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Modified on : 7 August, 2018

Income Tax Slabs and Rates for AY 2017-18
( Applicable on income earned during 01.04.2016 to 31.03.2017 )

Income Tax in India provide different tax rates for various categories of tax payers. View more ...

The Income Tax rates for Individuals, HUFs, AOP, BOI and Co-operatives are progressive in nature, where a lower tax rate is imposed on low-income earners compared to those with higher income, making it based on the taxpayer's ability to pay. That means it takes a larger percentage from high-income earners than it does from low-income earners. Individuals, HUFs, AOP, BOI and Co-operatives are taxed as per different slab rates ( varies from Nil to 30% ). However, Firms and Companies are taxed on fixed rate basis, except for certain specified incomes.

When income increases a specified limit(s), Surcharge on Income Tax is charged at specified Surcharge rate on Income Tax. The specified limit(s) for charging Surcharge and Surcharge rates are different for different categories of tax payers.

Education Cess is charged @ 3% of (Income Tax + Surcharge).

Assessment Year
Tax payer Category

Individual resident aged below 60 years (Individual resident born on or after 1st April 1957)

Income SlabIncome Tax
Upto ₹ 2,50,000/-.NIL
₹ 2,50,000/- to ₹ 5,00,000/-.10% of (taxable income - 2,50,000). Tax Relief u/s 87A
In case taxable income is upto ₹ 5,00,000/-, income tax chargeable or ₹ 5,000/-, whichever is less.
₹ 5,00,000/- to ₹ 10,00,000/-.₹ 25,000/- + 20% (taxable income - 5,00,000).
Above ₹ 10,00,000/-.₹ 125,000/- + 30% of (taxable income - 10,00,000).
Surcharge ( subject to Marginal Relief )15% of Income Tax, in case taxable income is above ₹ 1 crore.
Education Cess 3% of (Income Tax + Surcharge).

Senior Citizen (Individual resident born on or after 1st April 1937 but before 1st April 1957)

Income SlabIncome Tax
Upto ₹ 3,00,000/-NIL
₹ 3,00,000/- to ₹ 5,00,000/-10% of (taxable income - 3,00,000). Tax Relief u/s 87A
In case taxable income is upto ₹ 5,00,000/-, income tax chargeable or ₹ 5,000/-, whichever is less.
₹ 5,00,000/- to ₹ 10,00,000/-₹ 20,000/- + 20% of (taxable income - 5,00,000).
Above ₹ 10,00,000/-₹ 120,000/- + 30% of (taxable income - 10,00,000).
Surcharge ( subject to Marginal Relief )15% of Income Tax, in case taxable income is above ₹ 1 crore.
Education Cess3% of (Income Tax + Surcharge).

Very Senior Citizen (Individual resident born before 1st April 1937)

Income SlabIncome Tax
Upto ₹ 5,00,000/-.NIL
₹ 5,00,000/- to ₹ 10,00,000/-20% of (taxable income - 5,00,000).
Above ₹ 10,00,000/-₹ 100,000/- + 30% of (taxable income - 10,00,000).
Surcharge ( subject to Marginal Relief )15% of Income Tax, in case taxable income is above ₹ 1 crore.
Education Cess3% of (Income Tax + Surcharge).

Any NRI or HUF or AOP or BOI or AJP

Income SlabIncome Tax
Upto ₹ 2,50,000/-.NIL
₹ 2,50,000/- to ₹ 5,00,000/-.10% of (taxable income - 2,50,000).
₹ 5,00,000/- to ₹ 10,00,000/-.₹ 25,000/- + 20% of (taxable income - 5,00,000).
Above ₹ 10,00,000/-.₹ 125,000/- + 30% of (taxable income - 10,00,000).
Surcharge ( subject to Marginal Relief )15% of Income Tax, in case taxable income is above ₹ 1 crore.
Education Cess3% of (Income Tax + Surcharge).

