Budget 2017 - 18 : DIRECT TAXES -
RATES OF INCOME-TAX Full Details ..!
DIRECT TAXES
A. RATES OF INCOME-TAX
I. Rates of income-tax in respect of income
liable to tax for the
assessment year 2017-18.
In respect of income of all categories of
assessees liable to tax for the assessment year 2017-18, the rates of
income-tax have been specified in Part I of the First Schedule to the Bill.
These are the same as those laid down in Part III of the First Schedule to the
Finance Act, 2016 as amended by the Taxation Laws (Second Amendment) Act, 2016
(No.48 of 2016), for the purposes of computation of “advance tax“, deduction of
tax at source from “Salaries“ and charging of tax payable in certain cases.
(1) Surcharge on income-tax The amount of
income-tax shall be increased by a surcharge for the purposes of the Union,
(a)
in the case of every individual 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, at the rate of fifteen per cent. of such income-tax; and
(b) in the case of cooperative societies, firms or local authorities, at the
rate of twelve per cent. of such income-tax; having total income exceeding one
crore rupees.
However, marginal relief shall be allowed in all
these cases to ensure that the total amount payable as income-tax and surcharge
on total income exceeding 1 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.
In the case of persons mentioned in (a) and (b)
above having total income chargeable to tax under section 115JC of the Act and
where such income exceeds one crore rupees, surcharge at the rate mentioned
above shall be levied and marginal relief shall also be provided.
(c ) in the case of a domestic company ,(i)
having total income exceeding one crore rupees but not exceeding ten crore
rupees, the amount of income-tax computed shall be increased by a surcharge for
the purposes of the Union calculated at the rate of seven per cent. of such
income tax; (ii) having total income exceeding ten crore rupees, the amount of
income-tax computed shall be increased by a surcharge for the purposes of the
Union calculated at the rate of twelve per cent. of such income-tax.
(d) in the case of a company , other than a
domestic company ,(i) having total income exceeding one crore rupees but not
exceeding ten crore rupees, the amount of income-tax computed shall be
increased by a surcharge for the purposes of the Union calculated at the rate
of two per cent. of such income tax; (ii) having total income exceeding ten
crore rupees, the amount of income-tax computed shall be increased by a
surcharge for the purposes of the Union calculated at the rate of five per
cent. of such income tax.
However, marginal relief shall be allowed in all
these cases to ensure that 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.
Also, in the case of every company having total
income chargeable to tax under section 115JB of the Act and where such income
exceeds one crore rupees but does not exceed ten crore rupees, or exceeds ten
crore rupees, as the case may be, surcharge at the rates mentioned above shall
be levied and marginal relief shall also be provided.
(e) In other cases (including sections 115-O,
115QA, 115R, 115TA or 115TD), the surcharge shall be levied at the rate of
twelve per cent.
Education Cess For assessment year 2017-18
(2) Education Cess For assessment year 2017-18,
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, in all cases. No marginal relief shall be
available in respect of such Cesses.
II. Rates for deduction of income-tax at source
during the financial year 2017-18 from certain incomes other than “Salaries“.
The rates for deduction of income-tax at source
during the financial year 2017-18 from certain incomes other than “Salaries“
have been specified in Part II of the First Schedule to the Bill. The rates for
all the categories of persons will remain the same as those specified in Part
II of the First Schedule to the Finance Act, 2016, for the purposes of
deduction of income-tax at source during the financial year 2016-17.
(1) Surcharge The amount of tax so deducted, in
the case of a non-resident person (other than a company), shall be increased by
a surcharge,
(i) in case of an individual, Hindu undivided family , association
of person, body of individual or artificial juridical person;
(a) at the rate of ten per cent. of such tax,
where the income or the aggregate of such incomes paid or likely to be paid and
subject to the deduction exceeds fifty lakh rupees but does not exceed one
crore rupees;
(b) at the rate of fifteen per cent. of such tax,
where the income or the aggregate of such incomes paid or likely to be paid and
subject to the deduction exceeds one crore rupees; and (ii) in case of a firm
or cooperative society , at the rate of twelve per cent. of such tax, where the
income or the aggregate of such incomes paid or likely to be paid and subject
to the deduction exceeds one crore rupees.
The amount of tax so deducted, in the case of a
company other than a domestic company , shall be increased by a surcharge,(i)
at the rate of two per cent. of such tax, where the income or the aggregate of
such incomes paid or likely to be paid and subject to the deduction exceeds one
crore rupees but does not exceed ten crore rupees;
(ii) at the rate of five per
cent. of such tax, where the income or the aggregate of such incomes paid or
likely to be paid and subject to the deduction exceeds ten crore rupees. No
surcharge will be levied on deductions in other cases.
(2) Education Cess “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 , of income
tax including surcharge wherever applicable, in the cases of persons not
resident in India including company other than a domestic company .
III. 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 2017-18.
The rates for deduction of income-tax at source
from “Salaries“ during the financial year 2017-18 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 2017-18 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
A. 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:
FY 2017-18
Below 60 years
Upto Rs. 2,50,000 Nil.
Rs. 2,50,001 to Rs. 5,00,000 5 per cent.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.
(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,
Upto Rs.3,00,000 Nil.
Rs. 3,00,001 to Rs. 5,00,000 - 5 per cent.
Rs. 5,00,001 to Rs. 10,00,000 - 20 per cent.
Above Rs. 10,00,000 - 30 per cent.
(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,
Upto Rs. 5,00,000 Nil.
Rs. 5,00,001 to Rs. 10,00,000 20 per cent.
Above Rs. 10,00,000 30 per cent.
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,
(i) ten per cent. of such income-tax in case of a
person having a total income exceeding fifty lakh rupees but not exceeding one
crore rupees; and
(ii) fifteen per cent. of such income-tax in case
of a person having a total income exceeding one crore rupees.However, in case
of (i) above, the total amount payable as income-tax and surcharge on total
income exceeding fifty lakh rupees but not exceeding one crore rupees, the
total amount payable as income-tax and surcharge on such income shall not
exceed the total amount payable as income-tax on a total income of fifty lakh
rupees by more than the amount of income that exceeds fifty lakh rupees.
Further, in case of (ii) above, 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.
B. 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 2016-17.The
amount of income-tax shall be increased by a surcharge at the rate of twelve
per cent.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.
C. 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 2016-17.The amount of income-tax shall be increased by a
surcharge at the rate of twelve per cent. 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.
D. Local authorities The rate of income-tax in
the case of every local authority has been 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 2016-17. The amount of income-tax shall
be increased by a surcharge at the rate of twelve per cent. 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.
E. Companies The rates of income-tax in the case
of companies have been 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 five per cent. of the total income if the total turnover or
gross receipts of the previous year 2015-16 does not exceed fifty crore rupees
and in all other cases the rate of Income-tax shall be thirty per cent. of the
total income.
In the case of company other than domestic company , the rates of
tax are the same as those specified for the financial year 2016-17.
Surcharge at the rate of seven per cent shall
continue to 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 per cent shall continue to 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 per cent
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, 115QA,
115R, 115TA or 115TD), the surcharge shall be levied at the rate of twelve per
cent.
For financial year 2017-18, 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 & First Schedule]
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