Income Tax Rate Chart / Income Tax Slabs as Applicable for Assessment Year 2017-18 / Financial Year 2016-17 for Individual, HUF, AOP, BOI, Partnership Firms, LLP and Companies.

Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” and charging of income-tax in special cases during the financial year 2016-2017.

The rates for deduction of income-tax at source from “Salaries” during the financial year 2016-2017 and also for computation of “advance tax” payable during the said year in the case of all categories of assessees have been specified in Part III of the First Schedule to the Bill. These rates are also applicable for charging income-tax during the financial year 2016-2017 on current incomes in cases where accelerated assessments have to be made, for instance, provisional assessment of shipping profits arising in India to non-residents, assessment of persons leaving India for good during the financial year, assessment of persons who are likely to transfer property to avoid tax, assessment of bodies formed for a short duration, etc.

The salient features of the rates specified in the said Part III are indicated in the following paragraphs‑

income tax slab 2017-181. Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person.

Paragraph A of Part-III of First Schedule to the Bill provides following rates of income-tax:-

(i)  The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below) or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act (not being a case to which any other Paragraph of Part III applies) are as under:-

Income Tax Slabs for Individual below the age of 60 years, HUF, AOP, BOI , artificial juridical person

Income Slabs Tax Rates
i. Where the total income does not exceed Rs. 2,50,000/-. NIL
ii. Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 10% of amount by which the total income exceeds Rs. 2,50,000/-
iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv. Where the total income exceeds Rs. 10,00,000/-. Rs. 1,25,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Income Tax Slabs for Senior Citizens ( 60 years or more but less than 80 years) 

Income Slabs Tax Rates
i. Where the total income does not exceed Rs. 3,00,000/-. NIL
ii. Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/- 10% of the amount by which the total income exceeds Rs. 3,00,000/
iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 20,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv. Where the total income exceeds Rs. 10,00,000/- Rs. 120,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Income Tax Slabs for Super Senior Citizens ( age eighty years or more)

Income Slabs Tax Rates
i. Where the total income does not exceed Rs. 5,00,000/-. NIL
ii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iii. Where the total income exceeds Rs. 10,00,000/- Rs. 100,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge at the rate of fifteen percent. of such income-tax in case of a person having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

2. Co-operative Societies

In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part III of the First Schedule to the Bill. These rates will continue to be the same as those specified for financial year 2015-16.

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent. of such income-tax in case of a co-operative society having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

3. Income Tax Slabs for FY 2016-17 / AY 2017-18 for Firms

In the case of firms, the rate of income-tax has been specified in Paragraph C of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for financial year 2015-16.

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent. of such income-tax in case of a firm having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

4. Income Tax Slabs for FY 2016-17 / AY 2017-18 for Local authorities

The rate of income-tax in the case of every local authority is specified in Paragraph D of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for the financial year 2015-16.

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent. of such income-tax in case of a local authority having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

5. Income Tax Slabs for FY 2016-17 / AY 2017-18 for Companies

The rates of income-tax in the case of companies are specified in Paragraph E of Part III of the First Schedule to the Bill. In case of domestic company, the rate of Income-tax shall be twenty nine per cent. of the total income if the total turnover or gross receipts of the company in the previous year 2014-15 does not exceed five crore rupees and in all other cases the rate of Income-tax shall be thirty per cent. of the total income.

In order to provide relief to newly setup domestic companies engaged solely in the business of manufacture or production of article or thing, it is proposed to amend the Act by way of insertion of new section 115BA, to provide that the income-tax payable in respect of the total income of a domestic company for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2017 shall be computed @ 25% at the option of the company, if, –

  • the company has been setup and registered on or after 1st day of March, 2016;
  • the company is engaged in the business of manufacture or production of any article or thing and is not engaged in any other business;
  • the company while computing its total income has not claimed any benefit under section 10AA, benefit of accelerated depreciation, benefit of additional depreciation, investment allowance, expenditure on scientific research and any deduction in respect of certain income under Part-C of Chapter-VI-A other than the provisions of section 80JJAA; and
  • the option is furnished in the prescribed manner before the due date of furnishing of income.

