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Know the latest income tax slab rates for salaried individuals and other categories of taxpayers in India. This comprehensive guide by H&R Block India covers new income tax rates for FY 2018-19 and previous year tax slabs for FY 2017-18 and FY 2016-17. Also, learn how to calculate income tax based on the slab rate.

Income Tax Slab in India

Last Update Date : August 08, 2018

Income tax department charges Income tax from various entities at different rates based on their nature and amount of income. This guide by H&R Block India will give you the Income tax slab rates prescribed by the government for three financial years i.e. FY 16-17, FY 17-18 and FY 18-19. Based on the applicable slab, you can calculate your Income tax liability.

The Income Tax slab rates are different for different categories of taxpayers. We can divide Income Tax slab rates for the following categories:

Individual & HUF

Age<60 Years

FY 2018-19FY 2017-18FY 2016-17

Senior Citizens

Age 60-80 Years

FY 2018-19FY 2017-18FY 2016-17

Super Senior Citizens

Age >80 Years

FY 2018-19FY 2017-18FY 2016-17

Co-operative Society

FY 2018-19FY 2017-18FY 2016-17

What is Surcharge?

A surcharge is an additional charge or tax. In the context of Income Tax, a Surcharge is an additional tax calculated on the amount of Income Tax and is payable in addition to the Income tax.

How is Surcharge calculated?

To understand the calculation of surcharge, let’s look at an example.

e.g., a person has Rs 5,00,000 payable as Income Tax (I-T), and a surcharge @ 10% is applicable on this amount. The surcharge on tax payable (5,00,000 x 10%) will be Rs 50,000. Hence, the total amount payable (I-T + Surcharge) will be Rs 5,50,000.

What is the Rate of Surcharge?

The rate of Surcharge for Resident Individuals for AY 2018-19 and AY 2019-20,

  • The rate of surcharge is 10% – if income lies between Rs 50 lakh & Rs 1 crore.
    • However, if your income > Rs 50 lakh, I-T + Surcharge cannot exceed I-T payable on Rs 50 lakh by more than the amount of income that exceeds Rs 50 lakh. This upper limit on tax is called marginal relief.
  • The rate of Surcharge is 15% – if income > Rs 1 crore.
    • However, if your income > Rs 1 crore, I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore. This upper limit on tax is called marginal relief.

The rate of Surcharge for Partnership Firm (including LLP) and Local Authority for AY 2018-19 and AY 2019-20

  • The rate of surcharge is 12% – if income > Rs 1 crore.
    • However, if your income > Rs 1 crore, then I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore. This upper limit on tax is called marginal relief.

The rate of Surcharge for Domestic Company for AY 2018-19 and AY 2019-20,

  • The rate of surcharge is 7% – if income lies between Rs 1 crore & Rs 10 crore.
    • However, if your income > Rs 1 crore, I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore. This upper limit on tax is called marginal relief.
  • Rate of Surcharge is 12% – if income > Rs 10 crore.
    • However, if your income > Rs 10 crore, I-T + Surcharge cannot exceed I-T payable on Rs 10 crore by more than the amount of income that exceeds Rs 10 crore. This upper limit on tax is called marginal relief.

The rate of Surcharge for Foreign Company for AY 2018-19 and AY 2019-20,

  • The rate of Surcharge is 2% – if income lies between Rs 1 crore & Rs 10 crore.
    • However, if your income > Rs 1 crore, I-T + Surcharge cannot exceed I-T payable on Rs 1 crore by more than the amount of income that exceeds Rs 1 crore. This upper limit on tax is called marginal relief.
  • Rate of Surcharge is 5% – if income > Rs 10 crore.
    • However, if your income > Rs 10 crore, I-T + Surcharge cannot exceed I-T payable on Rs 10 crore by more than the amount of income that exceeds Rs 10 crore. This upper limit on tax is called marginal relief.

What are Education Cess, and Secondary and Higher Education Cess?

In the context of Income Tax, these two are additional taxes which are calculated on the applicable I-T plus surcharge. They are collected and used by the government for a specific purpose. They are applicable in AY 2018-19 and replaced by health and education cess for AY 2019-20.

How are Education Cess, and Secondary and Higher Education Cess calculated?

Let’s continue the previous example to understand the calculation of these two taxes.

In the previous example, the amount we got as Income Tax + Surcharge was Rs 5,50,000. Let’s assume that the rates of Education Cess (EC) and Secondary and Higher Education Cess (SHEC) are 2% and 1% respectively. Both will be calculated over Rs 5,50,000. Hence, the EC will be (5,50,000 x 2%) Rs 11,000 and SHEC will be (5,50,000 x 1%) Rs 5,500.

What are the Rates of EC and SHEC?

  • For AY 2018-19, rates of EC and SHEC are 2% and 1% respectively.
  • For AY 2019-20, rates of EC and SHEC have been replaced by Health and Education Cess of 4%.

What is Health and Education Cess?

