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Tax Rates for the A.Y 2018-17/ F.Y 2017-18

Tax Rates for the A.Y 2018-19/ F.Y 2017-18

Individual/ HUF/ Association of Person/ Body of Individual/ another artificial juridical person

In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person

Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Less: Rebate under Section 87A

The rebate is available to a resident individual if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less

Add Surcharge and Education Cess

a)  Surcharge:

  i)   Surcharge at the rate of 10% of such tax is applicable, where the total income exceeds fifty lakh rupees but does not exceed one crore rupees, However, the surcharge shall be subject to marginal relief

Marginal Relief – where income exceeds fifty lakh rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees.

 ii) Surcharge at the rate of 15% of such tax is applicable, where the total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief

Marginal Relief – where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

 b)  Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two percent of such income-tax and surcharge.

 c)  Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one percent of such income-tax and surcharge.

In case of a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)

Taxable income Tax Rate
Up to Rs. 3,00,000 Nil
Rs. 3,00,000 – Rs. 5,00,000 5%
Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Less: Rebate under Section 87A [click here]

Add: Surcharge and Education Cess [click here]

In case of a resident super senior citizen (who is 80 years or more at any time during the previous year)

Taxable income Tax Rate
Up to Rs. 5,00,000 Nil
Rs. 5,00,000 – Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

Add: Surcharge and Education Cess [click here]

Partnership Firm (including LLP), Local Authority

A partnership firm (including LLP), Local Authority is taxable at the flat rate of 30%

Add:

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where the total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief

Marginal Relief: Where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two percent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one percent of such income-tax and surcharge.

Domestic Company

 A domestic company is taxable at 30%. However, the tax rate would be 25% where turnover or gross receipt of the company does not exceed Rs. 50 crore in the previous year 2015-16.

Add:

 a)  Surcharge:

1. The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where the total income exceeds one crore rupees but not exceed ten crore rupees, However, the surcharge shall be subject to marginal relief, which shall be as under:

Marginal Relief: Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

2. The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where the total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under: 

Marginal Relief: Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

 b)  Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two percent of such income-tax and surcharge.

 c)  Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one percent of such income-tax and surcharge.

Foreign Company

Nature of Income Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government 50%
Any other income 40%

a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where the total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where the total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

 (i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

 (ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two percent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one percent of such income-tax and surcharge.

Co-operative Society

Taxable income Tax Rate
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%

Add:

 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where the total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two percent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one percent of such income-tax and surcharge.

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