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Individuals, Hindu undivided families, AOPs, BOIs - The tax rates applicable to individuals are also applicable to a Hindu undivided family, an association of persons, body of individuals or an artificial juridical person. The rates applicable for the assessment years 2016-17 and 2017-18 are as follows :

ASSESSMENT YEAR 2016-17 - Tax rates for the assessment year 2016-17 are given below



FOR A RESIDENT SENIOR CITIZEN (WHO IS 60 YEARS OR MORE AT ANY TIME DURING THE PREVIOUS YEAR BUT LESS THAN 80 YEARS ON THE LAST DAY OF THE PREVIOUS YEAR, I.E., BORN DURING APRIL 1, 1936 AND MARCH 31, 1956)


Net income range

Income-tax
rates

Surcharge

Education
cess

Secondary and
higher education cess

Up to Rs. 3,00,000

Nil

Nil

Nil

Nil

Rs. 3,00,000 - Rs. 5,00,000

10% of (total income minus Rs. 3,00,000) [see Note 1]

Nil

2% of income-tax

1% of income-tax

Rs. 5,00,000 - Rs. 10,00,000

Rs. 20,000 + 20% of (total income minus Rs. 5,00,000)

Nil

2% of income-tax

1% of income-tax

Rs. 10,00,000 - Rs. 1,00,00,000

Rs. 1,20,000 + 30% of (total income minus Rs. 10,00,000)

Nil

2% of income-tax

1% of income-tax

Above Rs.1,00,00,000

Rs. 28,20,000 + 30% of
(total income minus Rs.1,00,00,000)

12% of income-tax
[see Note 2]

2% of income-tax
and surcharge

1% of income-tax
and surcharge



For a resident super senior citizen (who is 80 years or more at any time during the previous yeari.e., born before April 1, 1936)

Net income range

Income-tax rates

Surcharge

Education cess

Secondary and higher
education cess

Up to Rs. 5,00,000

Nil

Nil

Nil

Nil

Rs. 5,00,000 - Rs. 10,00,000

20% of (total income minus Rs. 5,00,000)

Nil

2% of income-tax

1% of income-tax

Rs. 10,00,000 - Rs. 1,00,00,000

Rs. 1,00,000 + 30% of
(total income minus Rs. 10,00,000)

Nil

2% of income-tax

1% of income-tax

Above Rs. 1,00,00,000

Rs. 28,00,000 + 30% of
(total income minus Rs. 1,00,00,000)

12% of income-tax
[see Note 2]

2% of income-tax
and surcharge

1% of income-tax and surcharge



For any other resident individual (born on or after April 1, 1956), any non-resident individual, every HUF/AOP/BOI/artificial juridical person

Net income range

Income-tax rates

Surcharge

Education cess

Secondary and higher
education cess

Up to Rs. 2,50,000

Nil

Nil

Nil

Nil

Rs. 2,50,000 - Rs. 5,00,000

10% of (total income minus Rs. 2,50,000)
[see Note 1]

Nil

2% of income-tax

1% of income-tax

Rs. 5,00,000 - Rs. 10,00,000

Rs. 25,000 + 20% of
(total income minus Rs. 5,00,000)

Nil

2% of income-tax

1% of income-tax

Rs. 10,00,000 - Rs. 1,00,00,000

Rs. 1,25,000 + 30% of
(total income minus Rs. 10,00,000)

Nil

2% of income-tax

1% of income-tax

Above Rs. 1,00,00,000

Rs. 28,25,000 + 30% of
(total income minus Rs. 1,00,00,000)

12% of income-tax
[see Note 2]

2% of income-tax
and surcharge

1% of income-tax
and surcharge

Notes :

1.


Rebate under section 87A - A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,000, whichever is less.

2.


Surcharge - Surcharge is 12 per cent of income-tax if net income exceeds Rs. 1 crore. It is subject to marginal relief (in the case of a person having a net income of exceeding Rs. 1 crore, the amount payable as income tax and 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.


Education cess - It is 2 per cent of income-tax and surcharge.

4.


Secondary and higher education cess - It is 1 per cent of income-tax and surcharge.