In the context of Income Tax, Health and Education Cess (HEC) is additional taxes which are calculated on the applicable I-T plus surcharge. It is collected and used by the government for a specific purpose. HEC has replaced EC and SHEC for AY 2019-20.

How is Health and Education Cess calculated?

The HEC is calculated in the similar way as EC and SHEC are calculated.

What is the rate of HEC?

For AY 2019-20, the rate of HEC is 4%.

Latest Income Tax Slab for FY 2018-19 (AY 2019-20) for Individuals (up to 60 years), HUF, Association of Person, Body of Individual or Artificial Juridical Person

Income Range (in Rupees) Tax Rate (in %age)
Zero – 2,50,000 Nil
2,50,000-5,00,000 5%
5,00,000-10,00,000 20%
Above 10,00,000 30%

Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 5,00,000. The maximum amount of rebate allowed is Rs 5,000.

Add: Surcharge

Add:  Health and Education Cess

Current Income Tax Slab for FY 2017-18 for Individual

Income Range (in Rupees) Tax Rate (in %age)
Zero – 2,50,000 Nil
2,50,000-5,00,000 5%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 3,50,000. The maximum amount of rebate allowed is Rs 2,500.

Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Calculate your Income Tax Liability

Previous Year Income Tax Slab for FY 2016-17 for Individual

Income Range (in Rupees) Tax Rate (in %age)
Zero – 2,50,000 Nil
2,50,000-5,00,000 10%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 5,00,000. The maximum amount of rebate allowed is Rs 5,000.

Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

[ Next: How to Calculate Income Tax using Slab Rate ]

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Latest Income Tax Slab for  Senior Citizen (age from 60-80 years) FY 2018-19 (AY 2019-20)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 3,00,000 Nil
3,00,000-5,00,000 5%
5,00,000-10,00,000 20%
Above 10,00,000 30%

Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 5,00,000. The maximum amount of rebate allowed is Rs 5,000.

Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Current Tax Slab for Senior Citizen for FY 2017-18 (AY 2018-19)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 3,00,000 Nil
3,00,000-5,00,000 5%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 3,50,000. The maximum amount of rebate allowed is Rs 2,500.

Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Previous Year Tax Slab for Senior Citizen for FY 2016-17 (AY 2017-18)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 3,00,000 Nil
3,00,000-5,00,000 10%
5,00,000-10,00,000 20%
Above 10,00,000 30%
Less: Rebate u/s 87A – It is only applicable to resident individuals with income up to Rs 5,00,000. The maximum amount of rebate allowed is Rs 5,000.

Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Latest Super Senior Citizen Tax Slab for FY 2018-19 (AY 2019-20) for  (Age > 80 Years)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 5,00,000 Nil
5,00,000 – 10,00,000 20%
Above 10,00,000 30%

Add: Surcharge

Add: Health and Education Cess

Current Super Senior Citizen Tax Slab for FY 2017-18 (AY 2018-19)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 5,00,000 Nil
5,00,000-10,00,000 20%
Above 10,00,000 30%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Previous Year Super Senior Citizen Tax Slab for FY 2016-17 (AY 2017-18)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 5,00,000 Nil
5,00,000 – 10,00,000 20%
Above 10,00,000 30%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Latest Income Tax Slab for Partnership Firm for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
30% 12% 4%

Add: Surcharge

Add: Health and Education Cess

Current Income Tax Slab for Partnership Firm for FY 2017-18 (AY 2018-19)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
30% 12% 2% 1%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Previous Year Income Tax Slab for Partnership Firm for FY 2016-17 (AY 2017-18)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
30% 12% 2% 1%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Latest Tax Rates for a Local Authority for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
30% 12% 4%

Add: Surcharge

Add: Health and Education Cess

Current Tax Rates for a Local Authority for FY 2017-18 (AY 2018-19)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
30% 12% 2% 1%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Previous Year Tax Rates for a Local Authority for FY 2016-17 (AY 2017-18)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
30% 12% 2% 1%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Latest Tax Slab Rates for a Domestic Company for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
29% for income up to Rs 5 crore 7% for income between Rs 1 crore & Rs 10 crore 4% of income tax plus surcharge
30% for income exceeding Rs 5 crore 7% for income between Rs 1 crore & Rs 10 crore and 12% if income exceeds Rs 10 crore

Add: Surcharge

Add: Health and Education Cess

Current Tax Slab Rates for a Domestic Company for FY 2017-18 (AY 2018-19)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
25% for income up to Rs 50 crore 7% for income between Rs 1 crore & Rs. 10 crore 2% of income tax plus surcharge 1% of income tax plus surcharge
30% for income exceeding Rs 50 crore 7% for income between Rs 1 crore & Rs 10 crore and 12% if income exceeds Rs 10 crore
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Previous Year Tax Slab Rates for a Domestic Company for FY 2016-17 (AY 2017-18)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
29% for income up to Rs 5 crore 7% for income between Rs 1 crore & Rs 10 crore 2% of income tax plus surcharge 1% of income tax plus surcharge
30% for income exceeding Rs 5 crore 7% for income between Rs 1 crore & Rs 10 crore and 12% if income exceeds Rs 10 crore
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Latest Slab Rates for a Foreign Company for FY 2018-19 (AY 2019-20)

