IndianTaxStudy.com
  • Knowledge Base
    • GST
    • Income Tax
    • Financial Management
    • Financial Reporting
    • Corporate Compliances
  • Search GST Tax Payer Details
  • Services Offered
    • GST/TDS/ITR – Efillings
    • GST Registration
    • Company Registration
  • Login
  • Register
No Result
View All Result
WhatsApp Support
IndianTaxStudy.com
  • Knowledge Base
    • GST
    • Income Tax
    • Financial Management
    • Financial Reporting
    • Corporate Compliances
  • Search GST Tax Payer Details
  • Services Offered
    • GST/TDS/ITR – Efillings
    • GST Registration
    • Company Registration
  • Login
  • Register
No Result
View All Result
WhatsApp Support
IndianTaxStudy.com
No Result
View All Result

Income Tax Rate for FY 2017-18 or AY 2018-19

Raj Kumar by Raj Kumar
4 years ago
in Business News, Income Tax
Reading Time: 9min read
A A
0

MorePosts

What taxes you shall pay for the FY 2019-20 under Income-tax Regime?

TDS on Payment to Contractor u/s 194C after the amendments by Finance Act 2020

Few reasons to move to cashless transaction under Income-tax Act, 1961

This is why you should always quote your PAN rightly for TDS deductions

Interest on Income Tax Refunds

Mandatory Linking of Aadhaar and Exemptions from Income Tax Department

How to calculate WDV Rates for Depreciation

TDS on Insurance Commission [Section 194D]

Load More

There are many changes in Tax rate. One of the biggest change is that now tax rate for slab of ₹ 2,50,000 – 5,00,000 is @ 5%. Earlier it was 10%. There is also a major change. Now those earning income of over ₹ 50 lakhs and less than ₹ 1 Crore will have to pay Surcharge @ 10%. There is also a relief for small companies. They will now have to pay tax @ 25% instead of 30% if their income is below ₹ 50 lakhs.

Tax rates are different for different individuals. Below are tax rates applicable for FY 2017-18 for different individuals.

For Individual / Hindu Undivided Family (HUF) / Association of Persons (AOP) / Body of Individuals (BOI) / Artificial Judicial Person
Where income is below ₹ 2,50,000/- Nil
Where income is between ₹ 2,50,000 – 5,00,000/- 5% of income that exceeds ₹ 2,50,000/-
Where total income is between ₹ 5,00,000 and ₹ 10,00,000/- ₹ 12,500 + 20% of income between ₹ 5,00,000 – 10,00,000/-
Where income exceeds ₹ 10,00,000/- ₹ 1,12,500 + 30% of income that exceeds ₹ 10,00,000
For Individuals who are residents and of 60 years or above, but less than 80 years
Where income is below ₹ 3,00,000/- Nil
Where income is between ₹ 3,00,000 – 5,00,000/- 5% of income that exceeds ₹ 3,00,000/-
Where total income is between ₹ 5,00,000 and ₹ 10,00,000/- ₹ 10,000 + 20% of income between ₹ 5,00,000 – 10,00,000/-
Where income exceeds ₹ 10,00,000/- ₹ 1,10,000 + 30% of income that exceeds ₹ 10,00,000
For Individuals who are residents and of 80 years or more
Where income is below ₹ 5,00,000/- Nil
Where total income is between ₹ 5,00,000 and ₹ 10,00,000/- 20% of income between ₹ 5,00,000 – 10,00,000/-
Where income exceeds ₹ 10,00,000/- ₹ 1,00,000 + 30% of income that exceeds ₹ 10,00,000
For Firms / LLP
On whole of Income 30%
Local Authority
On Whole of Income 30%
Co – operative Society
Where income doesn’t exceed ₹ 10,000/- 10% of total income
Where income exceeds ₹ 10,000 but not ₹ 20,000 ₹ 1,000 + 20% of income above ₹ 10,000/-
Where income exceeds ₹ 20,000 ₹ 3,000 + 30% of income above ₹ 30,000/-
For Companies
For Domestic Companies 30% of total income
For Foreign Companies 40% of total income

These are tax rates only. Final Tax is subject to other conditions. Some other special Tax rates are –

  • Long Term Capital Gain Tax, in general, is @ 20%.
  • Under Section 115BB, tax rate of 30% is applicable for income from winnings-
  1. Any lottery;
  2. Crossword puzzle;
  3. Race including Horse race;
  4. Card Game and any sort of other game;
  5. Gambling or betting of any form

There is also surcharge on high income. The rates of Surcharge for AY 2017-18 are-

