Income Tax Slabs in India for FY 2017-2018

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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


Partnership firms(including LLP) are taxable at 30% for the Assessment Year 2017-18 and 2018-19.
  1. Surcharge: Incomes exceeding one crore rupees are subjected to income-tax increased by surcharge at rate of 12% of such tax. However, a marginal relief is associated with the surcharge policy. For incomes exceeding one crore rupees, total income-tax payable with surcharge shall not exceed income-tax payable on income of one crore rupees by more than the income that exceeds one crore rupees.
  2. Education Cess: The income tax payable with applicable surcharge shall be increased by education cess. It shall be calculated as two percent of income tax and surcharge.
  3. Secondary and Higher Education Cess: Amount of income tax payable with applicable surcharge shall be increased by secondary and higher education cess. It shall be calculated as one percent of income tax and surcharge.

Local Authority


Local authorities are taxable at 30% for the Assessment Year 2017-18 and 2018-19
  1. Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where 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).
  2. Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.
  3. 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 per cent of such income-tax and surcharge.

Domestic Company


For the Assessment Year 2017-18 and 2018-19, a domestic company is taxable at 30%. For Assessment Year 2017-18, tax rate would be 29% where turnover or gross receipt of the company does not exceed Rs. 5 crore in the previous year 2014-15.However, for Assessment year 2018-19, 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.
  1. Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:
    1. For incomes exceeding one crore but not ten crore rupees, the amount payable as income-tax and surcharge shall not exceed amount payable as income-tax subjected on total income of one crore rupees by more than the income amount that exceeds one crore rupees.
    2. For incomes exceeding ten crore rupees, the total payable amount as income-tax and surcharge shall not exceed the amount payable as income-tax subjected on total income of ten crores rupees by more than the income amount that exceeds ten crore rupees.
  2. Education Cess: The income tax payable with applicable surcharge shall be further increased by education cess. It shall be calculated as two percent of income-tax and surcharge.
  3. Secondary and Higher Education Cess: Amount of income-tax payable with applicable surcharge shall be increased by secondary and higher education cess. It shall be calculated as one percent of income-tax and surcharge.

Foreign Company


Nature of IncomeTax Rates
Royalty received from Indian concern or Government in pursuance of an agreement made after March 31, 1961, but before April 1, 1976 with the Indian concern has been approved by the Central Government. Similarly, agreement made after February 29, 1964 but before April 1, 1976 for fees for rendering technical services has been approved. 50%
Any other income40%

  1. Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:
    1. 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. 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.
  2. Education Cess: The income tax payable with applicable surcharge shall be further increased by education cess. It shall be calculated as two percent of income-tax and surcharge.
  3. Secondary and Higher Education Cess: Amount of income-tax payable with applicable surcharge shall be increased by secondary and higher education cess. It shall be calculated as one percent of income-tax and surcharge.

Co-operative Society

Taxable incomeTax Rates
Up to Rs. 10,00010%
Rs. 10,000 to Rs. 20,00020%
Above Rs. 20,00030%
  1. Surcharge: Incomes exceeding one crore rupees, are subjected to income-tax increased by surcharge at rate of 12% of such tax. However, a marginal relief is associated with the surcharge policy. For incomes exceeding one crore rupees, total income-tax payable with surcharge shall not exceed income-tax payable on income of one crore rupees by more than the income that exceeds one crore rupees.
  2. Education Cess: The income tax payable with applicable surcharge shall be further increased by education cess. It shall be calculated as two percent of income-tax and surcharge.
  3. Secondary and Higher Education Cess: Amount of income-tax payable with applicable surcharge shall be increased by secondary and higher education cess. It shall be calculated as one percent of income-tax and surcharge.

Tax Exemptions

ExemptionsAmount
Surcharge Taxable income > Rs. 1 Crore Individuals, Senior Citizens, Very Senior Citizens, HUFs, AOPs, BOIs, artificial juridical persons, firms, cooperative societies and local authorities12% of Income Tax
Education3% of (Total income tax + surcharge)
Transport allowanceRs. 1,600/- per month
Section 80D: Deduction for Medical Insurance premiumRs. 25,000/-
Section 80D Deduction for Medical Insurance premium for Senior CitizensRs. 30,000/-
Investment in Sukanya Samriddhi SchemeEligible for deduction u/s 80C and any payment from the scheme shall not be liable to tax.
Section 80DDB Deduction in case of very senior citizens on expenditure on account of specified diseasesRs. 80,000/-
Section 80DD(dependent/family member) Medical treatment and maintenance of a dependent person with disabilityRs. 75,000/-
Section 80DD(dependent/family member) Medical treatment and maintenance of a dependent person with severe disabilityRs. 1,50,000/-
Section 80U(self) Person with disabilityRs. 75,000/-
Section 80U(self) Person with severe disabilityRs. 1,50,000/-
Section 80CCC Contribution to provident fund of LIC or IRDA approved insurerRs. 1,50,000/-
Section 80CCD Contribution by the employee to National Pension Scheme (NPS)Rs. 1,50,000/-


What is professional tax?

