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Income Tax Rates applicable for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI) in India is as under:
Assessment Year 2018-19, Relevant to Financial Year 2017-18
For Individuals below 60 years age (including Woman Assessees):
|
Income
|
Tax Rate
|
|
Upto 250,000
|
Nil
|
|
250,000 to 500,000
|
5% of the amount exceeding 250,000
|
|
500,000 to 1,000,000
|
Rs.12,500 + 20% of the amount exceeding 500,000
|
|
1,000,000 & above
|
Rs.112,500 + 30% of the amount exceeding 1,000,000
|
For Individuals aged 60 years and above but below 80 years (Senior Citizen):
|
Income
|
Tax Rate
|
|
Upto 300,000
|
Nil
|
|
300,000 to 500,000
|
5% of the amount exceeding 300,000
|
|
500,000 to 1,000,000
|
Rs.10,000 + 20% of the amount exceeding 500,000
|
|
1,000,000 & above
|
Rs.110,000 + 30% of the amount exceeding 1,000,000
|
For Individuals aged 80 years and above (Very Senior Citizen):
|
Income
|
Tax Rate
|
|
Upto 500,000
|
Nil
|
|
500,000 to 1,000,000
|
20% of the amount exceeding 500,000
|
|
1,000,000 & above
|
Rs.100,000 + 30% of the amount exceeding 1,000,000
|
Surcharge on Income Tax:
- 10% of Income Tax, where total income exceeds Rs.50 lakhs upto Rs.1 crore.
- 15% of the Income Tax, where total taxable income exceeds Rs.1 crore.
- Surcharge amount of 10% or 15% as applicable, shall not exceed the amount of income that exceeds Rs. 50 lakhs or Rs. 1 crore, as applicable.
Education Cess: 3% of Income Tax plus Surcharge
Tax Credit: Section 87A provides for rebate from tax liability. Tax credit of Rs. 2,500 is allowed for person whose income doesn’t exceed Rs. 350,000. If the total tax payable is less than Rs. 2,500; rebate is restricted to total tax payable.
Budget 2017: Changes in Personal Income Tax Rates
- Change in Income tax rate from 10% to 5% for income between Rs. 250,000 and Rs. 500,000 (in the case of Individual below 60 years) and for income between Rs. 300,000 and Rs. 500,000 (in the case of Individual between 60 years and 80 years).
- Introduction of new slab for Income tax surcharge @ 10% for Income between Rs 50 lakhs and Rs. 1 crore, in addition to the existing surcharge @ 15% for Income exceeding Rs. 1 crore.
- Tax rebate u/s 87A reduced from Rs. 5,000 for income upto Rs. 500,000 to Rs. 2,500 for income upto Rs. 350,000
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