Changes in Income Tax Slab Rates after Budget 2017: FY 2017-18 (AY 2018-19)

By | April 5, 2017
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Union Budget 2017 has brought changes in the Income Tax slab. The finance minister has proposed to lower the tax rate from 10 % to 5% for individuals in the lowest income tax slab – Rs 2.5 lakh to Rs 5 lakh.  The tax rebate under Section 87A is proposed to be reduced to Rs 2500 from Rs 5000 for individuals with income up to Rs 3.5 lakh. Deductions limits under Section 80C, 80D for FY 2017-18 etc., remain unchanged.

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

 Income Tax Slabs and Rates for the Assessment Year 2018-19 for various categories of Indian Income Tax payers.

  • Individual Resident & HUF

There are three categories of individual’s tax payer based on their age

  1. Individual tax payer& HUF whose age below 60 years both Men & Women.
  2. Individual tax payer& HUF (Senior Citizens) whose age is 60 years and above but less than 80 years both Men Women.
  3. Super Senior Citizens whose age is 80 years and above both Men & Women.

 

Income Slab Individuals  (Aged below 60 Yrs ) Senior Citizens (Aged 60 yrs and above but below 80 yrs) Super Senior Citizens

(Aged 80 yrs and above)

Taxable Income up to Rs. 2,50,000* NIL NIL NIL
Taxable  Income from Rs. 2,50,001 to Rs. 300,000 5% NIL NIL
Taxable  Income from Rs. 3,00,001 – Rs. 5,00,000 5% 5 % NIL
Taxable Income from Rs. 5,00,000 – 10,00,000 20% 20% 20%
Taxable Income more than Rs. 10,00,000 30% 30% 30%

 

Surcharge:

10% of income tax, where total income is more than Rs. 50 lakhs but below Rs.1 crore.

15% of income tax, where the total income exceeds Rs.1 crore.

 

Education Cess: 3% on total of income tax + surcharge.

* Income up to Rs. 2, 50,000 is exempt from tax below 60 years of age.

* Income up to Rs. 3, 00,000 is exempt from tax if the age is more than 60 years but less than 80 years.

*Income up to Rs. 5, 00,000 is exempt from tax if the age is more than 80 years.

Secondary and Higher Education Cess: 1% on income tax including surcharge.

 

  • Any NRI / AOP / BOI / AJP

*Any Non Resident Individual, AOP – Association of Persons; BOI – Body of Individuals; AJP – Artificial Judicial Person

 

Income Slab Tax Rate
Taxable  Income up to Rs. 2,50,000* Nil
Taxable Income from Rs. 2,50,001 to Rs. 500,000 5% of amount by which the taxable income exceeds Rs. 2, 50,000/-.
Taxable Income from Rs. 5,00,000 – 10,00,000 Rs. 12,500/- + 20% of the amount by which the taxable income exceeds Rs. 5, 00,000/-.
Taxable Income more than Rs. 10,00,000 Rs. 112,500/- + 30% of the amount by which the taxable income exceeds Rs. 10, 00,000/-.

 

Surcharge:

10% of income tax, where total income is more than Rs. 50 lakhs but below Rs.1 crore.

15% of income tax, where the total income exceeds Rs.1 crore.

Education Cess: 2% on total of income tax + surcharge.

Secondary and Higher Education Cess: 1% on income tax including surcharge.

 

  • Co-operative Society

 

Income Slab Tax Rate
Taxable Income up to Rs. 10,000/- 10 % of the income
Taxable Income from Rs. 10,000- 20,000/- Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
Taxable Income more than Rs. 20,000/- Rs. 3.000/- + 30% of the taxable income in excess Rs. 20,000/-.
   

 

Surcharge: 12% surcharge of the Income Tax, where taxable income exceeds Rs. 1 crore.

Education Cess: 2% of the total of Income Tax + Surcharge.

Secondary and Higher Education Cess: 1% on income tax including surcharge.

 

  • Domestic Companies

Turnover up to Rs. 50 crores

Income Tax Rate is 25% of the taxable income

Turnover more than Rs.50 crores

Income Tax Rate is 30% of the taxable income

Surcharge:

7% surcharge if the income exceeds 1 crore but less than 10 crore

12% surcharge if the income exceeds 10 crore

Education Cess: 2% cess on income tax including surcharge

Secondary and Higher Education Cess: 1% cess on income tax including surcharge

 

  • Firm

Income Tax: 30% of taxable income.

Surcharge: 12% surcharge on the Income Tax, where taxable income exceeds Rs. 1 crore.

Education Cess: 3% of the total of Income Tax and Surcharge.

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