India Tax
About Indian Taxation System
Income Tax Slab for Financial Year 2017-18 And Assessment year 2018-19
In case of an Individual (resident or non-resident) or Hindu Undivided Family or Association of Person or Body of Individual or any other artificial juridical person
Annual Income | Tax Rates | Education Cess | Secondary and Higher Education Cess |
---|---|---|---|
Up to Rs.2,50,000 | Nil | Nil | Nil |
Rs.2,50,001 - Rs.5,00,000 | 5% | 2% of income tax | 1% of income tax |
Rs.5,00,001 - Rs.10,00,000 | Rs.12,500 + 20% | 2% of income tax | 1% of income tax |
Above Rs.10,00,000 | Rs.1,12,500 + 30% | 2% of income tax | 1% of income tax |
In case of a resident senior citizen (who is 60 years or more but less than 80 years)
Annual Income | Tax Rates | Education Cess | Secondary and Higher Education Cess |
---|---|---|---|
Up to Rs.3,00,000 | Nil | Nil | Nil |
Rs.3,00,001 - Rs.5,00,000 | 5% | 2% of income tax | 1% of income tax |
Rs.5,00,001 - Rs.10,00,000 | Rs.10,000 + 20% | 2% of income tax | 1% of income tax |
Above Rs.10,00,000 | Rs.1,10,000 + 30% | 2% of income tax | 1% of income tax |
In case of a resident super senior citizen (who is 80 years or more)
Annual Income | Tax Rates | Education Cess | Secondary and Higher Education Cess |
---|---|---|---|
Up to Rs.5,00,000 | Nil | Nil | Nil |
Rs.5,00,001 - Rs.10,00,000 | 20% | 2% of income tax | 1% of income tax |
Above Rs.10,00,000 | Rs.1,00,000 + 30% | 2% of income tax | 1% of income tax |
TDS should be deducted at applicable rates as above along with surcharge and Education Cess.
Rebate under Section 87A
Surcharge : 10% of the Income Tax, where the taxable income is between Rs. 50 lakhs and Rs. 1 crore. However, the amount of Income Tax and Surcharge will not raise the amount of income tax that is payable on a taxable income of Rs. 50 lacs by more than the amount of increase in taxable income.
15% of the Income Tax, where taxable income is in excess of Rs. 1 crore. However, the amount of Income Tax and Surcharge will not raise the amount of income tax that is payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.
Types of Tax in India
There are different kinds of taxes, which are prevalent in the nation. The computation of those taxes varies from one tax to another, depending on the nature of a particular tax. Following are some of the major taxes in India:Capital Gains Tax
Payable on the capital gains that are received after the asset sales, this tax is a direct tax levied by the Central Government of India.Corporate Tax
Levied by the India Government, this type of direct tax involves the payment of tax by the companies based within the Indian Republic on their worldwide income.Service Tax
This tax is computed on some specific services, which are provided in the country. The tax is levied at 10 % rate with an additional education cess at the rate of 2 %.Custom Duty
Governed as per the Customs Act, 1962 as well as the Customs Tariff Act, 1975, the imported goods in this nation attract basic and additional custom duty.Excise Duty
According to 1944's Central Excise Act and 1985's Central Excise Tariff Act, this duty is levied on the manufacturing of goods.Personal Income Tax
This tax in the Indian Republic includes every kind of income, which is computed and levied by the Union Government. The income from agriculture is not levied or collected by the India Government though.Value Added Tax
Value Added Tax or V. A. T. has been implemented in most of the states in place of the Sales Tax from 1st April, 2005. Such a tax is levied while selling movable goods.Wealth Tax
Applicable on all the Indian citizens, this tax is levied as per the Wealth Tax Act, 1957.Apart from the ones mentioned above, there are many other taxes, names of some of which are as follows. Among them, some taxes are even solely levied by the State Governments or Local Bodies:
- Asset Transfer Tax or Stamp Duty
- Building Tax or Property Tax
- Dividend Tax
- Entry Tax or Octroi Tax
- Fringe Benefit Tax
- Fuel Tax
- Poll Tax
Last Updated on 11/16/2017
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