Rates of Income tax for Financial year 2016-17 i.e. Assessment year 2017-18
(A) Income tax Rates for Individual, HUF, AOP & BOIs
- Income tax rates for resident senior citizen who is 60 years or more at any time during the previous year but less than 80 year on the last day of the previous year (born between 02-04-1937 to 01-04-1957)
| Range of Net income (Rs.) | Income tax rates | Surcharge | EC & SHEC |
|---|---|---|---|
| Upto 300000/- | nil | nil | nil |
| 300000/- to 500000/- | 10% of (Total income less Rs. 300000/-) | nil | 3% of income tax |
| 500000/- to 1000000/- | Rs. 20000 + 20% of (Total income less Rs. 500000/-) | nil | 3% of income tax |
| 1000000/- to 10000000/- | Rs. 120000 + 30% of (Total income less Rs. 1000000/-) | nil | 3% of income tax |
| above Rs. 10000000/- | Rs. 2820000 + 30% of (Total income less Rs. 10000000/-) | 15% of income tax | 3% of income tax & surcharge |
- Income tax rates for resident super senior citizen who is 80 years or more at any time during the previous year (born before 02-04-1937)
| Range of Net income (Rs.) | Income tax rates | Surcharge | EC & SHEC |
|---|---|---|---|
| Upto 500000/- | nil | nil | nil |
| 500000/- to 1000000/- | 20% of (Total income less Rs. 500000/-) | nil | 3% of income tax |
| 1000000/- to 10000000/- | Rs. 100000 + 30% of (Total income less Rs. 1000000/-) | nil | 3% of income tax |
| above Rs. 10000000/- | Rs. 2800000 + 30% of (Total income less Rs. 10000000/-) | 15% of income tax | 3% of income tax & surcharge |
- Income tax rates for other resident individual (born after 01-04-1957), any non-resident individual, HUF, BOI, AOP, Artificial judicial perosn
| Range of Net income (Rs.) | Income tax rates | Surcharge | EC & SHEC |
|---|---|---|---|
| Upto 250000/- | nil | nil | nil |
| 250000/- to 500000/- | 10% of (Total income less Rs. 250000/-) | nil | 3% of income tax |
| 500000/- to 1000000/- | Rs. 25000 + 20% of (Total income less Rs. 500000/-) | nil | 3% of income tax |
| 1000000/- to 10000000/- | Rs. 125000 + 30% of (Total income less Rs. 1000000/-) | nil | 3% of income tax |
| above Rs. 10000000/- | Rs. 2825000 + 30% of (Total income less Rs. 10000000/-) | 15% of income tax | 3% of income tax & surcharge |
Note:-
(1)Rebate under section 87A, A resident individual whose net income does not exceed Rs. 500000/- can avail rebate u/s 87A which is an amount equal to 100% of income tax or Rs. 5000/- whichever is less. Rebate u/s 87A is deductible from income tax before calculating education cess.
(2) If Net income exceeds Rs. 1 crore then surcharge is applicable at the rate of 15% of income tax. Further surcharge is subject to marginal relief i.e amount payable as income tax & surcharge shall not exceed the total amount payable as income tax on total income of Rs. 1 Crore by more than the amount of income that exceeds Rs. 1 crore.
(3) Surcharge is calculated on income tax before adding EC & SHEC. But EC & SHEC are calculated on income tax including surcharge if any.
(4) Alternate minimum tax: Tax payable cannot be less than 18.5% (+SC+EC+SHEC) of adjusted total income u/s 115JC. (Not applicable to those individual, HUF, AOP, BOI & AJP whose adjusted total income does not exceed Rs. 20 Lakhs AND who are not claiming any deduction u/s 10AA/ 35AD/ Chapter VI heading C-“deduction for certain incomes”.)
(B) Income tax Rates for Firms
- For FY 2016-17, Income of Firms is taxable at the rate of 30%.
- Business under Proprietorship is not covered here, Income from Proprietorship is taxable in the hand of Proprietor in his Individual return under the head “PGBP – Profits & Gains of Business or Profession” .