Alternate minimum tax - Tax payable by a non-corporate assessee cannot be less than 18.5 per cent (+SC+EC+SHEC) of "adjusted total income" as per section 115JC

ASSESSMENT YEAR 2017-18 - Tax rates for the assessment year 2017-18 are given below



For a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year, i.e., born during April 1, 1937 and March 31, 1957)

Net income range

Income-tax rates

Surcharge

Education cess

Secondary and higher
education cess

Up to Rs. 3,00,000

Nil

Nil

Nil

Nil

Rs. 3,00,000 - Rs. 5,00,000

10% of (total income minus Rs. 3,00,000)
[see Note 1]

Nil

2% of income-tax

1% of income-tax

Rs. 5,00,000 - Rs. 10,00,000

Rs. 20,000 + 20% of
(total income minus Rs. 5,00,000)

Nil

2% of income-tax

1% of income-tax

Rs. 10,00,000 - Rs. 1,00,00,000

Rs. 1,20,000 + 30% of
(total income minus Rs. 10,00,000)

Nil

2% of income-tax

1% of income-tax

Above Rs. 1,00,00,000

Rs. 28,20,000 + 30% of
(total income minus Rs. 1,00,00,000)

15% of income-tax [see Note 2]

2% of income-tax and surcharge

1% of income-tax and surcharge



For a resident super senior citizen (who is 80 years or more at any time during the previous year, i.e., born before April 1, 1937)

Net income range

Income-tax rates

Surcharge

Education cess

Secondary and higher
education cess

Up to Rs. 5,00,000

Nil

Nil

Nil

Nil

Rs. 5,00,000 - Rs. 10,00,000

20% of (total income minus Rs. 5,00,000)

Nil

2% of income-tax

1% of income-tax

Rs. 10,00,000 - Rs. 1,00,00,000

Rs. 1,00,000 + 30% of
(total income minus Rs. 10,00,000)

Nil

2% of income-tax

1% of income-tax

Above Rs. 1,00,00,000

Rs. 28,00,000 + 30% of
(total income minus Rs. 1,00,00,000)

15% of income-tax
[see Note 2]

2% of income-tax
and surcharge

1% of income-tax and surcharge



For any other resident individual (born on or after April 1, 1957), any non-resident individual, every HUF/AOP/BOI/artificial juridical person

Net income range

Income-tax rates

Surcharge

Education cess

Secondary and higher
education cess

Up to Rs. 2,50,000

Nil

Nil

Nil

Nil

Rs. 2,50,000 - Rs. 5,00,000

10% of (total income minus Rs. 2,50,000)
[see Note 1]

Nil

2% of income-tax

1% of income-tax

Rs. 5,00,000 - Rs. 10,00,000

Rs. 25,000 + 20% of
(total income minus Rs. 5,00,000)

Nil

2% of income-tax

1% of income-tax

Rs. 10,00,000 - Rs. 1,00,00,000

Rs. 1,25,000 + 30% of
(total income minus Rs. 10,00,000)

Nil

2% of income-tax

1% of income-tax

Above Rs. 1,00,00,000

Rs. 28,25,000 + 30% of
(total income minus Rs. 1,00,00,000)

15% of income-tax
[see Note 2]

2% of income- tax
and surcharge

1% of income-tax and surcharge

Notes :

1.

Rebate under section 87A - A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 5,000, whichever is less.

2.

Surcharge - Surcharge is 15 per cent of income-tax if net income exceeds Rs. 1 crore. It is subject to marginal relief (in the case of a person having a net income of exceeding Rs. 1 crore, the amount payable as income tax and 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.

Education cess - It is 2 per cent of income-tax and surcharge.

4.

Secondary and higher education cess - It is 1 per cent of income-tax and surcharge.

Alternate minimum tax - Tax payable by a non-corporate assessee cannot be less than 18.5 per cent (+SC+EC+SHEC) of "adjusted total income" as per section 115JC

Firms - A firm is taxable at the rate of 30 per cent for the assessment years 2016-17 and 2017-18.

Surcharge - Surcharge is 12 per cent of income-tax if net income exceeds Rs. 1 crore. It is subject to marginal relief (in the case of a firm having a net income of exceeding Rs. 1 crore, the amount payable as income tax and 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).

