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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 : May 30, 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

Latest Income Tax Slab for FY 2018-19 (AY 2019-20) for Individuals (Upto 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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – A surcharge @ 10% of tax is applicable if income lies between Rs 50 lakh 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.

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 – 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.

[ 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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – A surcharge @ 10% of tax is applicable if income lies between Rs 50 lakh 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.

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 – 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.

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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – A surcharge @ 10% of tax is applicable if income lies between Rs 50 lakh 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.

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 – 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.

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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – 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.

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 – 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.

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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – 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.

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 – 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.

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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – 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.

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 – 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.

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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – 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.

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 – 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.

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 – 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” will be replaced by “Health and Education Cess” at the rate of 4%, on the amount of tax computed, inclusive of surcharge.

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 – 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.

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 – 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% 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.

[ Calculate Your Income Tax Liability ]

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