If you are a professional or a working individual of a reputed organization, then you are required to pay professional tax. Professional tax in India is a state-level duty.

In India, this tax is imposed by various states. It is imposed on business owners, working individuals, merchants and people carrying out various occupations. The following states impose this levy in India- Andhra Pradesh, Assam, Bihar, Chattisgarh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Mizoram, Orissa, Puducherry, Tamil Nadu, Tripura, Jharkhand, Punjab, West Bengal, Himachal Pradesh, Jammu & Kashmir, Nagaland, Sikkim, Rajasthan, Telangana. States where professional tax is not implemented are- Arunachal Pradesh, Delhi, Goa, Haryana, Uttar Pradesh, Uttaranchal, Andaman & Nicobar, Chandigarh, Daman & Diu, Dadra & Nagar Haveli, Lakshadeep

Professional tax is levied by particular Municipal Corporations and majority of the Indian states impose this duty. It is a source of revenue for the government. The maximum amount payable per year is Rs. 2,400/- and in line with your salary, there are predetermined slabs. It is paid by every member of staff employed in private companies. It is subtracted by the employer each month and sent to the Municipal Corporation. It is compulsory as income tax. You will be eligible for income tax deduction for this payment.

Criteria in various states of India

In Maharashtra, this duty is applicable both on individuals and companies as laid down by the guidelines of the Maharashtra Professional Tax Act of 1975.

Every individual living in Maharashtra, involved in any business, profession, occupation or employment is legally responsible to pay it and has to get a Certificate of Enrolment from the Professional Authority.

As soon as you receive this certificate, you can fulfill your personal tax liability for 5 years by making a one-time payment, which is equivalent to the sum of Professional Tax for 4 years beforehand, getting relief for payment of one year. In Tamil Nadu, it is imposed by the Municipal Council on businessmen, professionals, and employed individuals.

Every company which conducts business and every individual, who is involved directly in any business, occupation, or employment in the town panchayat on the first day of the half-year for which return has been submitted, needs to pay biannual tax at the rates stipulated.

Professional Tax Slabs in Various States


Andhra Pradesh

Salary Slabs per monthPayable Tax per month
Upto Rs. 5,000/-Nil
Rs. 5,000/- to Rs. 6,000/-Rs. 60/-
Rs. 6,000/- to Rs. 10,000/-Rs. 80/-
Rs. 10,000/- to Rs. 15,000/-Rs. 100/-
Rs. 15,000/- to Rs. 20,000/-Rs. 150/-
Rs. 20,000/- and aboveRs. 200/-


Assam

Salary Slabs per monthPayable Tax per month
Upto Rs. 3,500/-Nil
Rs. 3,501/- to Rs. 5,000/-Rs. 30/-
Rs. 5,001/- to Rs. 7,000/-Rs. 75/-
Rs. 7,001/- to Rs. 9,000/-Rs. 110/-
Rs. 9,001/- and aboveRs. 208/-


Chhattisgarh

Salary Slabs per monthPayable Tax per month
Upto Rs. 12,500/-Nil
Rs. 12,501/- to Rs. 16,667/-Rs. 150/-
Rs. 16,668/- to Rs. 20,833/-Rs. 180/-
Rs. 20,834/- to Rs. 25,000/-Rs. 190/-
Rs. 25,001/- & aboveRs. 200/-


Gujarat

Salary Slabs per monthPayable Tax per month
Upto Rs. 2,999Nil
Rs. 3,000/- to Rs. 5,999/-Rs. 20/-
Rs. 6,000/- to Rs. 8,999/-Rs. 80/-
Rs. 9,000/- to Rs. 11,999/-Rs. 150/-
Rs 12,000/- and aboveRs. 200/-


Karnataka

Salary Slabs per monthPayable Tax per month
Rs. 3,000/- to Rs. 5,000/-Rs. 30/-
Rs. 5,000/- to Rs. 8,000/-Rs. 60/-
Rs. 8,000/- to Rs. 10,000/-Rs. 100/-
Rs. 10,000/- to Rs. 15,000/-Rs. 150/-
Rs. 15,000/- and aboveRs. 200/-


