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.
Income Tax Slab Rate Post Budget 2017
The tax is calculated according to the income tax slabs announced by the government every year in the Budget. The finance minister has announced the changes in the tax slab structure in union budget for 2017.
Following are the income tax slab rates and deductions in India for different categories of tax payers:
Income Tax Slab Rate For Men below 60 Years of Age
|
Income Tax Slab |
Income Tax Rate |
Education Cess |
Secondary and Higher Education Cess |
|
Income upto Rs. 2,50,000 |
Nil |
Nil |
Nil |
|
Income between Rs. 2,50,001 - Rs. 500,000 |
5% of Income exceeding Rs. 2,50,000 |
2% of income tax |
1% of income tax |
|
Income between Rs. 500,001 - Rs. 10,00,000 |
20% of Income exceeding Rs. 5,00,000 |
2% of income tax |
1% of income tax |
|
Income above Rs. 10,00,000 |
30% of Income exceeding Rs. 10,00,000 |
2% of income tax |
1% of income tax |
Income Tax Slab Rate For Women below 60 Years of Age
|
Income Tax Slab |
Income Tax Rate |
Education Cess |
Secondary and Higher Education Cess |
|
Income upto Rs. 2,50,000 |
Nil |
Nil |
Nil |
|
Income between Rs. 2,50,001 - Rs. 500,000 |
5% of Income exceeding Rs. 2,50,000 |
2% of income tax |
1% of income tax |
|
Income between Rs. 500,001 - Rs. 10,00,000 |
20% of Income exceeding Rs. 5,00,000 |
2% of income tax |
1% of income tax |
|
Income above Rs. 10,00,000 |
30% of Income exceeding Rs. 10,00,000 |
2% of income tax |
1% of income tax |
Income Tax Slab Rate For Senior Citizens (Age 60 years or more but less than 80 years)
|
Income Tax Slab |
Income Tax Rate |
Education Cess |
Secondary and Higher Education Cess |
|
Income upto Rs. 3,00,000 |
Nil |
Nil |
Nil |
|
Income between Rs. 3,00,001 - Rs. 500,000 |
5% of Income exceeding Rs. 3,00,000 |
2% of income tax |
1% of income tax |
|
Income between Rs. 500,001 - Rs. 10,00,000 |
20% of Income exceeding Rs. 5,00,000 |
2% of income tax |
1% of income tax |
|
Income above Rs. 10,00,000 |
30% of Income exceeding Rs. 10,00,000 |
2% of income tax |
1% of income tax |
Income Tax Slab Rate For Senior Citizens (Age 80 years or more)
|
Income Tax Slab |
Income Tax Rate |
Education Cess |
Secondary and Higher Education Cess |
|
Income upto Rs. 5,00,000 |
Nil |
Nil |
Nil |
|
Income between Rs. 500,001 - Rs. 10,00,000 |
20% of Income exceeding Rs. 5,00,000 |
2% of income tax |
1% of income tax |
|
Income above Rs. 10,00,000 |
30% of Income exceeding Rs. 10,00,000 |
2% of income tax |
1% of income tax |
Income Tax Slab Rate Hindu Undivided Families (HUF)
|
Income Tax Slab |
Income Tax Slab Rate |
|
Up to Rs.2,50,000 |
Nil |
|
Rs.2,50,000 to Rs.5,00,000 |
10%Income exceeding Rs. 2,50,000 |
|
Rs.5,00,000 to Rs.10,00,000 |
20%Income exceeding Rs. 5,00,000 |
|
Over Rs.10,00,000 |
30%Income exceeding Rs. 10,00,000 |
Income Tax Slab Rate Legal Entities Registered as Associations of Persons
|
Income Tax Slab |
Income Tax Slab Rate |
|
Up to Rs.2,50,000 |
Nil |
|
Rs.2,50,000 to Rs.5,00,000 |
10%Income exceeding Rs. 2,50,000 |
|
Rs.5,00,000 to Rs.10,00,000 |
20%Income exceeding Rs. 5,00,000 |
|
Over Rs.10,00,000 |
30%Income exceeding Rs. 10,00,000 |
Income Tax Slab Rate Legal Entities Registered as Bodies of Individuals
|
Income Tax Slab |
Income Tax Slab Rate |
|
Up to Rs.2,50,000 |
Nil |
|
Rs.2,50,000 to Rs.5,00,000 |
10%Income exceeding Rs. 2,50,000 |
|
Rs.5,00,000 to Rs.10,00,000 |
20%Income exceeding Rs. 5,00,000 |
|
Over Rs.10,00,000 |
30%Income exceeding Rs. 10,00,000 |
Partnership Firms:
Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%
Local Authorities:
Local Authorities are to be taxed at the rate of 30%.
Domestic Companies:
Domestic Companies are to be taxed at the rate of 30%
Income Tax Slab RateCo-operative Societies
|
Income Tax Slab |
Income Tax Slab Rate |
|
Up to Rs.10,000 |
10%Income |
|
Rs.10,000 to Rs 20,000 |
20%Income exceeding Rs. 10,000 |
|
Over Rs. 20,000 |
30%Income exceeding Rs. 20,000 |
Also,
Surcharge:
- 2% of the income tax amount (If income is greater than Rs.1,00,00,000/-)
- 5% of the income tax amount. Subject to marginal relief (If income is greater than Rs.10,00,00,000/-)
Education Cess: 2% extra (charged on the amount of income tax + surcharge being paid)
Secondary and Higher Education Cess: 1% extra (charged on the amount of income tax + surcharge being paid)