Income Tax slab rates

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

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One of the major milestones in the Union Budget 2017 was the revision of the existing Income Tax slab rates. All the profiles have been re-arranged financially and the corresponding tax rates have been applied. The micro-finance sector will benefit from this as income tax has been made 25% ( reduced from 30%) if the turnover is up to 50 crore INR. Also, the lower part of the slab rate will receive a relaxation in income tax and thus all individuals with income less than 5 lakhs per annum will have to apply for lower rates by filing an Income Tax Return form. Given below are the slab rates for the fiscal year 2017-18 (AY 2018-19).

Income Tax slab rates

Income Tax Slab Rates: Individual Taxpayers

Income Tax Slab Salary Division Income Tax Slab Rate
Individuals with Income up to 2.5 Lakhs INR NO TAX
Income between 2.5 Lakhs INR to 5 Lakhs INR 5% of total salary
Income between 5 Lakhs INR to 10 Lakhs INR 20% of total salary
Income above 10 Lakhs INR 30% of the total salary

There is a surcharge or additional tax payment for certain income groups. They have the Income Tax slab rates as follows:

Income Tax Slab Salary Division Income Tax Surcharge Rate
Income between 50 Lakhs INR to 1 crore INR 10% of Income Tax
Income above 1 crore INR 15% of Income Tax


Note: For individuals with income greater than 1 crore INR, there is a relaxation in the surcharge amount. Thus technically the surcharge is 12% of the Income Tax

There are some extra taxes applicable apart from the usual rates and the surcharge. These are called Cess charges. The Cess amount is a total of 3% of the Income Tax. If there is a surcharge the cess is applicable on Income Tax paid plus the surcharge.

The 3% Cess is divided as follows:

  • Education Cess: 2% cess charge applicable on the income tax plus the surcharge amount.
  • Higher Education or Secondary Education Cess: 1% cess charge applicable on income tax plus surcharge amount.

 

Income Tax Slab Rates: Legal Association, Bodies, And Artificial Judicial

The income tax levied on legal associations, legal bodies, artificial judicial persons, and taxpayers of HUF    (Hindu Undivided Families) follow a different tax slab. The Income Tax Slab rates are as follows:

Income Tax Slab Financial  Division Income Tax Slab Rate
Income up to 2.5 Lakhs INR NO TAX
Income between 2.5 Lakhs INR to 5 Lakhs INR 10%
Income between 5 Lakhs INR to 10 Lakhs INR 20%
Income above 10 Lakhs INR 30%

The Surcharge and Cess are as applicable for individual taxpayers/

 

Income Tax Slab Rates: Resident Senior Citizens

The income tax levied on senior citizens residing in India, that is the individuals who are above 60 years and below 80 years are as follows:

Income Tax Slab Financial Division Income Tax Slab Rate
Up to 3 Lakhs INR NO TAX
3 Lakhs INR to 5 Lakhs INR 10%
5 Lakhs INR to 10 Lakhs INR 20%
Above 10 Lakhs INR 30%

The Surcharge and Cess are as applicable for individual taxpayers.

Income Tax Slab Rates: Resident Super Senior Citizens

The income tax levied on super senior citizens residing in India that is the individuals who are above 80 years of age are as follows

Income Tax Slab Salary Division Income Tax Slab Rate
Up to 5 Lakhs INR NO TAX
5 Lakhs INR to 10 Lakhs INR 20%
Above 10 Lakhs INR 30%

The Surcharge and Cess are applicable as per individual taxpayers.

 

 

 

 

 

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