For Individual / HUF / AOP / BOI / Artificial Judicial Person / Co – Operative Societies / Local Authorities / Firms / LLPs
Where income exceeds ₹ 50 Lakhs 10% of income tax computed by applying above rates
Where income exceeds ₹ 1 Crore 15% of income tax computed by applying above rates
Marginal Relief is available where income exceeds ₹ 1 Crore and Surcharge is Applicable. The amount of Surcharge should not be more than income that exceeds ₹ 1 Crore. There is a similar marginal relief for income above ₹ 50 lakhs if income doesn’t exceed the amount of tax payable as a surcharge of 10%.
Domestic Companies
Where income exceeds ₹ 1 Crore but not ₹ 10 Crores 7% of income tax computed by applying above rates.
Where income exceeds ₹ 10 Crores 12% of income tax computed by applying above rates.
Marginal Relief is available. Surcharge at 7% cannot exceed the income above ₹ 1 Crore. Similarly, Surcharge at 12% cannot exceed the income above ₹ 10 Crores.
Foreign Companies
Where income exceeds ₹ 1 Crore but not ₹ 10 Crores 2% of income tax computed by applying above rates
Where income exceeds ₹ 10 Crores 5% of income tax computed by applying above rates
Marginal Relief is available. Surcharge at 2% cannot exceed the income above ₹ 1 Crore. Similarly, Surcharge at 5% cannot exceed the income above ₹ 10 Crores.

There is a change in the amount of Rebate under section 87A. Unlike in FY 2016-17, this time Amount is reduced to ₹ 2,500. If the income of a person is below ₹ 5 lakh, he will get a rebate of ₹ 2,000 on his tax liability.

“Education Cess” @ 2% and “Secondary and Higher Education Cess” @ 1% is applicable on Taxes calculated by applying at above rates. This Cess are collected by the government to meet its commitment of providing finance to education.

An Example for calculating tax-

Illustration 1 – Mr. A who is resident in India has income of ₹ 4,50,000/- in FY 2016-17 i.e. AY 2017-18. His age is below 60 years. His Tax will be calculated as-

His Income = ₹ 4,50,000/-

Tax Slab of ₹ 2,50,000 – 5,00,000 is applicable @ 5%. Therefore, his basic tax = 5% of (4,50,000 – 2,50,000)

i.e., 10,000

Since, his income is below ₹ 5,00,000, he will get rebate of ₹ 2,500.

Therefore, his tax liability is of ₹ 10,000 – ₹ 2,500 = ₹ 7,500/-

Illustration 2 – Mr. A who is resident in India has income of ₹ 6,50,000/- in FY 2016-17 i.e. AY 2017-18. His age is below 60 years. His Tax will be calculated as-

His Income = ₹ 6,50,000/-

Tax Slab of ₹ 5,00,000 – 10,00,000 is applicable @ 25,000 + 20% for income above ₹ 5,00,000. Therefore, his basic tax = 12,500 + 20% of (6,50,000 – 5,00,000)

i.e., ₹ 42,500/-

Since, his income is above ₹ 5,00,000, he will not get rebate of ₹ 2,000.

Therefore, his tax liability is of ₹ 42,500/-

Hope this article was helpful to you. Don’t forget to like and share it.

Tags: income tax ratesTax slabs
Previous Post

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

Next Post

Taxation as per Residential Status in India

Raj Kumar

Raj Kumar

I love blogging and studying taxation. I write articles related to Tax laws and common issues in handling taxation in India. Often, common but small mistakes make things complicated. I write and share them to save precious time of others.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

Recent Articles

Compounding of Offences under GST Regime

What taxes you shall pay for the FY 2019-20 under Income-tax Regime?

TDS on Payment to Contractor u/s 194C after the amendments by Finance Act 2020

Value Added Statements – A way to Show Value added by organisation apart from Financials

Know how to calculate Treasury Bills, Bonds, etc. in Money Market Operations

Few reasons to move to cashless transaction under Income-tax Act, 1961

This is why you should always quote your PAN rightly for TDS deductions

Interest on Income Tax Refunds

IndianTaxStudy.com

© 2021 || Indiantaxstudy.com

Quick Links

  • Contact us
  • Privacy Policy
  • Terms & Conditions
  • Sitemaps

Follow Us

  • Login
  • Sign Up
No Result
View All Result
  • Knowledge Base
    • GST
    • Income Tax
    • Financial Management
    • Financial Reporting
    • Corporate Compliances
  • Search GST Tax Payer Details
  • Services Offered
    • GST/TDS/ITR – Efillings
    • GST Registration
    • Company Registration

© 2021 || Indiantaxstudy.com

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.