Co-operative Society

Income SlabIncome Tax
Upto ₹ 10,000/-.10% of the income.
₹ 10,000/- to ₹ 20,000/-.₹ 1,000/- + 20% (taxable income -10,000).
Above ₹ 20,000/-₹ 3,000/- + 30% of (taxable income - 20,000).
Surcharge ( subject to Marginal Relief )12% of Income Tax, in case taxable income is above ₹ 1 crore.
Education Cess3% of (Income Tax + Surcharge).

Firm

Income Tax30% of taxable income.
Surcharge ( subject to Marginal Relief )12% of Income Tax, in case taxable income is above ₹ 1 crore.
Education Cess3% of (Income Tax + Surcharge).

Local Authority

Income Tax30% of taxable income.
Surcharge ( subject to Marginal Relief )12% of Income Tax, in case taxable income is above ₹ 1 crore.
Education Cess3% of (Income Tax + Surcharge).

Domestic Company - Turnover upto ₹ 5 crores

Income Tax29% of taxable income.
Surcharge ( subject to Marginal Relief )7% of income tax, in case taxable income is above ₹ 1 crore.
12% of income tax, in case taxable income is above ₹ 10 crores.
Education Cess3% of (Income Tax + Surcharge).

Domestic Company - Turnover exceeding ₹ 5 crores

Income Tax30% of taxable income.
Surcharge ( subject to Marginal Relief )7% of income tax, in case taxable income is above ₹ 1 crore.
12% of income tax, in case taxable income is above ₹ 10 crores.
Education Cess3% of (Income Tax + Surcharge).

Company other than a Domestic Company

IncomeIncome Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government50%
Any other income40%
Surcharge ( subject to Marginal Relief )2% of income tax, in case taxable income is above ₹ 1 crore.
5% of income tax, in case taxable income is above ₹ 10 crores.
Education Cess3% of (Income Tax + Surcharge).

*Marginal Relief on Surcharge

In case taxable income exceeds ₹ 1 crore / ₹ 10 crore Surcharge is payable on income tax at applicable rates. If increase in 'Income Tax + Surcharge' is more than the increase in income over ₹ 1 crore / ₹ 10 crore, the 'Surcharge' is reduced by such amount so that the 'Income Tax + Surcharge' become equal to increase in 'Total Taxable Income' over Rs. 50 lacs / 1 Crore respectively. The amount so reduced from 'Surchage' is 'Marginal Relief on Surcharge'. View examples.

Example 1

In case of an individual resident (< 60 years) / HUF / NRI having taxable income of ₹ 50,01,000/-

1Income Tax on income of ₹ 1,00,01,000/-28,25,300
2Surcharge on income of ₹ 1,00,01,000/-4,23,795
3Income Tax + Surcharge on income of ₹ 1,00,01,000/- (1 + 2)32,49,095
4Income Tax on income of ₹ 1 crore28,25,000
5Surcharge on income of ₹ 1 crore0
6Income Tax + Surcharge on income of ₹ 1 crore (4 + 5) 28,25,000
7Increase in Income over ₹ 1 crore1000
8Income Tax + Surcharge on income of ₹ 1 crore + Increase in Income over ₹ 1 crore28,26,000
9Income Tax and Surcharge payable on income of ₹ 1,00,01,000/- (Lower of 3 and 8 )28,26,000
10 Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]4,23,095

Example 2

In case of an individual resident (< 60 years) / HUF / NRI having taxable income of ₹ 1 crore 10 lacs

1Income Tax on income of of ₹ 1 crore 10 lacs31,25,000
2Surcharge on income of of ₹ 1 crore 10 lacs4,68,750
3Income Tax + Surcharge on income of of ₹ 1 crore 10 lacs (1 + 2)35,93,750
4Income Tax on income of ₹ 1 crore28,25,000
5Surcharge on income of ₹ 1 crore0
6Income Tax + Surcharge on income of ₹ 1 crore (4 + 5) 28,25,000
7Increase in Income over ₹ 1 crore10,00,000
8Income Tax + Surcharge on income of ₹ 1 crore + Increase in Income over ₹ 1 crore38,25,000
9Income Tax and Surcharge payable on income of of ₹ 1 crore 10 lacs (Lower of 3 and 8 )35,93,750
10 Marginal Relief on Surcharge [If (3 - 8) is more than '0' (3 - 8), else '0' ]0

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