08/08/2017

Income Tax Rate for 2017-2018 and 2016-2017


Income Tax Rate for 2017-2018 and 2016-2017
Income Tax Slabs | Income Tax Rate for 2017-2018 and 2016-2017

Income Tax Slab for FY 2017-18 (AY 2018-19), FY 2016-17(AY 2017-18) and previous years

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

For FY 2017-18, the slab rate for income tax up to Rs. 5 lakh has gone down from 10% to 5%.



PART I: Income Tax Slab for Individual Tax Payers and HUF (Less Than 60 Years Old) (Both Men and Women)

Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income from Rs 2,50,000 – Rs 5,00,000
5%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual and HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men and Women)

Income Slab
Tax Rate
Income up to Rs 3,00,000*
No tax
Income from Rs 3,00,000 – Rs 5,00,000
5%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh upto Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-1 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens(80 Years Old Or More) (Both Men and Women)

Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income up to Rs 5,00,000*
No tax
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Please also note that there is also a tax rebate of up to Rs.2,500 for a taxable income up to Rs. 3.5 lakhs.

INCOME TAX SLAB FOR DOMESTIC COMPANIES FOR FY 2017-18 (AY 2018-19)

The tax rate for companies with an annual turnover of up to Rs 50 crore has been brought down to 25% from 30%. Besides the above change, other rates remain the same as were in the previous year. Please see the income tax slab for domestic companies for FY 2016-17.

Income Tax Slab Rates for FY 2016-17(AY 2017-18)
PART I: Income Tax Slab for Individual Tax Payers and HUF (Less than 60 Years Old) (Both Men and Women)
Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income from Rs 2,50,000 – Rs 5,00,000
10%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2016-17 is up to Rs. 2,50,000 for individual and HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men and Women)
Income Slab
Tax Rate
Income up to Rs 3,00,000*
No tax
Income from Rs 3,00,000 – Rs 5,00,000
10%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2016-17 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens (80 Years Old Or More) (Both Men and Women)

Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income up to Rs 5,00,000*
No tax
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2016-17 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

Please also note that there is also a tax rebate of up to Rs 5,000 for a taxable income up to Rs 5 lakh.

How to Calculate Income Tax from Income Tax Slabs?
This example explains how to apply tax slabs to calculate income tax for FY 2016-17 (AY 2017-18). Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income, and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues for FY 2016-17 (AY 2017-18).

Income Slab
Tax Rate
Tax Calculation
Income up to Rs 2,50,000
No tax
Income from Rs 2,50,000 – Rs 5,00,000
10% (Rs 5,00,000 – Rs 2,50,000)
Rs 25,000
Income from Rs 5,00,000 – 10,00,000
20% (Rs 8,00,000 – Rs 5,00,000)
Rs 60,000
Income more than Rs 10,00,000
30%
nil
Tax
Rs 85,000
Cess
3% of Rs 85,000
Rs 2,550
Total tax in FY 2016-17 (AY 2017-18)
Rs 87,550

**Please note that Rohit is an individual assesse having an income tax exemption of Rs 2,50,000. For other assesse as mentioned in table Part II and III, the Income tax limit for availing the exemption would be Rs 3,00,000 and Rs 5,00,000 respectively.

INCOME TAX SLAB FOR DOMESTIC COMPANIES FOR FY 2016-17(AY 2017-18)

Income tax rate reduced to 29% (plus applicable surcharge and education cess) for domestic companies whose total turnover/gross receipts does not exceed Rs 5 crores.
In case you formed a manufacturing company, income tax rate of 25% for domestic companies, if set-up and registered after 1 March 2016 and does not claim any tax incentives.In other cases, the tax rates remain unchanged at 30% (plus applicable surcharge and education cess).

Effective tax rates are as under:
Particulars
Turnover/Gross receipts less than Rs 5 crores
Turnover/Gross receipts more than Rs 5 crore
Taxable income less than Rs 1 crore
Taxable income more than Rs 1 crore
Taxable income less than Rs 1 crore
Taxable income more than Rs 1 crore but less than Rs 10 crores
Taxable income more than Rs 10 crores
Corporate tax
29%
29%
30%
30%
30%
Surcharge
0
7%
0
7%
12%
Corporate tax + surcharge
29%
31%
30%
32.10%
33.60%
Education cess
3%
3%
3%
3%
3%
Effective tax rate
29.87%
31.96%
30.90%
33.06%
34.61%

Income Tax Slab Rates for FY 2015-16 (AY 2016-17)
[These income tax slab rates are also applicable for FY 2016-17 (AY 2017-18) and FY 2014-15 (AY 2015-16)]

PART I: Income Tax Slab For Individual Taxpayers and HUF (Less than 60 Years Old) (Both Men and Women)

Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income from Rs 2,50,000 – Rs 5,00,000
10%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2015-16 is up to Rs. 2,50,000 for individual and HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab For Senior Citizens (60 Years Old Or More but Less Than 80 Years Old)(Both Men and Women)

Income Slab
Tax Rate
Income up to Rs 3,00,000*
No tax
Income from Rs 3,00,000 – Rs 5,00,000
10%
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2015-16 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab For Senior Citizens (80 Years Old Or More) (Both Men and Women)
Income Slab
Tax Rate
Income up to Rs 2,50,000*
No tax
Income up to Rs 5,00,000*
No tax
Income from Rs 5,00,000 – 10,00,000
20%
Income more than Rs 10,00,000
30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2015-16 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

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

If you are registered as a company, the income tax slab rates do not apply to you. Domestic companies are taxed at 30% on the total income. A 5% surcharge is payable if income is more than Rs 1 crore but less than Rs 10 crore. If total income is more than Rs 10 crore, 10% surcharge is applicable.

Some Incomes are Taxed at Special Rates
Although total income is taxable at income tax slab rates mentioned above, some incomes are taxed at special rates.
Nature
Tax Rate
Short-term capital gains from assets (Other than shares and mutual funds)
At income tax slab rates listed above
Long-term capital gains from assets (Other than shares and mutual funds)
20%
Short-term capital gains on shares and equity mutual funds
15%
Long-term capital gains on shares and equity mutual funds
NIL
Short-term capital gains on debt mutual funds
At income tax slab rates listed above
Long-term capital gains on debt mutual funds
At 20% with indexation

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