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.