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Rates of Income Tax

A. Normal Rates

1. Tax Rates for Individuals/HUF/AOP/BOI

For A.Y. 2016-17 (Refer Notes)

Income

Rate (%)

Up to ₹ 250,000*

NIL

₹ 250,001 to ₹ 500,000

10%

₹ 500,001 to ₹ 1,000,000

20%

Above ₹ 1,000,000

30%

Notes:

  1. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years and for a resident individual who is of the age of 80 years or more will be ₹ 3,00,000/- and ₹ 5,00,000/- respectively.
  2. Surcharge of 12% applicable, if total income exceeds ₹ 1,00,00,000/-
  3. Education Cess @ 2% and Secondary and Higher education cess @ 1% leviable on tax.
  4. Rebate of ₹ 2,000/- from tax if taxable income is below ₹ 5,00,000/-
  5. Marginal relief available

For A.Y. 2017-18 (Refer Notes)

Income

Rate (%)

Up to ₹ 250,000*

NIL

₹ 250,001 to ₹ 500,000

10%

₹ 500,001 to ₹ 1,000,000

20%

Above ₹ 1,000,000

30%

Notes:

  1. * Threshold limit for a resident individual who is of the age of 60 years or more but less than 80 years and for a resident individual who is of the age of 80 years or more will be ₹ 3,00,000/- and
    ₹ 5,00,000/- respectively.
  2. Surcharge of 15% applicable, if total income exceeds ₹ 1,00,00,000/-.
  3. Education Cess @ 2% and Secondary and Higher Education Cess @ 1% leviable on tax.
  4. Rebate of ₹ 5,000/- from tax if taxable income is below ₹ 5,00,000/-.
  5. Marginal relief available.
  6. Where the total income of an individual, HUF or a firm resident in India includes any income exceeding ₹ 10,00,000 by way of dividend declared, distributed or paid by a domestic company, income tax will be calculated on income by way of such dividend @ 10%.

2. Tax Rates for Firms (including Limited Liability Partnership)

Asst. Year

Tax %

Surcharge %

Education Cess/Secondary & Higher Education Cess %

Total %

2016-17

30

0/12

3

30.90/34.608

2017-18

30

0/12

3

30.90/34.608

Notes:

  1. Surcharge applicable in case of firm having a total income exceeding Rupees one crore.
  2. Marginal relief available.

3. Tax Rates for Domestic Companies

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2016-17

30

0/7/10

3

30.90/33.063/ 34.608

2017-18

30

0/7/12

3

30.90/33.063/ 34.608

Notes:

  1. Surcharge @ 7% if total income above ₹ 1 crore and up to ₹ 10 crores and @ 12% if total income above ₹ 10 crores.
  2. Marginal relief available.

Tax Rates for companies where turnover or gross receipts in previous year 2014-15 does not exceed ₹ 5 crores

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2017-18

29

0/7/12

3

29.87/31.9609/ 33.4544

Tax Rates for new domestic companies engaged in manufacturing/production subject to certain conditions.

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2017-18

25

0/7/12

3

25.75/27.5525/ 28.84

Conditions:

  1. The company has been set up and registered on or after 1st March, 2016.
  2. The company is engaged in the business of manufacture or production of an article or thing and not engaged in any other business.
  3. The company has not claimed any benefit of
    • Section 10AA
    • Accelerated depreciation
    • Additional depreciation
    • Investment allowance
    • Expenditure on Scientific research
    • Any deduction in respect of certain income under Part C of Chapter VIA excluding section 80JJAA.
  4. The option is furnished in prescribed manner before due for furnishing the return of income.

4. Tax Rates for foreign companies

Asst. Year

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

2016-17

40

0/2/5

3

41.20/42.024/ 43.26

2017-18

40

0/2/5

3

41.20/42.024/ 43.26

Notes:

  1. Surcharge @ 2% if total income above ₹ 1 crore and up to ₹ 10 crore and @ 5% if total income above ₹ 10 crore.
  2. Marginal relief available.
  3. Tax rate for income other than royalty/FTS

5. Dividend Distribution Tax (A.Y. 2017-18)

Income

Tax %

Surcharge %

Education Cess/ Secondary & Higher Education Cess %

Total %

Under Section 115-O

17.647

12

3

20.3576

Buy-back of unlisted shares by domestic companies

20

12

3

23.072

Note:

  1. Parent company will be allowed set off of dividend received from its subsidiary in computing its dividend distribution tax subject to certain conditions.

