Income Tax Slab Rates for 2016-17 & 2017-18 in India – Updated

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Budget 2017 Update: The rate of Income Tax has been reduced from 10% to 5% for Income from Rs. 2.5 Lakhs to 5 Lakhs. There is no other change in the Income Tax slab Rates. The Income Tax for Income from Rs. 5 Lakhs to Rs. 10 Lakhs is the same i.e. 20% and above Rs 10 Lakhs is also the same i.e. 30%. The rates of surcharge and its applicability has also been changed with effect from Financial Year 2017-18 onwards and the same has been explained below.

Income Tax Slab Rates for 2016-17 & 2017-18

The Income Tax Slab Rates are different for different categories of taxpayers.

The Income Tax Slab Rates can be divided in the following categories:-

A.INDIVIDUALS & HUF

  1. For Male & Female Individuals below 60 Years of Age and HUF
  2. For all Senior Citizen above 60 years of Age
  3. For all Super Senior Citizen above 80 years of Age
  4. Applicability of Surcharge

B. BUSINESSES

  1. Co-operative Society
  2. Firms, Local Authority & Domestic Company

C. Education Cess and SHEC

Income Tax Slab Rates

A. FOR INDIVIDUALS & HUF

The following Income Tax Slabs are applicable for the Financial Year 2016-17 i.e. Assessment Year 2017-18 and Financial Year 17-18 i.e. Assessment Year 18-19. Education Cess @ 2% and SHEC @ 1% shall be levied on the Tax computed using the Income Tax Rates given below while filing the Income Tax Return.

It is pertinent to note here that the Govt also provides Rebate under Section 87A for taxpayers having low Income. This rebate has been reduced from Rs. 5000 p.a. to Rs. 2,500 p.a. in the Budget 2017. Moreover, this Rebate is only available only to Resident Individuals whose Total Income does not exceed Rs. 3,50,000.

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1. For Male & Female Individuals below 60 years of age & HUF

The Income Tax Slab Rates are the same for both Males as well as Females. The following Income Tax Slabs are the applicable for Financial Year 2016-17

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 2,50,000 NIL
Where the Total Income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 10% of the Amount by which it exceeds Rs. 2,50,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

 

The following Income Tax Slab Rates are applicable for Financial Year 2017-18

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 2,50,000 NIL
Where the Total Income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000 5% of the Amount by which it exceeds Rs. 2,50,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

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3. For all Senior Citizens above 60 years of Age

The following Income Tax Slab Rates are applicable for the Financial Year 2016-17 i.e. Assessment Year 2017-18 for Senior Citizens

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 3,00,000 NIL
Where the Total Income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 10% of the Amount by which it exceeds Rs. 3,00,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

 

The following Income Tax Slab Rates are applicable for Senior Citizens for the Financial Year 2017-18 i.e. Assessment Year 2018-19

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 3,00,000 NIL
Where the Total Income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 5% of the Amount by which it exceeds Rs. 3,00,000
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

 

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4. For all Senior Citizens above 80 Years of Age

Income Tax Slabs Income Tax Rates
Where Total Income does not exceed Rs. 5,00,000 NIL
Where the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 20% of the Amount by which it exceeds Rs. 5,00,000
Where the Total Income exceeds Rs. 10,00,000 30% of the Amount by which it exceeds Rs. 10,00,000

Computation of Age

If an Individual attains the age of 60 years or 80 years during the financial year, his age shall be regarded as 60/80 (as the case may be), for that whole Financial Year.

Surcharge to be levied if Income more than Rs. 50 Lakhs

If the Income of the Individual/ HUF/ AOP/ BOI is more than 50 Lakhs, surcharge would also be applicable. Surcharge would be applicable as per the below mentioned slabs:-

Level of Income Surcharge
Less than Rs. 50 Lakhs NIL
More than Rs. 50 Lakhs but less than Rs. 1 Crores 10%
More than Rs. 1 Crores 15%

It is pertinent to note here that Surcharge is not levied on the Income but is levied on the Income Tax so computed. The manner of computation of Surcharge has been very nicely explained in this article – Surcharge on Income Tax

After the computation of Total Tax Payable computed as per the Income Tax Slabs, the Balance Income Tax payable after the deduction of TDS as shown in Form 16/Form 16A and reflected in Form 26AS shall be payable vide Challan No. 280 in the form of Advance Tax in Installments before the specified Due Dates or else Interest on delay in payment of Income Tax would be liable to be paid.

income-tax-slabs

B. SLABS FOR BUSINESS

The following Income Tax Slab Rates shall be applicable for the Assessment Year 2016-17 & Assessment Year 17-18 i.e Previous Year 2015-16 & Previous Year 16-17 . Education Cess @ 2% and SHEC @1% shall be levied on the Income Tax so computed.

1. For Co-operative Society

Income Tax Slabs Income Tax Rates
Where the Total Income does not exceed Rs. 10,000 10% of the Income
Where the Total Income exceeds Rs. 10,000 but does not exceed Rs. 20,000 20% of the Amount by which it exceeds Rs. 10,000
Where the Total Income exceeds Rs. 20,000 30% of the Amount by which it exceeds Rs. 20,000

2. For Firms and Local Authority 

Income Tax Slab Rates wont 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 schedule. The following schedule is applicable from Financial Year 2017-18 onwards

Level of Income Surcharge
Less than Rs. 1 Crore  No Surcharge
More than Rs. 1 Crores 12%

Surcharge @12% would also be levied on Tax in case the total income exceeds Rs. 1 Crore during the Financial Year. However, no Tax shall be levied in case the Income is less than Rs. 1 Crores.

3. For Domestic Companies

Income Tax on Domestic Companies is levied @ 30% of 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. 50 Crores. These reduced income tax rates are applicable from Financial year 2017-18 onwards.

For Domestic Companies with turnover of more than Rs. 50 Crores, Income Tax would continue to be levied at 30%.

Surcharge is also levied in case of Domestic Companies as per the below mentioned schedule. The following schedule is applicable from Financial Year 2017-18 onwards:

Level of Income Surcharge
Less than Rs. 1 Crore  No Surcharge
More than Rs. 1 Crore but less than Rs. 10 Crore 7%
More than Rs. 10 Crores 12%

 

C. Education Cess and SHEC

Education Cess @ 2% and Secondary and Higher Education Cess @1% would also be levied on the Total Tax Computed (incl of Surcharge). This Cess is applicable for all categories of taxpayers mentioned above.

Karan is CA by Qualification with the rare distinction of being awarded All India Rank 22. He is also the founder of this website and loves to help people with their Tax Queries.