Income Tax Slabs in India

This article will guide you through the Income Tax Slabs in India.

What is Income Tax Slab?

Income taxes are the major source of revenue for the Government in any country and the income taxes are the taxes which are collected on income earned during a financial year. There are three categories depending upon the age on which income taxes are charged. There are broadly two categories on which income taxes are charged:

  1. Individuals and HUF (Hindu Undivided Family).
  2. All individuals (Male and Female) and HUF (Hindu Undivided Family) below 60 years of age.
  3. All individuals above 60 years of age but below 80 years of age ( Senior citizens).
  4. All individuals above 80 years of age (Super senior citizens).
  5. Businesses.
  6. Domestic Company, Firms and Local Authority.
  7. Co-operative Societies.
  8. Foreign Companies.

Tax Slabs have been unchanged since financial year 2014-15 (Assessment year 2015-16), the same rates are applicable for FY 2015-16 and FY 2016-17.

Category 1

 A – Income Tax for All individuals (Male and Female) and HUF (Hindu Undivided Family) below 60 years of age.

B – Income Tax for Senior Citizens (Individuals above 60 years of age but below 80 years of age). C – Income Tax for Super Senior Citizens (Individuals above 80 years of age).Category 2A – Income Tax for Domestic Company, Firms and Local Authority. For the domestic companies, firms and local authorities, the income tax is charged at 30%  on the overall income irrespective of any tax slabs. Domestic companies are required to pay a surcharge of 5% on income above Rs. 1 crore and a surcharge of 10% on income above Rs. 10 crores. B –  Income Tax for Co-operative Societies C – Income Tax for Foreign Companies. Foreign Companies have to pay an income tax of 40% on their overall operating income out of India. The surcharge for these companies are collected at 10% on income exceeding Rs. 1 crore.

INCOME SLAB TAX RATE  TAX AMOUNT
  • Income up to Rs. 2,50,000
  • No Tax
  • Nil
  • Income between Rs. 2,50,000 to Rs. 5,00,000
  • 10% of the income
  • Rs. 25,000
  • Income between Rs. 5,00,000 to Rs. 10,00,000
  • 20% of the income
  •  Rs. 1,00,000
  •  Income more than Rs. 10,00,000
  • 30% of the income
  • Rs. 1,50,000
Surcharge – 12% of the income tax if the exceeds Rs. 1 crore

Cess – 3% of the total income tax + surcharge

INCOME SLAB TAX RATE TAX AMOUNT
  • Income up to Rs. 3,00,000
  • No Tax
  • Nil
  • Income between Rs. 3,00,000 to Rs. 5,00,000
  • 10% of the income
  • Rs. 30,000
  • Income between Rs. 5,00,000 to Rs. 10,00,00
  •  20% of the income
  • Rs. 1,00,000
  • Income more than Rs. 10,00,000
  • 30% of the income
  • Rs. 3,00,000
Surcharge – 12% of the income tax if the exceeds Rs. 1 crore

Cess – 3% of the total income tax + surcharge

INCOME SLAB TAX RATE TAX AMOUNT
  • Income up to Rs. 2,50,000
  • No Tax
  • Nil
  • Income between Rs. 2,50,000 to Rs. 5,00,000
  • No Tax
  • Nil
  • Income between Rs. 5,00,000 to Rs. 10,00,000
  • 20% of the income
  • Rs. 1,00,000
  • Income more than Rs. 10,00,000
  • 30% of the income
  • Rs. 3,00,000
Surcharge – 12% of the income tax if the exceeds Rs. 1 crore

Cess – 3% of the total income tax + surcharge

INCOME SLAB TAX RATE
  • Income up to Rs. 10,000
  • 10% of the income
  • Income between Rs. 10,000 to Rs. 20,000
  • 20%  of the income
  • Income more than Rs. 20,000
  • 30% of the income 

 

For any help on ITR Filing feel free to consult the tax experts at Taxraahi. You can file ITR yourself via our ITR software or get CA’s help on filing income tax return. You can also use the option of Business Return, and Bulk Return.

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By | 2018-08-08T12:23:23+00:00 June 11th, 2016|Categories: Income tax basics|Tags: , , |0 Comments

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