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Income Tax Slab in India

Last Update Date : May 21, 2019
Estimated Read Time: 12 min

Income tax slabs are sets of income tax rates prescribed by the Income Tax Department of India for various categories of taxpayers based on their income level and certain other criteria prescribed in the Income Tax Act, 1961.

Read this guide by H&R Block to know the slab rates applicable on your income in the AY 2019-20, AY 2018-19, AY 2017-18. Based on the applicable slab, you can calculate your income tax liability.

Income Tax Slab Rates for Different Types of Taxpayers

The Income Tax Department divides the taxpayers into eight broad categories for the purpose of taxation. The tax slabs are different for each type of taxpayer. The categories are as follows:

Resident Individual, NRI & 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

Video on Income Tax Slab Rates in India

Current Income Tax Slab — AY 2019–20 (FY 2018–19)

Income Tax Slab for Individuals (up to 60 Years), Non-Residents (Irrespective of Age), HUF, Association of Person, Body of Individual and Other Artificial Juridical Person for AY 2019–20

Income Range (in Rupees)Tax Rate (in %age)
Zero–2,50,000Nil
2,50,000–5,00,0005%
5,00,000–10,00,00020%
Above 10,00,00030%

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 5,000.)

Add: Surcharge

Add:  Health and education cess

Income Tax Slab for AY 2019–20 for Senior Citizens

Income Range (in Rupees)Tax Rate (in %age)
Zero–3,00,000Nil
3,00,0005,00,0005%
5,00,00010,00,00020%
Above 10,00,00030%

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 5,000.)

Add: Surcharge

Add: Education cess and secondary and higher education cess

Tax Slab for FY 2018–19 for Super Senior Citizen

Income Range (in Rupees)Tax Rate (in %age)
Zero–5,00,000Nil
5,00,000–10,00,00020%
Above 10,00,00030%

Add: Surcharge

Add: Health and education cess

Tax Slab Rate for AY 2019–20 for Partnership Firm

Tax RateSurchargeHealth and Education Cess
30%12%4%

Add: Surcharge

Add: Health and education cess

Income Tax Slab Rates for AY 2019–20 for a Domestic Company

Tax RateSurchargeHealth and Education Cess
29% for income up to Rs 5 Crore7% for income between Rs 1 Crore & Rs 10 Crore4% of income tax plus surcharge
30% for income exceeding Rs 5 Crore7% for income between Rs 1 Crore & Rs 10 Crore and 12% if income exceeds Rs 10 Crore

Add: Surcharge

Add: Health and education cess

Slab Rates for AY 2019–20 for a Foreign Company

Tax RateSurchargeHealth and Education Cess
Income b/w Rs 1 Crore & Rs 10 CroreIncome exceeds Rs 10 Crore
50% on royalty received from government or Indian concern*2%5%4%
40% on any other income2%5%

*Note: Royalty here means:

  • Royalty received from the government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961, and March 31, 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

Tax Rates for AY 2019–20 for a Local Authority

Tax RateSurchargeHealth and Education Cess
30%12%4%

Add: Surcharge

Add: Health and education cess

Income Tax Slab for AY 2019–20 for a Co-operative Society

Income Range (in Rupees)Tax Rate (in %age)
Zero–10,00010%
10,000–20,00020%
Above 20,00030%

Add: Surcharge

Add: Health and education cess

Previous Year’s Slab — AY 2018–19 (FY 2017–18)

Income Tax Slab for Individuals (up to 60 Years), Non-Residents (Irrespective of Age), HUF, Association of Person, Body of Individual or Artificial Juridical Person

Income Range (in Rupees)Tax Rate (in %age)
Zero – 2,50,000Nil
2,50,000–5,00,0005%
5,00,000–10,00,00020%
Above 10,00,00030%
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

Tax Slab for Senior Citizens (age from 60-80 years)

Income Range (in Rupees)Tax Rate (in %age)
Zero–3,00,000Nil
3,00,000–5,00,0005%
5,00,000–10,00,00020%
Above 10,00,00030%
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

Tax Slabs for Super Senior Citizen (Age > 80 Years)

Income Range (in Rupees)Tax Rate (in %age)
Zero–5,00,000Nil
5,00,000–10,00,00020%
Above 10,00,00030%
Add: Surcharge

Add: Education cess and secondary and higher education cess

Income Tax Slab for Partnership Firm in India

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
30%12%2%1%
Add: Surcharge

Add: Education cess and secondary and higher education cess

Tax Rates for a Local Authority

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
30%12%2%1%
Add: Surcharge

Add: Education cess and secondary and higher education cess

Tax Slab Rates for a Domestic Company

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
25% for income up to Rs 50 Crore7% for income between Rs 1 Crore & Rs. 10 Crore2% of income tax plus surcharge1% of income tax plus surcharge
30% for income exceeding Rs 50 Crore7% 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

