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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 : February 06, 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 FY 2016-17 (Assessment Year 2017-18)

 

Slab Rates for Individual (up to 60 years) or HUF or Association of Person or Body of Individual or Artificial Juridical Person for FY 2016-17 (AY 2017-18)

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 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.

Slab Rates for Resident Super Senior Citizen (80 years and above) 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.

 

Slab Rates for a Partnership Firm (including LLP) 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.

 

Slab 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.

 

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.

 

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.

 

Slab Rates for a 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.

[ Calculate Your Income Tax Liability ]

Income Tax Slab Rates for FY 2017-18 (Assessment Year 2018-19)

Slab Rates for Individual or HUF or Association of Person or Body of Individual or Artificial Juridical Person for FY 2017-18 (AY 2018-19)

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.

 

Slab Rates for Resident Senior Citizen (between 60 and 80 years of age) 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.

 

Slab Rates for Resident Super Senior Citizen (80 years and above) 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.

 

Slab Rates for a Partnership Firm (including LLP) 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.

 

Slab 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.

 

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.

 

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.

 

Slab Rates for a 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.

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Income Tax Slab Rates for FY 2018-19 (Assessment Year 2019-20)

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

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.

Slab Rates for Resident Senior Citizen (between 60 and 80 years of age) for 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.

Slab Rates for Resident Super Senior Citizen (80 years and above) for FY 2018-19 (AY 2019-20)

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.

Slab Rates for a Partnership Firm (including LLP) 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.

Slab 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.

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.

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.

Slab Rates for a 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.

Calculate Your Income Tax Liability ]

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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