The income tax slab rates are reviewed by the Central government and Income Tax department annually. So tax slab rates are vary from year to year. These rates should be known to all tax payers before they are going to pay their taxes.
In this article, i hope you will get some idea over income tax slab rates and its importance to calculate your tax
What is Income Tax Slab?
Income tax is that percentage of income paid to the government by the taxpayers for the betterment of the public at large. This income is categorized into different groups on the basis of the amount of income. Each such group is known as a Tax Slab. Tax is charged at different rates on the range of income falling under different income tax slabs. The Income Tax Act 1961 is the law that governs the provisions for our income tax in India.
The income tax slab rates are usually revised every year during the budget. Various deductions that are allowed to a taxpayer under Section 80C, Section 80D etc.
An Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person :
| Tax rate (Assessment Year) | |||
| 2016-17 | 2017-18 | 2018-19 | |
| Up to Rs.2,50,000 | NIL | NIL | NIL |
| Above Rs.2,50,000 and up to Rs.5,00,000 | 10% | 10% | 5% |
| Above Rs.5,00,000 and up to Rs.10,00,000 | 20% | 20% | 20% |
| Above Rs.10,00,000 | 30% | 30% | 30% |
A resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)
A resident super senior citizen (who is 80 years or more at any time during the previous year)
Add Surcharge, Education Cess and Less Rebate:
For AY 2018-19:
Surcharge:
10% of tax will be imposed as surcharge in case the total income is between Rs.50 Lakhs and Rs.1 crore.
15% of tax will be imposed as surcharge in case the total income is above Rs.1 crore.
Education cess: 2% of tax plus surcharge
Secondary and Higher Education Cess: one per cent of such income-tax and surcharge.
Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 5,000, whichever is less.
For AY 2017-18:
Surcharge: 15% of tax where total income exceeds Rs. 1 crore
Education cess: 2% of tax plus surcharge
Secondary and Higher Education Cess: one per cent of such income-tax and surcharge.
Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 3,50,000. The amount of rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.
For AY 2016-17
Surcharge : 12% of the Income Tax, where taxable income is more than ₹ 1 crore. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the total of Income Tax and Surcharge.
Income tax Slab rates for Non-Individuals (Partnership firm, companies, societies etc):
Note: For Co-operative Society: Upto 10,000 - 10%, Above 10,000 and below 20,000 - 20% and Above 20,000 - 30%
Surcharge and Educationcess for Above Non-Individual Assesse:
Note: For 2016-17 and 2017-18, Domestic company 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
For 2018-19, Domestic company 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.
Income Tax Return Due Date:
Generally, the due date for filing Income Tax Return (ITR) for indu Undivided Family (HUF)/ Individuals/ AOP (Association of Persons)/ BOI (Body of Individuals) is 31st July of the next Financial Year. For example – The ITR due date for Financial Year 2016-17 would be 31st July, 2017.
But IT department has fixed 31st march 2018 is the last date to fill your income tax return for the AY 2016-17, AY 2017-18.
I hope, this information is useful for you to file your income tax returns with correct slab rates (without excess tax payment or refund).
Please share your suggestions or queries in comments below.
Hello, welcome to my blog, Smart Investor. I'm Satyanarayana, a banker & blogger, Investor from Visakha -patnam, India. You can read more about SML here.
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