Tax Slab Rates for a Foreign Company

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
Income b/w Rs 1 Crore & Rs 10 CroreIncome exceeds Rs 10 Crore
50% on royalty received from government or Indian concern*2%5%2%1%
40% on any other income2%5%
*Note: Royalty here means:

  • Royalty received from the government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961, and March 31, 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

Tax Rates for Co-operative Society

Income Range (in Rupees)Tax Rate (in %age)
Zero–10,00010%
10,000–20,00020%
Above 20,00030%
Add: Surcharge

Add: Education cess and secondary and higher education cess

Tax Slab for AY 2017–18 (FY 2016–17)

Income Tax Slab for Individuals (up to 60 Years), Non-Residents (Irrespective of Age), HUF, Association of Person, Body of Individual and any Other Artificial Juridical Person for AY 2017–18

Income Range (in Rupees)Tax Rate (in %age)
Zero–2,50,000Nil
2,50,000–5,00,00010%
5,00,000–10,00,00020%
Above 10,00,00030%
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 5,000.)

Add: Surcharge

Add: Education cess and secondary and higher education cess

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

Tax Slab for Senior Citizen — AY 2017–18

Income Range (in Rupees)Tax Rate (in %age)
Zero–3,00,000Nil
3,00,000–5,00,00010%
5,00,000–10,00,00020%
Above 10,00,00030%
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 5,000.)

Add: Surcharge

Add: Education cess and secondary and higher education cess

Tax Rates for Super Senior Citizen — AY 2017–18

Income Range (in Rupees)Tax Rate (in %age)
Zero–5,00,000Nil
5,00,000–10,00,00020%
Above 10,00,00030%
Add: Surcharge

Add: Education cess and secondary and higher education cess

Income Tax Slab for AY 2017–18 for Partnership Firm

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
30%12%2%1%
Add: Surcharge

Add: Education cess and secondary and higher education cess

Income Tax Rates for a Local Authority — AY 2017–18

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
30%12%2%1%
Add: Surcharge

Add: Education cess and secondary and higher education cess

Tax Slab Rates for a Domestic Company — AY 2017–18

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
29% for income up to Rs 5 Crore7% for income between Rs 1 crore & Rs 10 Crore2% of income tax plus surcharge1% of income tax plus surcharge
30% for income exceeding Rs 5 Crore7% 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

Income Tax Slab for a Foreign Company — AY 2017–18

Tax RateSurchargeEducation CessSecondary & Higher
Education Cess
Income b/w Rs 1 Crore & Rs 10 CroreIncome exceeds Rs 10 Crore
50% on royalty received from government or Indian concern*2%5%2%1%
40% on any other income2%5%
*Note: Royalty here means:

  • Royalty received from the government or an Indian concern in pursuance of an agreement (approved by Central government) between April 1, 1961, and March 31, 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

Tax Rates for Co-operative Society — AY 2017–18

Income Range (in Rupees)Tax Rate (in %age)
Zero–10,00010%
10,000–20,00020%
Above 20,00030%
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–2,50,000Nil2,50,000 x 0 = 0
2,50,000–5,00,00010%2,50,000 x 10% = 25,000
5,00,000–10,00,00020%5,00,000 x 20% = 1,00,000
Above 10,00,00030%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–2,50,000Nil2,50,000 x 0 = 0
2,50,000–5,00,0005%2,50,000 x 5% = 12,500
5,00,000–10,00,00020%5,00,000 x 20% = 1,00,000
Above 10,00,00030%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–2,50,000Nil2,50,000 x 0 = 0
2,50,000–5,00,0005%2,50,000 x 5% = 12,500
5,00,000–10,00,00020%5,00,000 x 20% = 1,00,000
Above 10,00,00030%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 ]

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 a similar way as EC and SHEC are calculated.

What is the Rate of HEC?

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

Knowing the income tax slabs applicable to you helps you in calculating your tax liability and paying your taxes correctly. Keep track of advance tax due dates to timely discharge your tax liabilities.

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Chetan Chandak (B.Com, LLB)
Chetan is the Head of Tax Research at H&R Block (India) with an experience of more than a decade in tax advising. He is also a regular contributor for some of the leading news publications in India such as Economic Times, Financial Express and Money Control. Professionally, Chetan is fascinated by international taxation and expat-related tax research.

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