Income
Tax Rate Chart / Income Tax Slabs as Applicable for Assessment Year 2017-18 /
Financial Year 2016-17 for Individual, HUF, AOP, BOI, Partnership Firms, LLP
and Companies.
Rates
for deduction of income-tax at source from “Salaries”, computation of “advance
tax” and charging of income-tax in special cases during the financial year
2016-2017.
The
rates for deduction of income-tax at source from “Salaries” during the
financial year 2016-2017 and also for computation of “advance tax” payable
during the said year in the case of all categories of assessees have been
specified in Part III of the First Schedule to the Bill. These rates are also
applicable for charging income-tax during the financial year 2016-2017 on
current incomes in cases where accelerated assessments have to be made, for
instance, provisional assessment of shipping profits arising in India to
non-residents, assessment of persons leaving India for good during the
financial year, assessment of persons who are likely to transfer property to avoid
tax, assessment of bodies formed for a short duration, etc.
The
salient features of the rates specified in the said Part III are indicated in
the following paragraphs‑
1.
Individual, Hindu undivided family, association of persons, body of individuals,
artificial juridical person.
Paragraph
A of Part-III of First Schedule to the Bill provides following rates of
income-tax:-
(i)
The rates of income-tax in the case of every individual (other than those
mentioned in (ii) and (iii) below) or Hindu undivided family or every
association of persons or body of individuals, whether incorporated or not, or
every artificial juridical person referred to in sub-clause (vii) of clause
(31) of section 2 of the Act (not being a case to which any other Paragraph of Part
III applies) are as under:-
Income
Slabs
|
Tax
Rates
|
|
i.
|
Where the total income does not
exceed Rs. 2,50,000/-.
|
NIL
|
ii.
|
Where the total income exceeds Rs.
2,50,000/- but does not exceed Rs. 5,00,000/-.
|
10% of amount by which the total
income exceeds Rs. 2,50,000/-
|
iii.
|
Where the total income exceeds Rs.
5,00,000/- but does not exceed Rs. 10,00,000/-.
|
Rs. 25,000/- + 20% of the amount
by which the total income exceeds Rs. 5,00,000/-.
|
iv.
|
Where the total income exceeds Rs.
10,00,000/-.
|
Rs. 1,25,000/- + 30% of the amount
by which the total income exceeds Rs. 10,00,000/-.
|
(ii)
In the case of every individual, being a resident in India, who is of the age
of sixty years or more but less than eighty years at any time during the
previous year,—
Income
Slabs
|
Tax
Rates
|
|
i.
|
Where the total income does not
exceed Rs. 3,00,000/-.
|
NIL
|
ii.
|
Where the total income exceeds Rs.
3,00,000/- but does not exceed Rs. 5,00,000/-
|
10% of the amount by which the
total income exceeds Rs. 3,00,000/
|
iii.
|
Where the total income exceeds Rs.
5,00,000/- but does not exceed Rs. 10,00,000/-
|
Rs. 20,000/- + 20% of the amount
by which the total income exceeds Rs. 5,00,000/-.
|
iv.
|
Where the total income exceeds Rs.
10,00,000/-
|
Rs. 120,000/- + 30% of the amount
by which the total income exceeds Rs. 10,00,000/-.
|
(iii)
in the case of every individual, being a resident in India, who is of the age
of eighty years or more at anytime during the previous year,—
Income
Slabs
|
Tax
Rates
|
|
i.
|
Where the total income does not
exceed Rs. 5,00,000/-.
|
NIL
|
ii.
|
Where the total income exceeds Rs.
5,00,000/- but does not exceed Rs. 10,00,000/-
|
20% of the amount by which the
total income exceeds Rs. 5,00,000/-.
|
iii.
|
Where the total income exceeds Rs.
10,00,000/-
|
Rs. 100,000/- + 30% of the amount
by which the total income exceeds Rs. 10,00,000/-.
|
The
amount of income-tax computed in accordance with the preceding provisions of
this Paragraph shall be increased by a surcharge at the rate of fifteen
percent. of such income-tax in case of a person having a total income exceeding
one crore rupees.
However,
the total amount payable as income-tax and surcharge on total income exceeding
one crore rupees shall not exceed the total amount payable as income-tax on a
total income of one crore rupees by more than the amount of income that exceeds
one crore rupees.
2.
Co-operative Societies
In
the case of co-operative societies, the rates of income-tax have been specified
in Paragraph B of Part III of the First Schedule to the Bill. These rates will
continue to be the same as those specified for financial year 2015-16.
The
amount of income-tax shall be increased by a surcharge at the rate of twelve
percent. of such income-tax in case of a co-operative society having a total
income exceeding one crore rupees.
However,
the total amount payable as income-tax and surcharge on total income exceeding
one crore rupees shall not exceed the total amount payable as income-tax on a
total income of one crore rupees by more than the amount of income that exceeds
one crore rupees.
3.
Firms
In
the case of firms, the rate of income-tax has been specified in Paragraph C of
Part III of the First Schedule to the Bill. This rate will continue to be the
same as that specified for financial year 2015-1 6.
The
amount of income-tax shall be increased by a surcharge at the rate of twelve
percent. of such income-tax in case of a firm having a total income exceeding
one crore rupees.
However,
the total amount payable as income-tax and surcharge on total income exceeding
one crore rupees shall not exceed the total amount payable as income-tax on a
total income of one crore rupees by more than the amount of income that exceeds
one crore rupees.
4.