Education cess- It is 2 per cent of income-tax and surcharge.

Secondary and higher education cess- It is 1 per cent of income-tax and surcharge.

Alternate minimum tax - Tax payable by firm cannot be less than 18.5 per cent (+SC+EC + SHEC) of "adjusted total income" as per section 115JC.

Companies - For the assessment years 2016-17 and 2017-18 the following rates of income-tax are applicable:

Company

Rate of income-tax (per cent)

Assessment year 2016-17

Assessment year 2017-18

In the case of a domestic company -


- where its total turnover or gross receipt during the previous year 2014-15 does not exceed Rs. 5 crore

30

29

- any other domestic company

30

30

In the case of a foreign company



- royalty received from Government or an Indian concern in pursuance of an agreement made by it with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made by it after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government

50

50

- other income

40

40

Surcharge - Surcharge is applicable at the rates given below


If net income does
not
exceed Rs. 1 crore

If net income is in the range
of Rs. 1 crore -Rs. 10 crore

If net income exceeds
Rs. 10 crore

Domestic company

Nil

7%*

12%**

Foreign company

Nil

2%*

5%**

*Marginal relief - In the case of a company having a net income of exceeding Rs. 1 crore, the amount payable as income-tax and 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.

**Marginal relief - In the case of a company having a net income of exceeding Rs. 10 crore, the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore.

Education cess - It is 2 per cent of income-tax and surcharge.

Secondary and higher education cess - It is 1 per cent of income-tax and surcharge.

MINIMUM ALTERNATE TAX - The following rate of minimum alternate tax shall be applicable


If book profit does not
exceed Rs.1 crore

If book profit is
in the range of
Rs. 1 crore - Rs. 10 crore

If book profit
exceeds Rs. 10 crore

IT

SC

EC+SHEC

Total

IT

SC

EC+SHEC

Total

IT

SC

EC+SHEC

Total

Domestic company

18.5

-

0.555

19.055

18.5

1.295

0.59385

20.38885

18.5

2.22

0.6216

21.3416

Foreign company

18.5

-

0.555

19.055

18.5

0.37

0.5661

19.4361

18.5

0.925

0.58275

20.00775

Note - If book profit of a company exceeds Rs. 1 crore but does not exceed Rs. 10 crore, the minimum alternate tax cannot exceed the following : (Rs. 18.5 lakh + book profit - Rs. 1 crore) + EC + SHEC. If, however, book profit exceeds Rs. 10 crore, the minimum alternate tax cannot exceed the following -

a.


in the case of domestic company (Rs. 197.95 lakh + book profit - Rs. 10 crore) + EC + SHEC; or

b.


in the case of a foreign company (Rs. 188.7 lakh + book profit - Rs. 10 crore) + EC + SHEC.

Co-operative societies - The following rates are applicable to a co-operative society for the assessment years 2016-17 and 2017-18

(Per cent)

Net income range

Rate of income-tax

Up to Rs. 10,000

10

Rs. 10,000 - Rs. 20,000

20

Above Rs. 20,000

30

Surcharge - Surcharge is 12 per cent of income-tax if net income exceeds Rs. 1 crore. It is subject to marginal relief (in the case of a co-operative society having a net income of exceeding Rs. 1 crore, the amount payable as income tax and 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).

Education cess - It is 2 per cent of income-tax and surcharge.

Secondary and higher education cess : It is 1 per cent of income-tax and surcharge.



Alternate minimum tax - Tax payable by a co-operative society cannot be less than 18.5 per cent (+SC+EC + SHEC) of "adjusted total income" as per section 115JC.

Local authorities - Local authorities are taxable at the rate of 30 per cent.

Surcharge - Surcharge is 12 per cent of income-tax if net income exceeds Rs. 1 crore. It is subject to marginal relief (in the case of a local authority having a net income of exceeding Rs. 1 crore, the amount payable as income tax and 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).

Education cess - It is 2 per cent of income-tax and surcharge.

Secondary and higher education cess : It is 1 per cent of income-tax and surcharge.



