Personal Tax Rates
The tax rates have remained the same as in the earlier year
(A) For Individuals, HUFs, AOPs, BOIs [not covered in (B) & (C)below]
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Income
|
Rate of Tax (%)
|
||
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Tax Rate (%)
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Cess @ 4% (%)
|
Effective Rates (%)
|
|
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Upto Rs. 2,50,000
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0.00%
|
0.00%
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0.00%
|
|
Rs. 2,50,001 to Rs. 5,00,000
|
5.00%
|
0.20%
|
5.20%
|
|
Rs. 5,00,001 to Rs. 10,00,000
|
20.00%
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0.80%
|
20.80%
|
|
Above Rs. 10,00,000
|
30.00%
|
1.20%
|
31.20%
|
(B) Resident Senior individuals (Age 60 years or more)
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Income
|
Rate of Tax (%)
|
||
|
Tax Rate (%)
|
Cess @ 4% (%)
|
Effective Rates (%)
|
|
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Upto Rs. 3,00,000
|
0.00%
|
0.00%
|
0.00%
|
|
Rs. 3,00,001 to Rs. 5,00,000
|
5.00%
|
0.20%
|
5.20%
|
|
Rs. 5,00,001 to Rs. 10,00,000
|
20.00%
|
0.80%
|
20.80%
|
|
Above Rs. 10,00,000
|
30.00%
|
1.20%
|
31.20%
|
(C) Resident Very Senior individuals (Age 80 years or more)
|
Income
|
Rate of Tax (%)
|
||
|
Tax Rate (%)
|
Cess @ 4% (%)
|
Effective Rates (%)
|
|
|
Upto Rs. 5,00,000
|
0.00%
|
0.00%
|
0.00%
|
|
Rs. 5,00,001 to Rs. 10,00,000
|
20.00%
|
0.80%
|
20.80%
|
|
Above Rs. 10,00,000
|
30.00%
|
1.20%
|
31.20%
|
Surcharge for Individuals, HUFs, AOPs, BOIs
|
Existing Surcharge
|
Proposed Surcharge
|
|||
|
Net Taxable Income
|
Rate of surcharge
|
Net Taxable Income
|
Rate of surcharge
|
|
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Upto Rs. 50,00,000
|
0.00%
|
Upto 50,00,000
|
0.00%
|
|
|
Rs. 50,00,001 – Rs. 1,00,00,000
|
10.00%
|
Rs. 50,00,001 – Rs. 1,00,00,000
|
10.00%*
|
|
|
Rs.1,00,00,001 +
|
15.00%
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Rs.1,00,00,001 – Rs.2,00,00,000
|
15.00%*
|
|
|
|
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Rs.2,00,00,001 – Rs.5,00,00,000
|
25.00%*
|
|
|
|
|
5,00,00,000+
|
37.00%*
|
|
[ *Note: However, assessee would be entitled to Marginal Relief]
Rebate for Resident Individuals
The rebate u/s 87A has now been increased to INR 12,500/- for resident individuals whose total income is not exceeding INR 5,00,000/- . The amount of rebate will be the actual tax payable or Rs. 12,500/-, whichever is lower
Corporate Tax
- Finance Act, 2017 introduced a reduced rate of tax of 25% for domestic companies with turnover or gross receipts less than INR 50 crore. This reduced rate is proposed to be extended to companies whose turnover or gross receipts does not exceed INR 400 crore (increased from INR 250 crore) during financial year 2017-18. For other domestic companies, the rate of 30% shall continue to apply.
- The rate of tax payable by Foreign Companies have not been changed and remains at 40%.
- Surcharge remains unchanged at 7% and 12% for domestic companies and 2% and 5% for foreign companies.
Cess (for all assessees):
The Secondary Education Cess of 2% and Higher Secondary Education Cess of 1% (aggregate 3%) applicable on tax and surcharge to every tax payer is proposed to be replaced by a single Health & Education Cess of 4%.
