Income Tax Slab Rates for 2017-18 & 2018-19 in India – Updated

Share

Budget 2018 Update: There is no change in the Income Tax Slabs for the Financial Year 2018-19 and the Income Tax Slabs which were applicable for Financial Year 2017-18 would continue to be applicable.

The Income Tax Slabs applicable for the Financial Year 2017-18 and Financial Year 2018-19 are as follows:

Income Tax Slab Rates for 2017-18 & 2018-19

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 2017-18 i.e. Assessment Year 2018-19 and Financial Year 18-19 i.e. Assessment Year 19-20. Education Cess @ 2% and SHEC @ 1% for FY 2017-18 shall be levied on the Tax computed using the Income Tax Rates given below while filing the Income Tax Return. For Financial Year 2018-19, Cess levied would be 4%.

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.

Recommended Read:

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

The following Income Tax Slab Rates are applicable for Financial Year 2017-18 and Financial Year 2018-19

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

Recommended Read:

2. For all Senior Citizens above 60 years of Age

The following Income Tax Slab Rates are applicable for Senior Citizens for the Financial Year 2017-18 i.e. Assessment Year 2018-19 and Financial Year 2018-19 i.e. Assessment Year 2019-20

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

 

Recommended Read:

3. 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 2018-19 & Assessment Year 19-20 i.e Previous Year 2017-18 & Previous Year 18-1.

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 @ 25% for Domestic Companies with a Turnover of less than Rs. 250 Crores and @ 30% in case of companies with turnover over Rs.250 Crores. These reduced income tax rates are applicable from Financial year 2018-19 onwards.

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.

From Financial Year 2018-19, Education Cess and Higher Education Cess have been removed and they would not be levied. From Financial Year 2018-19 onwards, a flat 4% Cess by the name of Health and Education Cess would be levied.

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 is an expert in helping people save Taxes legally. He can be reached by booking an appointment for Tax Advisory Service.