Alternate minimum tax - Tax payable cannot be less than 18.5 per cent (+SC+EC+SHEC), of "adjusted total income" as per section 115JC

Tax rates specified in the Income-tax Act - The following incomes are taxable at the rates specified by the Income-tax Act and not at the rates :

Section

Income

Income-tax rates

(1)

(2)

(3)

111A

Short-term capital gains

15

112

Long-term capital gains

20

115A(1) (a)(i)

Dividend received by a foreign company or a non-resident non- corporate assessee [*it is not applicable in the case of dividends referred to in section 115-O]

20*

115A(1) (a)(ii)

Interest received by a foreign company or a non-resident non-corporate assessee from Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency

20

115A(1) (a)(iia)

Interest received from an infrastructure debt fund referred to in section 10(47)

5

115A(1) (a)(iiaa)

Interest received from an Indian company specified in section 194LC

5

115A(1) (a)(iiab)/ (iiac)

Interest of the nature and extent referred to in section 194LD or section 194LBA

5

115A (1)(b)

Royalty or fees for technical services (not referred to in section 44DA) received by a foreign company or non-resident non-corporate assessee from an Indian concern or Government in pursuance of an agreement approved by the Central Government if such agreement is made at any time after March 31, 1976

10

115AB

Income of an overseas financial organisation on transfer of units purchased in foreign currency being long-term capital gains

10

115AC

Income from bonds or Global Depository Receipts1 or on bonds or Global Depository Receipts1 of a public sector company sold by the Government and purchased in foreign currency or long-term capital gains arising from their transfer *[not applicable in the case of dividends referred to in section 115-O]

10*

115ACA

Income from Global Depository Receipts held by a resident individual who is an employee of an Indian company engaged in information technology software/services


? Dividend [other than dividend referred to in section 115-O] on global Depository Receipts issued under employees stock option scheme and purchased in foreign currency

10


? Long-term capital gain on transfer of such receipts

10

115AD

Income in respect of securities received by a Foreign Institutional Investor as specified1 by the Government


? Short-term capital gain covered by section 111A

15


?Any other short-term capital gain

30


?Long-term capital gain

10


?Interest referred to in section 194LD

5


?Other income [*not applicable in the case of dividends referred to in section 115-O]

20*

115B

Profits and gains of life insurance business

12.5

115BA

Income of certain domestic companies (applicable from the assessment year 2017-18)

25

115BB

Winnings from lotteries, crossword puzzles, or race including horse race (not being income from the activity of owning and maintaining race horse) or card game and other game of any sort or from gambling or betting of any form or nature

30

115BBA(1) (a)/(b)

Income of a non-resident foreign citizen sportsman for participation in any game in India or received by way of advertisement or for contribution of articles relating to any game or sport in India or income of a non-resident sport association by way of guarantee money

20

115BBA(1) (c)

Income of non-resident foreign citizen (being an entertainer) for performance in India

20

115BBC

Anonymous donation

30

115BBD

Income of an Indian company by way of dividends declared, distributed or paid by a specified foreign company (in which the Indian company holds 26 per cent or more of equity share capital)

15

115BBDA

Aggregate dividend received by a resident individual/HUF/firm from a domestic companies in excess of Rs. 10 lakh [excluding deemed dividend under section 2(22)(e)] (applicable from the assess- ment year 2017-18)

10

115BBE

Income referred to in sections 68, 69, 69A, 69B, 69C and 69D

30

115BBF

Income by way of royalty in respect of a patent developed and registered in India (received by a resident assessee who is a patentee) (applicable from the assessment year 2017-18)

10

115E

Income from foreign exchange assets and capital gains of non-resident Indian


a. income from foreign exchange asset [*not applicable in the case of dividends referred to in section 115-O]

20*

b. long-term capital gain

10

115JB

Minimum alternate tax


- Book profit of a company (not being a company given below)

18.5


- Book profit of a company located in an International Financial Services Centre and derives its income solely in convertible foreign exchange (applicable from the assessment year 2017-18).

