Income Tax Slab Rate & Deductions – AY 2016 -17 (FY 2015-16)

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 SlabIncome Tax Rate
Income upto Rs. 2,50,000Nil
Income between Rs. 2,50,001 – Rs. 500,00010% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000

For Women Below 60 Years Of Age

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000Nil
Income between Rs. 2,50,001 – Rs. 500,00010% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax SlabIncome Tax Rate
Income upto Rs. 3,00,000Nil
Income between Rs. 3,00,001 – Rs. 500,00010% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 80 years or more)

Income Tax SlabIncome Tax Rate
Income upto Rs. 5,00,000Nil
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000

Hindu Undivided Families (HUF)

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000Nil
Rs.2,50,000 to Rs.5,00,00010% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,00020% Income exceeding Rs. 5,00,000
Over Rs.10,00,00030% Income exceeding Rs. 10,00,000

Legal Entities Registered as Associations of Persons

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000Nil
Rs.2,50,000 to Rs.5,00,00010% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,00020% Income exceeding Rs. 5,00,000
Over Rs.10,00,00030% Income exceeding Rs. 10,00,000

Legal Entities Registered as Bodies of Individuals

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000Nil
Rs.2,50,000 to Rs.5,00,00010% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,00020% Income exceeding Rs. 5,00,000
Over Rs.10,00,00030% 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 SlabIncome Tax Slab Rate
Up to Rs.10,00010% Income
Rs.10,000 to Rs 20,00020% Income exceeding Rs. 10,000
Over Rs. 20,00030% Income exceeding Rs. 20,000

Also,

Surcharge:

  1. 2% of the income tax amount (If income is greater than Rs.1,00,00,000/-)
  2. 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)

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