Latest Income Tax Slabs and Rates For FY 2016-17 And AY 2017-18

The new income tax slabs for the fiscal year 2017-18 has been announced and will continue to have variations as per the category and profile of the taxpayer or the tax-paying entity.

Major changes in the income tax payment for small companies have been announced. Their tax has been reduced to 25% from the previous 30% for companies with an annual turnover of Rs. 50 Crore. Check refund status and file your income tax return online. Individuals earning less than Rs. 5 Lakhs annually will now have to file only a one-page IT returns form. All surcharge inflicted are subject to peripheral relief.

Income Tax Slab Rates for Income Tax Slab FY 2016-17 and Income Tax Slab for AY 2017-18

Individual Tax Payers and Hindu Undivided Families

  • Unit surcharge is 12% if the income is more than Rs. 1,00,00,000
  • Education cess is extra 2% charged on income tax and surcharge
  • Secondary cess and higher education cess is extra 1% charged on income tax and surcharge
  • Under Section 87A, a total income of less than Rs. 5,00,000 can claim a 100% of income tax refund or Rs. 2,000, whichever is lesser.
  • Use the income tax India calculator available to know your exact IT
IT Slab Tax Rate
Up to Rs. 2,50,000 No Tax
Rs. 2,50,000-Rs. 5,00,000 10%
Rs. 5,00,000-Rs. 10,00,000 20%
Income over Rs. 10,00,000 30%

 

Registered Entities

  • legal Registered Associations
  • Legal Registered Bodies of Individuals
  • Registered Artificial Judicial Persons
  • Mandatory Tax:
    • Unit surcharge is 12% if the income is more than Rs. 1,00,00,000
    • Education cess is extra 2% charged on income tax and surcharge
    • Secondary cess and higher education cess is extra 1% charged on income tax and surcharge
  • Under Section 87A, a total income of less than Rs. 5,00,000 can claim a 100% of the income tax rebate or Rs. 2,000, whichever is lesser.
IT Slab Tax Rate
Up to Rs. 2,50,000 No Tax
Rs. 2,50,000-Rs. 5,00,000 10%
Rs. 5,00,000-Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

 

Resident Senior Citizens

  • Above 60 years of age, but under 80 years of age as on last day of the year before
  • Above 80 years of age as on the last day of the year before
  • Mandatory Tax:
    • Unit surcharge is 12% if the income is more than Rs. 1,00,00,000
    • Education cess is extra 2% charged on income tax and surcharge
    • Secondary cess and higher education cess is extra 1% charged on income tax and surcharge
  • Under Section 87A, a total income of less than Rs. 5,00,000 can claim a 100% of the income tax rebate or Rs. 2,000, whichever is lesser.
IT Slab Tax Rate
Up to Rs. 2,50,000 No Tax
Rs. 2,50,000-Rs. 5,00,000 10%
Rs. 5,00,000-Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

 

Partnership Companies

Income tax slab for AY 2017-18 for limited liability partnerships and other partnership companies will be taxed at the rate of 30%

  • Mandatory Tax:
    • Unit surcharge is 12% if the income is more than Rs. 1,00,00,000
    • Education cess is extra 2% charged on income tax and surcharge
    • Secondary cess and higher education cess is extra 1% charged on income tax and surcharge
  • Under Section 87A, a total income of less than Rs. 5,00,000 can claim a 100% of the income tax rebate or Rs. 2,000, whichever is lesser.

Local Authorities and Domestic Companies

Local Authorities will be taxed at the rate of 30%.

  • Mandatory Tax:
    • Unit surcharge is 12% if the income is more than Rs. 1,00,00,000
    • Education cess is extra 2% charged on income tax and surcharge
    • Secondary cess and higher education cess is extra 1% charged on income tax and surcharge
  • Under Section 87A, a total income of less than Rs. 5,00,000 can claim a 100% of the income tax rebate or Rs. 2,000, whichever is lesser.

Overseas Companies

  • Mandatory Tax:
    • Unit surcharge is 2% if the income is more than Rs.1,00,00,000 and 5% if the income exceeds Rs.10,00,00,000
    • Education cess is extra 2% charged on income tax and surcharge
    • Secondary cess and higher education cess is extra 1% charged on income tax and surcharge
  • Under Section 87A, a total income of less than Rs. 5,00,000 can claim a 100% of the income tax rebate or Rs. 2,000, whichever is lesser.
Nature of the Company Taxable Income
Income through royalties paid by the Government of India in association with Indian concerns following 31st of March 1961 and before 1st of April 1976 50%
Income in the form of a fee for any services rendered technical or otherwise in association with Indian concerns following 29th February 1964 and before 1st April 1976 50%
Any other source of income 40%

 

Co-operative Societies

  • Mandatory Tax:
    • Unit surcharge is 12% if the income is more than Rs. 1,00,00,000
    • Education cess is extra 2% charged on income tax and surcharge
    • Secondary cess and higher education cess is extra 1% charged on income tax and surcharge
IT Slab Tax Rate
Up to Rs. 10,000 10%
Rs. 10,000-Rs. 20,000 20%
Above Rs. 20,000 30%

Under Section 87A, a total income of less than Rs. 5,00,000 can claim a 100% of tax rebate from the income tax slab or Rs. 2,000, whichever is lesser.

 

Posted in: Personal Finances

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