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Know the latest income tax slab rates for salaried individuals and other categories of taxpayers in India. Read this comprehensive guide by H&R Block India.

Income Tax Slab Rates in India

Last Update Date : January 17, 2018

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

  • Individual or HUF or Association of Person or Body of Individual or Artificial Juridical Person
  • Resident senior citizen
  • Resident super senior citizen
  • Partnership Firm
  • Local Authority
  • Domestic Company
  • Foreign Company
  • For a Co-operative Society

Income Tax Slab Rates for Assessment Year 2017-18

 

Slab Rates for Individual or HUF or Association of Person or Body of Individual or Artificial Juridical Person for A.Y. 2017-18 (F.Y. 2016-17)

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 – A surcharge @ 15% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

[ Read: Tax Deductions under Section 80C ]

Slab Rates for Resident Senior Citizen (between 60 and 80 years of age) for A.Y. 2017-18 (F.Y. 2016-17)

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 – A surcharge @ 15% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

Slab Rates for resident super senior citizen (80 years and above) for A.Y. 2017-18 (F.Y. 2016-17)

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 – A surcharge @ 15% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a partnership firm (including LLP) for A.Y. 2017-18 (F.Y. 2016-17)

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

Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: Education Cess – It is also applicable only when income exceeds Rs. 1 crore. The rate of surcharge is 2% of income tax plus surcharge.
Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a local authority for A.Y. 2017-18 (F.Y. 2016-17)

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

Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a domestic company for A.Y. 2017-18 (F.Y. 2016-17)

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 – A surcharge @ 7% or 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income lies between Rs. 1 crore & Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.
  • If income exceeds Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 10 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a foreign company for A.Y. 2017-18 (F.Y. 2016-17)

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 – A surcharge is applicable in the following 2 conditions subject to marginal relief:

  • If income lies between Rs. 1 crore & Rs. 10 crore, the applicable surcharge should be 2%.
  • If income exceeds Rs. 10 crore, the applicable surcharge should be 5%.

Marginal Relief on Surcharge –

  • If income lies between Rs. 1 crore & Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.
  • If income exceeds Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 10 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a Co-operative Society for A.Y. 2017-18 (F.Y. 2016-17)

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

Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

[ Calculate Your Income Tax Liability ]

Income Tax Slab Rates for Assessment Year 2018-19

Slab Rates for Individual or HUF or Association of Person or Body of Individual or Artificial Juridical Person for A.Y. 2018-19 (F.Y. 2017-18)

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 – A surcharge @ 10% of tax is applicable if income lies between Rs. 50 lakhs to Rs. 1 crore, but if it exceeds Rs. 1 crore then the surcharge will be payable @ 15%. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs. 50 Lakh or Rs. 1 crore as the case may be, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for Resident Senior Citizen (between 60 and 80 years of age) for A.Y. 2018-19 (F.Y. 2017-18)

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 – A surcharge @ 10% of tax is applicable if income lies between Rs. 50 lakhs to Rs. 1 crore, but if it exceeds Rs. 1 crore then the surcharge will be payable @ 15%. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs. 50 Lakh or Rs. 1 crore as the case may be, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for Resident Super Senior Citizen (80 years and above) for A.Y. 2018-19 (F.Y. 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 – A surcharge @ 10% of tax is applicable if income lies between Rs. 50 lakhs to Rs. 1 crore, but if it exceeds Rs. 1 crore then the surcharge will be payable @ 15%. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs. 50 Lakh or Rs. 1 crore as the case may be, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a partnership firm (including LLP) for A.Y. 2018-19 (F.Y. 2017-18)

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

Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a local authority for A.Y. 2018-19 (F.Y. 2017-18)

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

Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a domestic company for A.Y. 2018-19 (F.Y. 2017-18)

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 – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief.

  • If income lies between Rs. 1 crore & Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.
  • If income exceeds Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 10 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a foreign company for A.Y. 2018-19 (F.Y. 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 – A surcharge is applicable in the following 2 conditions subject to marginal relief:

  • If income lies between Rs. 1 crore & Rs. 10 crore, the applicable surcharge should be 2%.
  • If income exceeds Rs. 10 crore, the applicable surcharge should be 5%.

Marginal Relief on Surcharge –

  • If income lies between Rs. 1 crore & Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.
  • If income exceeds Rs. 10 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 10 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

 

Slab Rates for a Co-operative Society for 2018-19 (F.Y. 2017-18)

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

Add: Surcharge – A surcharge @ 12% of tax is applicable if income exceeds Rs. 1 crore. However, surcharge is subject to marginal relief as stated:

  • If income exceeds Rs. 1 crore, the applicable tax plus surcharge should not exceed the part of income which is in excess to Rs. 1 crore.

Add: “Education Cess” and “Secondary and Higher Education Cess” shall be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge.

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% (new rate) 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. His tax liability has effectively reduced in F.Y. 2017-18 for the same amount of income earned during F.Y. 2016-17 due to reduction in tax slab rate for income falling between Rs. 2,50,000 to Rs. 5,00,000.


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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