The Union budget for the year 2017-18 witnessed several changes regarding the income tax slab. However, there are no major changes in the budget for the current financial year, 2018-19, that have been discussed in detail in this article.
What are the Income Tax Slabs for AY 2017-18 and AY 2018-19?
There are two income tax slab rates for different taxpayer categories. The two major categories include individuals and HUFs, and businesses.
The sub-categories under the category Individuals and HUFS include:
- Male and female individuals below 60 years of age
- Senior citizens above 60 years of age
- Super senior citizens above 60 years of age
The sub-categories under the category businesses include:
- Co-operative society
- Firms and local authority
- Domestic company
What are the Income Tax Rates for Individuals and HUFs?
For the financial year 2017-18, SHEC levies 1 percent and education cess of 2 percent. Applicants should take note that a rebate under Section 87A can be availed for low income. The amount of rebate has been slashed from Rs 5000 to Rs 2500 per annum in the 2017 Budget.
Also, the rebate can be availed only by Indian residents with an income of less than 3.5 lakh per year.
What is the Tax slab for Male and Females below 60 years and HUFs?
The income tax slabs for individuals below 60 years and HUFs based on income is as follows:
- Income of not more than Rs 2.5 lakh tax payable is 0
- Income between 2.5 and 5 lakh tax payable is 5% of amount that exceeds 2.5 lakh
- Income between 5 and 10 lakh tax payable is 20% of amount that exceeds 5 lakh
- Income more than 10 lakh tax payable is 30% of amount that exceeds 10 lakh
The income tax slabs for senior citizens above 60 years and below 80 years based on income is as follows:
- Income of up to Rs 3 lakh tax payable is 0
- Income between 3 and 5 lakh tax payable is 5% of amount that exceeds 3 lakh
- Income between 5 and 10 lakh tax payable is 20% of amount that exceeds 5 lakh
- Income more than 10 lakh tax payable is 30% of amount that exceeds 10 lakh
The income tax slabs for senior citizens above 80 years based on income is as follows:
- Income of up to Rs 5 lakh tax payable is 0
- Income between 5 and 10 lakh tax payable is 20% of amount that exceeds 5 lakh
- Income more than 10 lakh tax payable is 30% of amount that exceeds 10 lakh
What is the Surcharge for Income Above 50 Lakh?
In cases where the income of individuals and HUFs are above 50 lakhs then a surcharge is applicable. The income tax slab for the surcharge levied is as follows:
- Income below 50 lakh surcharge payable is 0
- Income between 50 lakhs but less than 1 crore surcharge payable is 10%
- Income more than 1 crore surcharge payable is 15%
Applicants must note that the surcharge is based not on income but on the computed income tax amount. Once tax payable is computed the income tax slab, balance income tax post deductions, and reflected on 26AS are payable though advance tax installments.
What is the Co-operative Societies Tax Slab?
The income tax slabs for co-operative societies are as follows:
- Income of not more than Rs 10,000 lakh tax payable is 10% of the income
- Income between Rs 10,000 and Rs 20,000 tax payable is 20% of amount that exceeds 10,000
- Income exceeds Rs 20,000 tax payable is 30% of amount that exceeds 20,000
What is the Tax slab for Local Authority and Firms?
Income tax is not applicable but a flat 30% will be computed based on the total income generated. Note that a surcharge is levied.
The surcharge is levied on firms and local authorities are as follows:
- Income less than 1 crore so surcharge is levied
- Income above 1 crore a surcharge of 12% is levied
However, when the income is less than 1 crore then income tax is not applicable.
What is the Income Tax slab for Domestic Companies?
Income tax charged for domestic companies is 25% of the turnover when the total income is less than Rs 250 crores and 30% when the turnover is above Rs 250 crores. However, these rates are the latest rates for AY 2018-19.
The surcharge is levied on domestic companies for AY 2017-18 as follows:
- Income less than 1 crore no surcharge is levied
- Income between above 1 crore and below 10 crores a surcharge of 7% is levied
- Income above 10 crores a surcharge of 12% is levied
How Much Education Cess and SHEC is Applicable on Different Income Tax Slab?
For all categories of income tax players 2% of education cess while for secondary and higher education, cess charges 1% on the total tax applicable for the current financial year.
Some of the charges in the income tax slab for AY 2017-18 have been discussed at length and hopefully, it helps you while filing income tax this year.
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