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 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.
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 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 | 50.00% |
| Any other income | 40.00% |
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 income | Tax Rate |
|---|
| Up to Rs. 10,000 | 10.00% |
| Rs. 10,000 to Rs. 20,000 | 20.00% |
| Above Rs. 20,000 | 30.00% |