- Surcharge:- In case income of firm exceeds Rs. 1 crore then surcharge @ 12% of income tax is applicable which is subject to marginal relief ie. The amount payable as income tax & surcharge shall not exceed the total amount payable as Income tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
- EC & SHEC:EC & SHEC is payable @3% of income tax & Surcharge.
- Alternate minimum tax: Tax payable by firm cannot be less than 18.5% (+SC+EC+SHEC) of adjusted total income u/s 115JC.
(C) Income tax Rates for Companies
- Rate of income tax For FY 2016-17 for companies is as given below:
| Company | Category | Tax Rate |
|---|---|---|
| Domestic Company | (1) Domestic Company:-where total turnover or gross receipts during financial year 2014-15 does not exceed Rs. 5 crore. | 29% |
| (2) any other domestic Company | 30% | |
| Foreign Company | (1) Royalty received form Government or Indian concern in pursuance of an agreement made by it after 31st march 1961 but before 1st April 1976 or fee for rendering technical services in pursuance of an agreement made by it after 29th February 1964 but before 1st April 1976 And where such agreement has been approved by Central Government. | 50% |
| (2) Other Income | 40% |
- Surcharge: If net income of a company does not exceed Rs. 1 crore, surcharge will be nil . For other cases, rate of Surcharge to be calculated on Income tax are given below:-(Surcharges are subject to marginal Relief.)
| Company | If net income is more than Rs. 1 crore but not more than Rs. 10 crore. | If net income is more than Rs. 10 crore. |
|---|---|---|
| Domestic Company | 7% | 12% |
| Foreign Company | 2% | 5% |
- EC & SHEC:EC & SHEC is payable @3% of income tax & Surcharge.
- A company is required to pay higher of the tax calculated under the following two provisions:
- Tax liability as per the Normal provisions of income tax act(as stated above)
- Tax liability as per the MAT provisions given in Sec 115JB(18.5 % of Book Profits Plus 3 % edu cess plus surcharge if applicable)
(D) Income tax Rates for Co-operative Societies
- Rates of income tax For FY 2016-17 for co-operative societies are as given below:
| Net Income Range | Rate of Tax |
|---|---|
| Upto Rs. 10000/- | 10% |
| Rs. 10000 to Rs. 20000 | 20% |
| Above Rs. 20000/- | 30% |
- Surcharge:- In case income of co-operative society exceeds Rs. 1 crore then surcharge @ 12% of income tax is applicable which is subject to marginal relief ie. The amount payable as income tax & surcharge shall not exceed the total amount payable as Income tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
- EC & SHEC:EC & SHEC is payable @3% of income tax & Surcharge.
- Alternate minimum tax: Tax payable by co-operative society cannot be less than 18.5% (+SC+EC+SHEC) of adjusted total income u/s 115JC.
(E) Income tax Rates for Local Authorities
- For FY 2016-17, Income of Local Authority is taxable at the rate of 30%.
- Surcharge:- In case income exceeds Rs. 1 crore then surcharge @ 12% of income tax is applicable which is subject to marginal relief ie. The amount payable as income tax & surcharge shall not exceed the total amount payable as Income tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
- EC & SHEC:EC & SHEC is payable @3% of income tax & Surcharge.
- Alternate minimum tax: Tax payable cannot be less than 18.5% (+SC+EC+SHEC) of adjusted total income u/s 115JC.
(F) Income taxable at rate specified in Income tax Act. (Income taxable at special rates)
Following given are list of some important cases of income which is taxable at rates specified in Income-tax Act and not at rates mentioned above:-
| Section | Income | Income tax rate |
|---|---|---|
| 111A | Short term capital Gain (where STT applicable) | 15% |
| 112 | Long Term Capital Gain | 10% / 20% |
| 115BB | Winning from lotteries, Crossword puzzles, race horse (excluding activity of owning & maintaining race horses), card games and other games of gambling | 30% |
| 115B | Profits & gains of Life insurance business | 12.5% |