.2,50,000 to Rs.5,00,000

5%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

 

Additions:

10% of the income tax amount is surcharged if the income is in between the range of Rs 50 lakhs to Rs 1 crore.

15% of the income tax amount is surcharged if the income is greater than Rs 1 crore.

In addition to the surcharge being paid, 3% extra cess plus surcharge is charged on the total income tax amount.

Rebates:

Under Section 87A of the Income Tax Act, salaried individuals are supposed to receive a tax rebate of up to Rs 2500, if they fall under the taxable income slab of up to Rs 3.5 lakhs. 

Income Tax Slabs for Other Artificial Judicial Persons:

 Level of Income

Tax Rates

Up to Rs.2,50,000

No tax

Rs.2,50,000 to Rs.5,00,000

5%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

 

Additions:

10% of the income tax amount is surcharged if the income is in between the range of Rs 50 lakhs to Rs 1 crore.

15% of the income tax amount is surcharged if the income is greater than Rs 1 crore.

In addition to the surcharge being paid, 3% extra cess plus surcharge is charged on the total income tax amount.

Rebates:

Under Section 87A of the Income Tax Act, salaried individuals are supposed to receive a tax rebate of up to Rs 2500, if they fall under the taxable income slab of up to Rs 3.5 lakhs. 

Income Tax Slab For Resident Senior Citizens (Over the Age of 60 on the last day of the Previous Year): 

Level of Income

Tax Rate

Up to Rs.3,00,000

No tax

Rs.3,00,000 to Rs.5,00,000

5%

Rs.5,00,000 to Rs.10,00,000

20%

Over Rs.10,00,000

30%

 

Additions:

10% of the income tax amount is surcharged if the income is in between the range of Rs 50 lakhs to Rs 1 crore.

15% of the income tax amount is surcharged if the income is greater than Rs 1 crore.

In addition to the surcharge being paid, 3% extra cess plus surcharge is charged on the total income tax amount.

Rebates:

Under Section 87A of the Income Tax Act, salaried individuals are supposed to receive a tax rebate of up to Rs 2500, if they fall under the taxable income slab of up to Rs 3.5 lakhs. 

Income Tax Slab For Resident Super Senior Citizens (Over the age of 80 on the last day of the Previous Year): 

Level of Income

Tax 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%

 

Additions:

15% of the income tax amount is surcharged if the income is greater than Rs 1 crore.

In addition to the surcharge being paid, 3% extra cess plus surcharge is charged on the total income tax amount. 

For Partnership Firms:

The income tax rate for Limited Liability Partnerships (LLPS) and Partnership Firms will be @ 30%.

Additions:

12% of the income tax amount is surcharged if the income is greater than Rs 1,00,00,000 (Subject to marginal relief).

In addition with the surcharged being paid, 2% extra education cess is charges on the income tax amount.

In addition with the surcharge being paid, 1% extra secondary and higher education cess is charged on the income tax amount.  

For Local Authorities:

The income tax rate for Local Authorities will be @ 30%.

Additions:

12% of the income tax amount is surcharged if the income is greater than Rs1,00,00,000 (Subject to marginal relief).

In addition with the surcharged being paid, 2% extra education cess is charges on the income tax amount.

In addition with the surcharge being paid, 1% extra secondary and higher education cess is charged on the income tax amount. 

For Domestic Companies:

The income tax rate for Domestic Companies will be @ 30%.

Addition:

7% of the income tax amount is surcharged if the income of the salaried individual is greater than Rs1,00,00,000. 12% of the income tax amount is surcharged if the income is greater than Rs10, 00, 00,000 (Subject to marginal relief).

In addition with the surcharged being paid, 2% extra education cess is charges on the income tax amount.

In addition with the surcharge being paid, 1% extra secondary and higher education cess is charged on the income tax amount. 


 Income Tax Rates for Foreign Companies: 

Nature of Income

Tax Rate

As per the agreement made with an Indian concern, in case the income received by foreign firms is in the form of royalties paid by the Indian government rendered according to agreements(After March 31st ,1961 and before April 1st 1076)

50%

In case the received income is in the form of payment for technical service rendered according to the agreement made with an Indian concern(After February 29th 1964, before April 1st 1976)

50%

Any other income

40%

 

Additions:

2% of income tax amount is surcharged if the income is higher than Rs 1, 00, 00,000. 5% of the income tax amount is surcharged if the income is greater than Rs 10, 00, 00,000 (Subject to marginal relief).

In addition with the surcharged being paid, 2% extra education cess is charged on the income tax amount.

In addition with the surcharge being paid, 1% extra secondary and higher education cess is charged on the income tax amount.  

Income Tax Rates for Co-operative Societies: 

Level of Income

Tax Rate

Up to Rs.10,000

10%

Rs.10,000 to Rs.20,000

20%

Over Rs.20,000

30%

 

Additions:

12% of the income tax amount is surcharged if the income is greater than Rs1,00,00,000 (Subject to marginal relief).

In addition with the surcharged being paid, 2% extra education cess is charges on the income tax amount.

In addition with the surcharge being paid, 1% extra secondary and higher education cess is charged on the income tax amount.

Budget 2018 Highlights on Income Tax

For Salaried Professionals

  • No change in basic income tax brackets
  • A standard deduction of INR 40,000 is introduced by replacing the miscellaneous and transport allowance
  • Tax on education cess is increased by 4% tax and renamed as Health and Education Cess
  • 10% tax on long-term capital gain exceeding Rs 1 Lakh
  • Short-term capital gains to continue to be taxed at 15%

For Senior Citizens

  • Zero TDS on interest earned from FDs up to Rs 50,000
  • Tax exemption on interest from FD, Post Office up to RS 50,000 as per the Section 80TTB
  • Premium paid for senior citizen medical insurance is exempted up to Rs. 50,000
  • As per Section 80DDB, tax exemption for certain critical illnesses up to Rs. 60,000 in case of senior citizens, up to Rs. 80,000 in case of super senior citizens and Rs. 1 Lakh in case of all senior citizen

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