HomeIncome Tax

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Every Individual & business earn Income from India is liable to pay Income tax subject to a certain sum of marginal limit announced by the Finance Minister in the budget held at parliament.The Income tax is collected by the Income Tax department controlled by the Central Board Of Direct Taxes .The Income is chargeable to tax on Income he generates every year April to March Financial year and Assessable in the Assessment year (The next Financial year of Income Generation).

Income tax rate chart for FY 2016-17 & Assessment year 2017-18

Who are liable to pay Income Tax?

The Income tax is payable by

  1. Individuals
  2. Hindu Undivided Family
  3. Business Entities

Individuals and business entity is again classified based on ages and its nature. You findout the classification in the Income tax rate chart.

For HUF and individuals (less than 60 years old)

Tax Slabs Tax Rates
Income up to Rs.2.5 lakhs Nil
Income between Rs.2.5 lakhs and Rs.5 lakhs 10% of amount exceeding Rs.2.5 lakhs
Income between Rs.5 lakhs to Rs.10 lakhs 20% of amount exceeding Rs.5 lakhs
Income above Rs.10 lakhs 30% of amount exceeding Rs.10 lakhs

Senior citizens (individuals over 60 years old)

Tax Slabs Tax Rates
Income up to Rs.3 lakhs NIL
Income between Rs.3 lakhs and Rs.5 lakhs 10% of amount exceeding Rs.3 lakhs
Income between Rs.5 lakhs to Rs.10 lakhs 20% of amount exceeding Rs.5 lakhs
Income above Rs.10 lakhs 30% of amount exceeding Rs.10 lakhs

Super senior citizens (individuals over 80 years old)

Tax Slabs Tax Rates
Income up to Rs.5 lakhs NIL
Income between Rs.5 lakhs to Rs.10 lakhs 20% of amount exceeding Rs.5 lakhs
Income above Rs.10 lakhs 30% of amount exceeding Rs.10 lakhs

Co-operative societies

Tax Slabs Tax Rates
Income up to Rs.10,000 10% of income
Income between Rs.10,000 to Rs.20,000 20% of amount exceeding Rs.10,000
Income above Rs.20,000 30% of amount exceeding Rs.20,000

Firms, Local Authority and Domestic Company

Income Tax collected from the above category is not on slab rate but on flat 30% total income generated from the business.

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