Income Tax Slab Rate & Deductions – AY 2016 -17 (FY 2015-16)
What is Income Tax Slab?
Income tax is that percentage of income paid to the government by the taxpayers for the betterment of the public at large. This income is categorized into different groups on the basis of the amount of income. Each such group is known as a Tax Slab. Tax is charged at different rates on the range of income falling under different income tax slabs.
The Income Tax Act 1961 is the law that governs the provisions for our income tax.
The income tax rates are usually revised every year during the budget. Various deductions that are allowed to a taxpayer under Section 80C, Section 80D etc.
Income Tax Slab Rate
Following are the income tax slab rates and deductions for different categories of tax payers:
For Men Below 60 Years Of Age
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,001 – Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Women Below 60 Years Of Age
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 2,50,000 | Nil |
| Income between Rs. 2,50,001 – Rs. 500,000 | 10% of Income exceeding Rs. 2,50,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Senior Citizens (Age 60 years or more but less than 80 years)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 3,00,000 | Nil |
| Income between Rs. 3,00,001 – Rs. 500,000 | 10% of Income exceeding Rs. 3,00,000 |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
For Senior Citizens (Age 80 years or more)
| Income Tax Slab | Income Tax Rate |
|---|---|
| Income upto Rs. 5,00,000 | Nil |
| Income between Rs. 500,001 – Rs. 10,00,000 | 20% of Income exceeding Rs. 5,00,000 |
| Income above Rs. 10,00,000 | 30% of Income exceeding Rs. 10,00,000 |
Hindu Undivided Families (HUF)
| Income Tax Slab | Income Tax Slab Rate |
|---|---|
| Up to Rs.2,50,000 | Nil |
| Rs.2,50,000 to Rs.5,00,000 | 10% Income exceeding Rs. 2,50,000 |
| Rs.5,00,000 to Rs.10,00,000 | 20% Income exceeding Rs. 5,00,000 |
| Over Rs.10,00,000 | 30% Income exceeding Rs. 10,00,000 |
Legal Entities Registered as Associations of Persons
| Income Tax Slab | Income Tax Slab Rate |
|---|---|
| Up to Rs.2,50,000 | Nil |
| Rs.2,50,000 to Rs.5,00,000 | 10% Income exceeding Rs. 2,50,000 |
| Rs.5,00,000 to Rs.10,00,000 | 20% Income exceeding Rs. 5,00,000 |
| Over Rs.10,00,000 | 30% Income exceeding Rs. 10,00,000 |
Legal Entities Registered as Bodies of Individuals
| Income Tax Slab | Income Tax Slab Rate |
|---|---|
| Up to Rs.2,50,000 | Nil |
| Rs.2,50,000 to Rs.5,00,000 | 10% Income exceeding Rs. 2,50,000 |
| Rs.5,00,000 to Rs.10,00,000 | 20% Income exceeding Rs. 5,00,000 |
| Over Rs.10,00,000 | 30% Income exceeding Rs. 10,00,000 |
Partnership Firms
Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%
Local Authorities
Local Authorities are to be taxed at the rate of 30%.
Domestic Companies
Domestic Companies are to be taxed at the rate of 30%
Co-operative Societies
| Income Tax Slab | Income Tax Slab Rate |
|---|---|
| Up to Rs.10,000 | 10% Income |
| Rs.10,000 to Rs 20,000 | 20% Income exceeding Rs. 10,000 |
| Over Rs. 20,000 | 30% Income exceeding Rs. 20,000 |
Also,
Surcharge:
- 2% of the income tax amount (If income is greater than Rs.1,00,00,000/-)
- 5% of the income tax amount. Subject to marginal relief (If income is greater than Rs.10,00,00,000/-)
Education Cess: 2% extra (charged on the amount of income tax + surcharge being paid)
Secondary and Higher Education Cess: 1% extra (charged on the amount of income tax + surcharge being paid)