9

115JC

Alternate minimum tax in the case of any non-corporate taxpayer

18.5

115TD

Accreted income of certain trusts and institutions (applicable from June 1, 2016) [*taxable at maximum marginal rate (MMR) of tax which is 35.535 per cent]

MMR*

115UB(4)

Business income of a investment fund -

?Where investment fund is a domestic company or firm

30


?Where investment fund is a foreign company

40


? Where investment fund is any other person [*taxable at maximum marginal rate (MMR) of tax which is 34.608 per cent (assessment year 2016-17) or 35.535 per cent (assessment year 2017-18)]

MMR*

161(1A)

Profits and gains of a business in the case of a trust

30

164

Income of private discretionary trust where shares of beneficiaries are indeterminate

30

164A

Income of an oral trust

30

167A

Income of a firm

30

167B

Income of an association of persons or body of individuals if shares of members are unknown

30

167B(2)

Income of an association of persons or body of individuals if total income of any member (excluding share from the association or body) exceeds the maximum amount not chargeable to tax [*if total income of any member of the association or body is chargeable to tax at a rate higher than 34.608 per cent (for the assessment year 2016-17) or 35.535 per cent (for the assessment year 2017-18), then tax shall be charged on that portion of the total income of the association/body which is relatable to the share of such member at such higher rate and the balance of the total income is taxable at a rate of 34.608 per cent (for the assessment year 2016-17) or 35.535 per cent (for the assessment year 2017-18)]

30*

Notes :

1.


Surcharge - The above income-tax rates are subject to surcharge. Surcharge is calculated as a percentage (given below) of income-tax


Assessment year 2016-17

Assessment year 2017-18

If total income is
up to Rs. 1 crore

If total income is
in the range
of Rs. 1 crore
- Rs. 10 crore

If total income
is above
Rs. 10 crore

If total income
is up to Rs. 1 crore

If total income is in
the range of
Rs. 1 crore - Rs. 10 crore

If total income
is above
Rs. 10 crore

Individuals/HUF/AOP/BOI/artificial juridical person

Nil

12%

12%

Nil

15%

15%

Firm

Nil

12%

12%

Nil

12%

12%

Co-operative society

Nil

12%

12%

Nil

12%

12%

Local authority

Nil

12%

12%

Nil

12%

12%

Domestic company

Nil

7%

12%

Nil

7%

12%

Foreign company

Nil

2%

5%

Nil

2%

5%



or book profit (for the purpose of section 115JB) or adjusted total income (for the purpose of section 115JC).

2.


Education cess -2 per cent of income-tax and surcharge

3.


Secondary and higher education cess : 1 per cent of income-tax and surcharge.

9 per cent, if the assessee is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange (applicable from the assessment year 2017-18).

These rates are subject to surcharge, education cess and secondary and higher education cess [see Notes 1, 2 and 3 at the end of Table].

In some cases, tax rate is 10%.

1. Issued by an Indian company in accordance with the Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993/Issue of Foreign Currency Exchangeable Bonds Scheme, 2008.

An employee of an Indian company engaged in specified knowledge based industry or service or an employee of its subsidiary engaged in specified knowledge based industry or service.

1. For notified Foreign Institutional Investor, see Taxmann's Direct Taxes Circulars, 2011 edition.

Under section 115BA, a domestic company (which satisfies the following conditions) may opt for tax rate of 25 per cent -

-


It is a set-up and registered on or after March 1, 2016.

-


The company is not engaged in any business other than the business of manufacture or production of any article or thing and research in relation to (or distribution of) such article or thing manufactured or produced by it.

-


Total income of the company is computed without claiming additional depreciation and deduction under sections 10AA, 32AC, 32AD, 33AB, 33ABA, 35(1)(ii)/(iia)/(iii)/35(2AA)/(2AB), 35AC, 35AD, 35CCC, 35CCD, sections 80H to 80TT (not being section 80JJAA).

-


Total income of the company is calculated without adjusting brought forward loss from any earlier year (if such loss pertains to any deduction under the aforesaid sections). Moreover, such loss will not be carried forward.

-


This option shall be exercised on or before the due date of furnishing the first of the returns of income, which the company is required to furnish under the Act. Once the company has exercised the option for any previous year, it cannot be subsequently withdrawn for the same or any other previous year.

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