413, VIkasdeep Building, Laxmi Nagar District Centre, Delhi-110092
+919582101001
shashank@dda-co.com
Income Tax Slab Rates for Financial year (FY) 2017-18 , Assessment Year (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 & HUF (Less Than 60 Years Old) (Both Men & 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 & 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 & 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 & 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) | |
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 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 & HUF other than those covered in Part(II) or (III) | |
| 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) | |
| 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) | |
Shahsank has a total taxable income of Rs 9,00,000. 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 9,00,000 – Rs 5,00,000) | Rs 80,000 |
| Income more than Rs 10,00,000 | 30% | nil |
| Tax | Rs 1,05,000 | |
| Cess | 3% of Rs ,105,000 | Rs 3,150 |
| Total tax in FY 2016-17 (AY 2017-18) | Rs 1,08,150 |
**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 & III, the Income tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000 respectively.
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 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 & HUF other than those covered in Part(II) or (III) | |
| 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) | |
| 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) | |
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.
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 & mutual funds) | At income tax slab rates listed above |
| Long-term capital gains from assets (Other than shares & 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 |
Regards
CA Shashank Agrawal