6. Income Distribution Tax for Mutual Fund & Securitisation of Trust

Rate

Money Market Mutual Funds or Liquid Funds Section 115R

Securitisation Trust Section 115TA

Money Market, Liquid Fund or any other funds

Infrastructure Debt Fund Scheme

If distributed to Individual/HUF

If distributed to any other person

Non-resident (not being company) or a foreign company

If distributed to Individual/ HUF

If distributed to any other person

Tax %

33.3385

42.8571

5.2632

25

30

Surcharge %

12

12

12

12

12

Edn. Cess %

3

3

3

3

3

Total %

38.4593

49.44

6.0716

28.84

34.608

7. Co-operative Society (A.Ys. 2016-17 & 2017-18)

Income

Rate %

Education Cess/Secondary & Higher Education Cess %

Total %

Up to ₹ 10,000

10

3

10.3

₹ 10,001 to ₹ 20,000

20

3

20.6

₹ 20,001 and above

30

3

30.9

Notes:

  1. From assessment year 2016-17, surcharge of 12% applicable, if total income exceeds ₹ 1,00,00,000/-.
  2. Marginal relief available.

B. Special Rates

1. Long Term Capital Gains

  1. On Equity shares and units
    Long term capital gains arising on transfer of equity shares on a recognised stock exchange in India or units of an equity oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.
    For all assessees Nil – Exempt under section 10(38).
  2. On other assets and equity shares, units except falling in (a) above

Income Tax on Long Term Capital Gains

Resident Individual or HUF

20%

Domestic Companies

20%

Non-residents

20%

NRIs (for gains u/s. 115E)

10%

Any other case

20%

Notes:

  1. If tax payable in case of Long Term Capital Assets, being listed securities or units or zero coupon bond, exceeds 10% of capital gains before indexation, then such excess may be ignored. This concessional rate of 10% is applicable to transfer of units only between 1st April 2014 and 10th July, 2014.
  2. Surcharge at the rates applicable to the assessee. Education cess @ 2% and Secondary and Higher Education Cess @ 1% applicable on tax inclusive of surcharge.
  3. In case of resident individual and HUF, where tax liability arises only because of the inclusion of long term capital gains, tax to be levied at 20% or 10% as the case may be, on the excess over the minimum exemption limit.
  4. In case of resident individual and HUF, relief from LTCG is available in respect of the amount by which the Taxable Income other than LTCG falls short of Basic Exemption Limit.
  5. No deduction under Chapter VIA (80C to 80U).

2. Short Term Capital Gains

  1. On Equity shares and units
    Short term capital gains arising on transfer of equity shares on recognised stock exchange in India or units of an equity oriented Mutual Fund (if more than 65% of total proceeds of the fund are invested in equity shares), and on which Securities Transaction Tax is chargeable.

For All Assessees

15% plus surcharge, plus Education Cess & Secondary and Higher Education Cess wherever applicable

Notes:

  1. No Deduction under Chapter VI-A (80C to 80U).
  2. In case resident individual and HUF, relief from STCG available in respect of the amount by which the taxable income other than STCG, falls short of Basic Exemption Limit.
  1.  

On Short Term Capital Gains other than in (a) above

At normal rates

3. Minimum Alternate Tax payable by Companies – As a percentage of Book Profit

Type of companies

Domestic Company

Foreign Company

A.Y. 2016-17 & 2017-18

Below ₹ 1 crore

₹ 1 crore to ₹ 10 crore

Above ₹ 10 crore

Below ₹ 1 crore

₹ 1 crore to ₹ 10 crore

Above ₹ 10 crore

Rate of Tax

18.5

18.5

18.5

18.5

18.5

18.5

Surcharge

7

12

2

5

Education Cess

3

3

3

3

3

3

Effective Rate

19.055

20.3888

21.3416

19.055

19.4361

20.00775

Note:

  1. MAT Credit available in respect of MAT paid from A.Y. 2006-07 onwards. From A.Y. 2010-11, MAT Credit allowed to be carried forward for set off for ten years.

4. Alternate Minimum Tax (AMT)

Type of Entity

Other than Companies

A.Y. 2016-17 & A.Y. 2017-18

Below ₹ 1 crore

Above ₹ 1 crore

Rate of Tax

18.5

18.5

Surcharge

12

Education Cess

3

3

Effective Rate

19.055

21.3416

Notes:

  1. AMT credit to be allowed for 10 assessment years

5. Advance Tax

Assessment Year 2016 -17

Advance Tax Obligation (If tax payable exceeds ₹ 10,000)

Due Date of Instalment payable on or before

Amt. Payable as a % of Tax

For Cos.*

For Other Assessees**

15th June

15%

15th September

30%

30%

15th December

30%

30%

15th March

Balance

Balance


Assessment Year
2017 -18

Advance Tax Obligation
(If tax payable exceeds ₹ 10,000)

Due Date of Instalment payable on or before

Amt. Payable as a % of Tax
(For all Assessees)

15th June

15%

15th September

30%

15th December

30%

15th March

Balance

No advance tax to be paid by senior citizen if he/she does not have income under head "Profit and Gains of Business or Profession".

*MAT also subject to Advance Tax. Refer Circular No. 13 of 2001, [252 ITR (St) 52]

**AMT also subject to Advance tax.

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