Tax Rate Surcharge Health and Education Cess
Income b/w Rs 1 crore & Rs 10 crore Income exceeds Rs 10 crore
50% on royalty received from government or Indian concern* 2% 5% 4%
40% on any other income 2% 5%

*Note: Royalty here means –

  • Royalty received from government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961 and 31 March, 1976
  • Fees for providing technical services in pursuance of an agreement (approved by Central government) made between February 29, 1964 and April 1, 1976

Add: Surcharge

Add: Health and Education Cess

Current Slab Rates for a Foreign Company for FY 2017-18 (AY 2018-19)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
Income b/w Rs 1 crore & Rs 10 crore Income exceeds Rs 10 crore
50% on royalty received from government or Indian concern* 2% 5% 2% 1%
40% on any other income 2% 5%
*Note: Royalty here means –

  • Royalty received from government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961 and 31 March, 1976
  • Fees for providing technical services in pursuance of an agreement (approved by Central government) made between February 29, 1964 and April 1, 1976

Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Previous Year Slab Rates for a Foreign Company for FY 2016-17 (AY 2017-18)

Tax Rate Surcharge Education Cess Secondary & Higher
Education Cess
Income b/w Rs 1 crore & Rs 10 crore Income exceeds Rs 10 crore
50% on royalty received from government or Indian concern* 2% 5% 2% 1%
40% on any other income 2% 5%
*Note: Royalty here means –

  • Royalty received from government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961 and 31 March, 1976
  • Fees for providing technical services in pursuance of an agreement (approved by Central government) made between February 29, 1964 and April 1, 1976

Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Latest Tax Rates for Co-operative Society for FY 2018-19 (AY 2019-20)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 10,000 10%
10,000-20,000 20%
Above 20,000 30%

Add: Surcharge

Add: Health and Education Cess

Current Tax Rates for Co-operative Society for FY 2017-18 (AY 2018-19)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 10,000 10%
10,000 – 20,000 20%
Above 20,000 30%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

Previous Year Tax Rates for Co-operative Society for FY 2016-17 (AY 2017-18)

Income Range (in Rupees) Tax Rate (in %age)
Zero – 10,000 10%
10,000-20,000 20%
Above 20,000 30%
Add: Surcharge

Add: Education Cess and Secondary and Higher Education Cess

How to Calculate Income Tax from Income Tax Slab Rates?

Suppose Mr Nikhil has an annual income of Rs. 10 lakh in the Financial Year 2016-17. How will we calculate his tax liability for Assessment Year 2017-18?

Income (in rupees) Tax Rate (in %age) Calculation
Zero – 2,50,000 Nil 2,50,000 x 0 = 0
2,50,000 – 5,00,000 10% 2,50,000 x 10% = 25,000
5,00,000 – 10,00,000 20% 5,00,000 x 20% = 1,00,000
Above 10,00,000 30% 0 x 30% = 0
Total tax = (0 + 25,000 + 1,00,000 + 0) x 1.03 = Rs 1,28,750

So, his tax liability for Financial Year 2016-17 comes out to be Rs 1,28,750.

Now suppose that he earns the same amount of income in the Financial Year 2017-18. How will we calculate his tax liability for Assessment Year 2018-19?

Income (in rupees) Tax Rate (in %age) Calculation
Zero – 2,50,000 Nil 2,50,000 x 0 = 0
2,50,000 – 5,00,000 5% 2,50,000 x 5% = 12,500
5,00,000 – 10,00,000 20% 5,00,000 x 20% = 1,00,000
Above 10,00,000 30% 0 x 30% = 0
Total tax = (0 + 12,500 + 1,00,000 + 0) x 1.03 = Rs 1,15,875

So, his tax liability for Financial Year 2017-18 comes out to be Rs 1,15,875.

Now suppose that he earns the same amount of income in the Financial Year 2018-19. How will we calculate his tax liability for Assessment Year 2019-20?

Income (in rupees) Tax Rate (in %age) Calculation
Zero – 2,50,000 Nil 2,50,000 x 0 = 0
2,50,000 – 5,00,000 5% 2,50,000 x 5% = 12,500
5,00,000 – 10,00,000 20% 5,00,000 x 20% = 1,00,000
Above 10,00,000 30% 0 x 30% = 0
Total tax = (0 + 12,500 + 1,00,000 + 0) x 1.04 = Rs 1,17,000

So, his tax liability for Financial Year 2017-18 comes out to be Rs 1,17,000. His tax liability has effectively increased in FY 2018-19 for the same amount of income earned during FY 2017-18 due to increase in cess.

Note: This tax calculation is a basic example for your understanding which is applicable only for individuals (up to 60 years of age) without accounting for tax deductions and exemptions.

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