Income Tax Slab for FY 2015-16 AY 2016-17 ( individual)

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.