In the case of a company other than a domestic company, the rates of tax are the same as those specified for the financial year 2015-16.

Surcharge at the rate of seven per cent shall be levied in case of a domestic company if the total income of the domestic company exceeds one crore rupees but does not exceed ten crore rupees. Surcharge at the rate of twelve percent shall be levied if the total income of the domestic company exceeds ten crore rupees. In case of companies other than domestic companies, the existing surcharge of two per cent. shall continue to be levied if the total income exceeds one crore rupees but does not exceed ten crore rupees. Surcharge at the rate of five percent shall continue to be levied if the total income of the company other than domestic company exceeds ten crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, shall not exceed the total amount payable as income-tax on a total income of one crore rupees, by more than the amount of income that exceeds one crore rupees. The total amount payable as income-tax and surcharge on total income exceeding ten crore rupees, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees, by more than the amount of income that exceeds ten crore rupees.

In other cases (including sections 115-O, 115QA, 115R, 115TA or 115TD), the surcharge shall be levied at the rate of twelve percent.

For financial year 2016-2017, additional surcharge called the “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such Cesses.

[Clause 2, 49 & First Schedule]

Clause 49 of Finance Bill 2016

Clause 49 of the Bill seeks to insert a new section 115BA in the Income-tax Act relating to tax on income of certain domestic companies.

Sub-section (1) of the proposed new section provides that the income-tax payable in respect of the total income of a person being

domestic company, for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2017 shall, at the option of such person, be computed at the rate of twenty-five per cent., if the conditions contained in sub-section (2) of the said section are satisfied.

Sub-section (2) of the proposed new section provides that the conditions referred to in sub-section (1) are the following, namely:–

(a)    the company has been set up and registered on or after the 1st day of March, 2016;

(b)  the company is engaged in the business of manufacturing or production of any article or thing; and

(c) the total income of the company has been computed, –

(i)  without any deduction under the provisions of section 1 0AA or clause (iia) of sub-section (1) of section 32 or section 32AC or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub­section (1) or sub-section (2AA) or sub-section (2AB) of section 35 or section 35AC or section 35AD or section 35CCC or section 35CCD or under any provisions of Chapter VI-A under the heading “C.– Deductions in respect of certain incomes” other than the provisions of section 80JJAA;

(ii)   without set off of any loss carried forward from any earlier assessment year if such loss is attributable to any of the deductions referred to in sub-clause (i); and

(iii) depreciation under section 32, other than clause (iia) of sub-section (1) of the said section is determined in the manner as may be prescribed.

Sub-section (3) of the proposed new section provides that the loss referred to in sub-clause (ii) of clause (c) of sub-section (2) shall be deemed to have been already given full effect to and no further deduction for such loss shall be allowed for any subsequent year.

Sub-section (4) of the proposed new section provides that the option by the person referred to in sub-section (1) shall be exercised in the prescribed manner on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for the relevant previous year.

These amendments will take effect from 1st April, 2017 and will, accordingly, apply in relation the assessment year 2017-2018 and subsequent years.

 ALSO READ
S.NO. INCOME TAX SLAB
INCOME TAX CALCULATORS
1. Income Tax Slabs for FY 2016-17 / AY 2017-18
2. Income Tax Slab for FY 2015-16 AY 2016-17
3. Income Tax Slab for FY 2014-15 AY 2015-16
4.
5.  Income tax Slab for FY 2012-13 / AY 2013-14 Income Tax Calculator FY 2012-13 / AY 2013-14
6. Income tax calculator for FY 2006-07 to FY 2016-17
7. Income Tax Slab Rates from AY 1992-93 to AY 2015-16

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22 responses to “Income Tax Slabs for FY 2016-17 / AY 2017-18”

  1. deepak dhingra says:

    what are the tax slab for super citizens having age>80 years for fy 2016-17

  2. Ganesh Shinde says:

    I retired from services in Sept 2016.
    My Income from salary including retirement benefits from April 16 to Sept 16 is Rs, 1320000/-
    My employer has deducted the applicable tax on Rs,1320000/- in Sept 16.
    Further I have received a pension of Rs.210000/- for the period from Oct 16 to March 17.
    Now please advise me as to whether I will have to pay tax on my pension income from Oct 16 to March 17 ?
    beceause my consultant says that It is not necessary to pay tax on Rs.210000/- as it is below tax liability amount.

