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Income Tax Slabs for Financial Year 2017-18
Income Tax is that percentage of income paid to the government by the taxpayers for the betterment of the public at large. This income is categorised into different groups on the basis of the amount of income. Each group is known as Tax slab. Tax is charged at the different rates on the range of income falling under different tax slabs. The income tax Act 1961 is the law that governs the provisions of our income tax in India. The income tax slab rates are usually revised year during the budget. Below are the Income Tax Slabs for Financial Year 2017-18.
Income Tax Slabs for Financial Year 2017-18 (AY2018-19)
Individuals and HUF – Income Tax slabs for individual tax payers & HUF (Less than 60 years old)
| Income Slab | Tax Rate |
| Income up to RS 2,50,000 | No Tax |
| Income up to RS 2,50,000 to 5,00,000 | 5% |
| Income up to RS 5,00,000 to 10,00,000 | 20% |
| Income more than 10,00,000 | 30% |
Senior Citizens – Income Tax Slab for Senior Citizens (More than 60 years old and Less than 80 years old)
| Income Slab | Tax Rate |
| Income up to RS 3,00,000 | No Tax |
| Income up to RS 3,00,000 to 5,00,000 | 5% |
| Income up to RS 5,00,000 to 10,00,000 | 20% |
| Income more than RS 10,00,000 | 30% |
Super Senior Citizens – Income Tax Slab for Senior Citizens (80 years old and more)
| Income Slab | Tax Rate |
| Income up to RS 5,00,000 | No Tax |
| Income up to RS 5,00,000 to 10,00,000 | 20% |
| Income more than 10,00.000 | 30% |
Income Tax Slab Rate Post Budget 2017
The Tax is calculated according to the income slabs announced by the government every year in the budget. The Finance Minister has announced the changes in the Tax Slab structure in the union budget for 2017.
Businesses – Income Tax Slab Rates for Business
The following are the Income Tax Slab Rates shall be applicable for the assessment year 2017-18. Education Cess @2% and SHEC @1% Shall be levied on the Income Tax so computed.
Co-operative Society – Income Tax Slab Rates for Co-operative Society
| Income Slab | Tax Rate |
| Total Income does not exceed RS 10,000 | 10% |
| Total Income exceed RS10,000 but does not exceed RS 20,000 | 20% |
| Total Income exceed RS 20,000 | 30% |
Firms and local Authority – Income Tax Slab Rates for Firms and local Authority
Income Tax Slab Rates won’t apply in this case and Tax 30%flat shall be computed on the Total Income.
Surcharge is also levied in case of Firms and Local Authorities as per the below mentioned scheduled.
| Level of Income | Surcharge |
| Less than RS 1crore | No Surcharge |
| More than RS 1crore | 12% |
Surcharge @12% would also be levied on Tax in case the Total income exceeds RS 1crore during the Financial Year.
Domestic Companies – Income Tax Slab Rates for Domestic Companies
Income Tax on Domestics companies is levied @30% of the Total Income. However, Union Budget 2017 has reduced the Income Tax from 30% to 25% for domestic companies with a Turnover of less than RS 50Crore. These reduced income tax rates are applicable from Financial Year 2017-18 onwards.
For Domestic companies with turnover of more than RS 50 Crore, Income Tax would continue to be levied @30%.
Surcharge is also levied in case of Domestic Companies as per the below mentioned scheduled.
|
Level of Income |
Surcharge |
| Less than RS 1Crore | No Surcharge |
| More than RS 1Crore but less than RS 10Crore | 7% |
| More than RS 10Crore | 12% |
Education Cess & SHEC
Education Cess @2% & Secondary and Higher Education Cess @1% would also be levied on Total Tax Computed. This Cess is also applicable for all categories of Taxpayers.
Partnership Firm – Tax rate for Partnership Firm
A Partnership Firm is taxable at 30%.
Surcharge: 12% of Tax where total income exceeds RS 1Crore.
Education Cess: 3% of Tax plus surcharge.
Foreign companies – Tax Rates for Foreign companies:
A Foreign company is taxable at 40%.
Surcharge: 2% of tax where total income exceeds RS 1crore,5% where total income exceeds RS 10 crore.
Education Cess: 3% of tax plus surcharge.