Income Tax Rates in India for FY 2017-2018

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Income Tax Rate is the vital part of the income tax as charged by the Indian government on taxable incomes of the individuals, companies, co-operative societies, firms, trusts and any other artificial person.

The income tax, which is calculated on the basis of India income tax rate, is levied on each of the individual person and is governed by the Indian Income Tax Act. 1961. It is the Ministry of Finance along with the Government of India, which determines the India income tax rate.

New Income Tax Rates

Individuals and Body of Individual or Association of person

The new India Income Tax Rates announced by Finance Minister of India for individuals and Body of Individual or Association of person while presenting the Union Budget 2015-16 in the parliament are listed below:

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 IncomeTax RatesEducation CessSecondary and Higher Education Cess
Up to Rs.2,50,000NilNilNil
Rs.2,50,001 - Rs.5,00,0005%2% of income tax1% of income tax
Rs.5,00,001 - Rs.10,00,000Rs.12,500 + 20%2% of income tax1% of income tax
Above Rs.10,00,000Rs.1,12,500 + 30%2% of income tax1% of income tax


In case of a resident senior citizen (who is 60 years or more but less than 80 years)

Annual IncomeTax RatesEducation CessSecondary and Higher Education Cess
Up to Rs.3,00,000NilNilNil
Rs.3,00,001 - Rs.5,00,0005%2% of income tax1% of income tax
Rs.5,00,001 - Rs.10,00,000Rs.10,000 + 20%2% of income tax1% of income tax
Above Rs.10,00,000Rs.1,10,000 + 30%2% of income tax1% of income tax

In case of a resident super senior citizen (who is 80 years or more)

Annual IncomeTax RatesEducation CessSecondary and Higher Education Cess
Up to Rs.5,00,000NilNilNil
Rs.5,00,001 - Rs.10,00,00020%2% of income tax1% of income tax
Above Rs.10,00,000Rs.1,00,000 + 30%2% of income tax1% 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.

Partnership Firm

30% tax is levied on partnership firms for financial year 2015-16

Local Authority

For the assessment year 2015-16, a local authority is taxable at 30%.

Domestic Company

For the assessment Year 2015-16, a domestic company is taxable at 30%.

Foreign Company

Nature of IncomeTax 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 Government50.00%
Any other income40.00%


Cooperative Society

The new India Income Tax Rates announced by Finance Minister of India for Co-operative Society while presenting the Union Budget 2015-16 in the parliament are listed below :

Taxable incomeTax Rate
Up to Rs. 10,00010.00%
Rs. 10,000 to Rs. 20,00020.00%
Above Rs. 20,00030.00%


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