Kerala

Salary Slabs per monthPayable Tax per month
Upto Rs. 1,999/-Nil
Rs. 2000/- to Rs. 2999/-Rs. 20/-
Rs. 3000/- to Rs. 4,999/-Rs. 30/-
Rs. 5,000/- to Rs. 7,499/-Rs. 50/-
Rs. 7,500/- to Rs. 9,999Rs. 75/-
Rs. 10,000/- to Rs. 12,499/-Rs. 100/-
Rs. 12,500/- to Rs. 16,666/-Rs. 125/-
Rs. 16,667/- to Rs. 20,833/-Rs. 166/-
Rs. 20,834/- and aboveRs. 208/-


Madhya Pradesh

Salary Slabs per monthPayable Tax per month
Upto Rs. 10,000/-Nil
Rs. 10,001/- to Rs. 12500/-Rs. 88/-**
Rs. 12,501/- to Rs. 15,000/-Rs. 125/-
Rs. 15,001/- & aboveRs. 208/- ##
** upto Feb. Rs. 88, March Rs. 87/- 
## upto Feb Rs. 208/-, March Rs. 212/-


Maharashtra

Salary Slabs per monthPayable Tax per month
Upto Rs. 2,500/-Nil
Rs. 2,500/- to Rs. 3,500/-Rs. 60/-
Rs. 3,500/- to Rs. 5,000/-Rs. 120/-
Rs. 5,000/- to Rs. 10,000/-Rs. 175/-
Rs. 10,000/- and aboveRs. 200/-**
*upto Feb Rs. 200/- p.m. & Mar Rs. 300/- p.m.


Meghalaya

Salary Slabs per monthPayable Tax per month
Upto Rs. 4,166/-Nil
Rs. 4,167/- to Rs. 6,250/-Rs. 16.50/-
Rs. 6,251/- to Rs. 8,333/-Rs. 25/-
Rs. 8,334/- to Rs. 12,500/-Rs. 41.50/-
Rs 12,501./- to Rs. -16,666Rs. 62.50/-
Rs. 16,667/- to Rs. 20,833/-Rs. 33/-
Rs. 20,834/- to Rs. 25,000/-Rs. 35/-
Rs. 25,001/- and aboveRs. 38/-


Orissa

Salary Slabs per monthPayable Tax per month
Upto Rs. 5000/-Nil
Rs. 5,001/- to Rs. 6,000/-Rs. 30/-
Rs. 6,001/- to Rs. 8,000/-Rs. 50/-
Rs. 8,001/-to Rs. 10,000/-Rs. 75/-
Rs. 10,001/- to Rs. 15,000/-Rs. 100/-
Rs. 15,001/- to Rs. 20,000/-Rs. 150/-
Rs. 20,001/- & aboveRs. 200/-


Tamil Nadu

Salary Slabs per monthPayable Tax per month
Upto Rs. 3,500/-Nil
Rs. 3501/- to Rs. 5000/-Rs. 16.50/-
Rs. 5001/- to Rs. 7500/-Rs. 39/-
Rs. 7501/- to Rs. 10000/-Rs. 85/-
Rs. 10001/- to Rs. 12500/-Rs. 126.50/-
Rs. 12501/- & aboveRs. 182.50/-


Tripura

Salary Slabs per monthPayable Tax per month
Upto Rs. 2500/-Nil
Rs. 2501/- to Rs. 3500/-Rs. 55/-
Rs. 3501/- to Rs. 4500/-Rs. 85/-
Rs. 4501/- to Rs. 6500/-Rs. 100/-
Rs. 6501/- to Rs. 10000/-Rs. 140/-
Rs. 10001/- and aboveRs. 180/-


West Bengal

Salary Slabs per monthPayable Tax per month
Upto Rs. 5,000/-Nil
Rs. 5,001/- to Rs. 6,000/-Rs. 40/-
Rs. 6,001/- to Rs. 7,000/-Rs. 45/-
Rs. 7,001/- to Rs. 8,000/-Rs. 50/-
Rs. 8,001/- to Rs. 9,000/-Rs. 90/-
Rs. 9,001/- to Rs. 15,000/-Rs. 110/-
Rs. 15,001/- to Rs. 25,000/-Rs. 130/-
Rs. 25,001/- to Rs. 40,000/-Rs. 150/-
Rs. 40,001/- and aboveRs. 200/-


In New Delhi

IncomeTax to be imposed
Upto Rs. 1,10,000Nil
From Rs. 1,10,000 To Rs. 1,45,000Nil
From Rs. 1,45,000 To Rs. 1,50,00010.00%
From Rs. 1,50,000 To Rs. 1,95,00020.00%
From Rs. 1,95,000 To Rs. 2,50,00020.00%
More than Rs. 2,50,00030.00%


Last Updated on November 22, 2017

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