Assessment Year 2016-2017
There is no change in
the basic tax rate and exemption limit for Individual, Hindu Undivided Family,
Association of Person, Body Of Individuals and Artificial Juridical Person in
Assessment Year 2016-17 in Comparison to A.Y. 2015-16.
Further There is no change
in basic tax rate of Co-operative Society, Firms, Local Authorities and
Companies. However, it is proposed to reduce the basic tax rate in the case of
Companies from 30% to 25% over the next four years, starting from next
financial year i.e. FY 2016-17.
There is change in
Surcharge which is as under :
|
Person
|
Present
Surcharge Rate |
Proposed
Surcharge Rate |
|
Other than Company –
|
||
|
– Having Total
Income exceeding
Rs. 1 crore |
10%
|
12%
|
|
Domestic Company‑
|
||
|
–
Having Total Income exceeding Rs. 1
crore but less
than Rs. 10 crore
|
5%
|
7%
|
|
–
Having Total Income exceeding
Rs. 10 crore |
10%
|
12%
|
|
Foreign Company‑
|
||
|
–
Having Total Income exceeding Rs. 1
crore but less
than Rs. 10 crore
|
2%
|
2%
|
|
–
Having Total Income exceeding
Rs. 10 crore |
5%
|
5%
|
There is no change in
the rate of Education Cess and Secondary & Higher Education Cess on Income
Tax and accordingly rate of 2% and 1% respectively on the amount of tax
computed inclusive of surcharge, wherever applicable would be applied in all
cases.
A. Normal tax rates
applicable to an individual
The normal tax rates
applicable to a resident individual will depend on the age of the individual.
However, in case of a non-resident individual the tax rates will be same
irrespective of his age. For the purpose of ascertainment of the applicable tax
slab, an individual can be classified as follows:
·
Resident individual
below the age of 60 years. i.e. born on or after 1.4.1956
·
Resident individual of
the age of 60 years or above at any time during the year but below the age of
80 years. (i.e. born during 1-4-1936 to 3 1-3-1956)
·
Resident individual of
the age of 80 years or above at any time during the year. i.e. born before
1.4.1936
·
Non-resident
individual irrespective of the age.
i. individual below the age of 60 years i.e. born on or
after 1.4.1956, Non-resident individual irrespective of age,
Resident/Non-Resident Hindu undivided family, association of persons, body of
individuals, artificial juridical person.
Tax Slab
|
Net income range
|
Income-tax rates
|
Education Cess
|
Secondary and higher
Education Cess
|
|
Up to Rs. 2,50,000
|
Nil
|
Nil
|
Nil
|
|
Rs. 2,50,000 – Rs.
5,00,000
|
10% of (total income minusRs.
2,50,000) [*]
|
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)
|
2% of income-tax
|
1% of income-tax
|
|
Above Rs. 10,00,000
|
Rs. 1,25,000 + 30%
of (total income minus Rs. 10,00,000)
|
2% of income-tax
|
1% of income-tax
|
Tax Rate After Considering Surcharge# and Cess Based on Income
Level-
|
Particulars
|
Income Level
|
||||
|
Taxable Income
|
Rs. 2,50,000
|
Rs. 2.50 Lakh to 5
Lakh
|
Rs. 5 Lakh to
Rs. 10 Lakh
|
Rs. 10 Lakh to Rs. 1
Crore
|
Above Rs. 1 Crore
|
|
F.Y. 2014-15
|
Nil
|
10.30%
|
20.60%
|
30.90%
|
33.99%
|
|
F.Y 2015-16
|
Nil
|
10.30%
|
20.60%
|
30.90%
|
34.608%
|
(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
i.e. born during 1.4.1936 to 31.3.1956
|
Net income range
|
Income-tax rates
|
Education Cess
|
Secondary and higher Education
Cess
|
|
Up to Rs. 3,00,000
|
Nil
|
Nil
|
Nil
|
|
Rs. 3,00,000 – Rs.
5,00,000
|
10% of (total incomeminus Rs.
3,00,000) [*]
|
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) |
2% of income- tax
|
1% of income-tax
|
|
Above
Rs.
10,00,000 |
Rs. 1,20,000 + 30%
of (total income minus Rs. 10,00,000)
|
2% of income- tax
|
1% of income-tax
|
Tax Rate After Considering Surcharge# and Cess Based on Income
Level-
|
Particulars
|
Income Level
|
||||
|
Taxable Income
|
Rs. 3 lakh
|
Rs. 3 Lakh to Rs. 5
Lakh
|
Rs. 5 Lakh to
Rs. 10 Lakh
|
Rs. 10 Lakh to Rs. 1
Crore
|
Above Rs. 1 Crore
|
|
F.Y. 2014-15
|
Nil
|
10.30%
|
20.60%
|
30.90%
|
33.99%
|
|
F.Y 2015-16
|
Nil
|
10.30%
|
20.60%
|
30.90%
|
34.608%
|
(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 i.e. born before 1.4.1936
|
Net income range
|
Income-tax rates
|
Education Cess
|
Secondary
and
higher
Education
Cess |
|
Up to Rs. 5,00,000
|
Nil
|
Nil
|
Nil
|
|
Rs.
5,00,000 – Rs.
10,00,000 |
20% of (total incomeminus Rs.
5,00,000)
|
2% of income- tax
|
1% of income-tax
|
|
Above Rs. 10,00,000
|
Rs.
1,00,000 + 30% of (total
income minus Rs. 10,00,000) |
2% of income- tax
|
1% of income-tax
|
Tax Rate After
Considering Surcharge# and Cess Based on Income Level-
|
Particulars
|
Income Level
|
|||
|
Taxable Income
|
Rs. 5 Lakh
|
Rs. 5 Lakh to
Rs. 10 Lakh
|
Rs. 10 Lakh to Rs. 1
Crore
|
Above Rs. 1 Crore
|
|
F.Y. 2014-15
|
Nil
|
20.60%
|
30.90%
|
33.99%
|
|
F.Y 2015-16
|
Nil
|
20.60%
|
30.90%
|
34.608%
|
#Surcharge : Surcharge is levied @ 12% on the amount of income-tax where net
income exceeds Rs. 1 crore. In a case where surcharge is levied, EC of 2% and
SHEC of 1% will be levied on the amount of income-tax plus surcharge.
However, marginal relief is available from surcharge in such a
manner that in the case of a person having a net income 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.
AMT: In
the case of a non-corporate taxpayer to whom the provisions of Alternate
Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+SC+EC+SHEC)
of “adjusted total income” computed as per section 1 15JC. For provisions
relating to AMT refer tutorial on “MAT/AMT” in tutorial section.
[*] 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.
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