Local authorities
The
rate of income-tax in the case of every local authority is specified in
Paragraph D of Part III of the First Schedule to the Bill. This rate will
continue to be the same as that specified for the financial year 2015-16.
The
amount of income-tax shall be increased by a surcharge at the rate of twelve
percent. of such income-tax in case of a local authority having a total income
exceeding one crore rupees.
However,
the total amount payable as income-tax and surcharge on total income exceeding
one crore rupees shall not exceed the total amount payable as income-tax on a
total income of one crore rupees by more than the amount of income that exceeds
one crore rupees.
5.
Companies
The
rates of income-tax in the case of companies are specified in Paragraph E of
Part III of the First Schedule to the Bill. In case of domestic company, the
rate of Income-tax shall be twenty nine per cent. of the total income if the
total turnover or gross receipts of the company in the previous year 2014-15
does not exceed five crore rupees and in all other cases the rate of Income-tax
shall be thirty per cent. of the total income.
In
order to provide relief to newly setup domestic companies engaged solely in the
business of manufacture or production of article or thing, it is proposed to
amend the Act by way of insertion of new section 115BA, to provide that the income-tax
payable in respect of the total income of a domestic company for any previous
year relevant to the assessment year beginning on or after the 1st day
of April, 2017 shall be computed @ 25% at the option of the company, if, –
- the company has been setup and registered on or after 1st day of March, 2016;
- the company is engaged in the business of manufacture or production of any article or thing and is not engaged in any other business;
- the company while computing its total income has not claimed any benefit under section 10AA, benefit of accelerated depreciation, benefit of additional depreciation, investment allowance, expenditure on scientific research and any deduction in respect of certain income under Part-C of Chapter-VI-A other than the provisions of section 80JJAA; and
- the option is furnished in the prescribed manner before the due date of furnishing of income.
In
the case of a company other than a domestic company, the rates of tax are the
same as those specified for the financial year 2015-16.
Surcharge
at the rate of seven per cent shall be levied in case of a domestic company if
the total income of the domestic company exceeds one crore rupees but does not
exceed ten crore rupees. Surcharge at the rate of twelve percent shall be
levied if the total income of the domestic company exceeds ten crore rupees. In
case of companies other than domestic companies, the existing surcharge of two
per cent. shall continue to be levied if the total income exceeds one crore
rupees but does not exceed ten crore rupees. Surcharge at the rate of five
percent shall continue to be levied if the total income of the company other
than domestic company exceeds ten crore rupees.
However,
the total amount payable as income-tax and surcharge on total income exceeding
one crore rupees but not exceeding ten crore rupees, shall not exceed the total
amount payable as income-tax on a total income of one crore rupees, by more
than the amount of income that exceeds one crore rupees. The total amount
payable as income-tax and surcharge on total income exceeding ten crore rupees,
shall not exceed the total amount payable as income-tax and surcharge on a
total income of ten crore rupees, by more than the amount of income that
exceeds ten crore rupees.
In
other cases (including sections 115-O, 1 15QA, 1 15R, 1 15TA or 1 15TD), the
surcharge shall be levied at the rate of twelve percent.
For
financial year 2016-2017, additional surcharge called the “Education Cess on
income-tax” and “Secondary and Higher Education Cess on income-tax” shall
continue to be levied at the rate of two per cent. and one per cent.
respectively, on the amount of tax computed, inclusive of surcharge (wherever
applicable), in all cases. No marginal relief shall be available in respect of
such Cesses.
[Clause
2, 49 & First Schedule]
Clause
49 of Finance Bill 2016
Clause
49 of the Bill seeks to insert a new section 115BA in the Income-tax Act
relating to tax on income of certain domestic companies.
Sub-section
(1) of the proposed new section provides that the income-tax payable in respect
of the total income of a person being
domestic
company, for any previous year relevant to the assessment year beginning on or
after the 1st day of April, 2017 shall, at the option of such person, be
computed at the rate of twenty-five per cent., if the conditions contained in
sub-section (2) of the said section are satisfied.
Sub-section
(2) of the proposed new section provides that the conditions referred to in sub-section
(1) are the following, namely:–
(a)
the company has been set up and registered on or after the 1st day of March,
2016;
(b)
the company is engaged in the business of manufacturing or production of any
article or thing; and
(c)
the total income of the company has been computed, –
(i)
without any deduction under the provisions of section 1 0AA or clause (iia) of
sub-section (1) of section 32 or section 32AC or section 32AD or section 33AB
or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of
subsection (1) or sub-section (2AA) or sub-section (2AB) of section 35 or
section 35AC or section 35AD or section 35CCC or section 35CCD or under any
provisions of Chapter VI-A under the heading “C.– Deductions in respect of
certain incomes” other than the provisions of section 80JJAA;
(ii)
without set off of any loss carried forward from any earlier assessment year if
such loss is attributable to any of the deductions referred to in sub-clause
(i); and
(iii)
depreciation under section 32, other than clause (iia) of sub-section (1) of
the said section is determined in the manner as may be prescribed.
Sub-section
(3) of the proposed new section provides that the loss referred to in
sub-clause (ii) of clause (c) of sub-section (2) shall be deemed to have been
already given full effect to and no further deduction for such loss shall be
allowed for any subsequent year.
Sub-section
(4) of the proposed new section provides that the option by the person referred
to in sub-section (1) shall be exercised in the prescribed manner on or before
the due date specified under sub-section (1) of section 139 for furnishing the
return of income for the relevant previous year.