  3. s k Mustafi says:

    My query is same as srl no 9 & 10 above.

  4. Brij Mohan says:

    I am an employee of bro and having 12percent put disability. Also about Rs 1.00 lag expended in my old age parents. How can get proper exumtion

  5. Sakti says:

    I need Income Tax slabs for Salaried individuals for Assessment year 2018-19

  6. N SELVAKUMAR says:

    My son is MR child, how i can get tax rebate. I obtained medical board for assesed his disability of 60%.

  7. D. RAVI says:

    what is the Dividend Distribution Tax for F.Y. 2016-17 for Individual – Senior Citizen

  8. santhi says:

    how i know effective dates of amendments of income tax in budget 2017-18

  9. Purnachandra Palei says:

    Sir,
    My Annual Income is Six Lakhs Sixty Six Thousand One Hundred Fourty. Whether i Shall get the rebate under 87A after deduction of savings 1.5 Lakhs and standred deduction 2.5lakhs.

  10. Rajeshkuamr says:

    whether reimbursment of cost of news paper is exempted from income tax for salaried person

  11. JAMUNA says:

    Sir,

    I am in lease house for 2 years 8 lakhs paid. How can I show in Income TAx? How can I show HRA Exemption? Please suggest me.

  12. V.SEETHA RAMA MURTHY says:

    FOR AY:2017-18 (FY:2016-17), UNDER TAX CALCULATOR IN E filing portal, the tax exempted limit (basic limit) is taken as Rs.350000/- for Senior Citizen. But in Tax slabs, the basic exempted limit for Senior citizen is Rs.300000/-.The same thing was pointed by Arvind patil as first query in this blog on 22.12.16. But no reply is furnished. Pl.clarify

  13. Arvind Patil says:

    What is correct income tax exemption limit for resident individual is it 250000/- or 300000/- .AY 2017-18
    I post this query because in income tax departments e-filing websites TAX CALCULATOR for ay 2017-18 tax calculate on Rs. 300000/- is nil for normal citizen & Rs. 350000/- for senior citizen.

    Please explain.

  14. shaik karimulla v says:

    my father physically handicapped and depending on my income. any exemption for tax 2016-2017

  15. shaik karimulla v says:

    my father is having 72 yrs age and physically handicapped is it any exemption from tax to me

  16. shaik karimulla v says:

    my father having the age of 72 yrs age and physically handicapped and depending on me , is it any exemption from tax for the year 2016-2017

  17. Manohar I Panjwani says:

    Any Tax Payer who completes 59 years,79 years & 99 years was entitled for Tax calculations as per respective slabs of Senior Citizen 60 years, Super Senior Citizen 80 Years & Very Senior Citizen 100 Years.
    I got refund ( in AY 2012-13 after 12 Yeaes.) of Approx 39000 ( 18000 I Tax + 21000 interest ) for AY 2001-02 as I completed 64 years in the Millenium Year 2000.( AY 2001-02 ) and attained/ reached the Age of 65 Years.
    Tax Guru to take action

  18. kamal jeet singh says:

    Rebate Under Physically handicapped person – What are the slabs for FY 2016-17 and investment amount in PPF

  19. Charan says:

    Gm sir

    I purchase house 49lac & loan taken 30lac in may 2016

    decduction 50000 interest par additional mile ga kya

    • KULDEEP says:

      The home buyer would have the opportunity to claim more tax deduction. The budget 2016 has increased the tax deduction for home loan interest by 50 thousand. This extra deduction of 50,000 would be available over and above the 80C limit of Rs 1.5 lac. It means, your total tax deduction under section 80C can go up to Rs 2 lacs provided you are paying at least 50,000 as home loan interest. This extra tax deduction is available to those homebuyers who buy a home in the financial year 2016 – 2017. The cost of the house should be more than 50 lacs and home loan amount should not be more than 35 lacs.

  20. CA. Subhash Chandra Podder says:

    Is this union budget 2016 ?

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