Income tax slab rates 2015-16

Income tax slab rates for financial year 2015-16 (assessment year 2016-17) are same as the income tax slab rate for Financial year 2014-15 (assessment year 2015-16).

I. Income Tax Slab rate for Individuals, Hindu Undivided Families, Association of Persons and Body of Individuals for AY 2016-2017/FY 2015-2016

Total IncomeTax Rate
Upto Rs. 250,000*          Nil
250,001 to 500,000       10%
500,001 to 10,00,000       20%
Above Rs. 10,00,000       30%

*In the case of a resident individual of sixty years or more but less than eighty years, the basic exemption limit is INR 300,000.

The category of women below the age of 65 years has been removed.

In the case of a resident individual of the age of eighty years or above

Total Income    Tax Rate
Upto Rs. 500,000*          Nil
500,001 to 10,00,000       20%
Above Rs. 10,00,000       30%

Surcharge is Nil

Education cess is applicable @ 3 percent and SHEC (Secondary and higher education cess) @ 1 % shall be levied on the income tax

Note : If in the above case taxable income is less than Rs.500,000 a rebate maximum if Rs. 2,000 is allowable under section 87A which is as follow:

After computing the tax as per Section 87A on the income which is below Rs. 5,00,000 assessee can reduce Rs. 2,000 from the amount of tax so calculated.

The benefit of Section 87A is not available to the person who is of aged more than 80 years as their income upto Rs. 5,000,000 is already exempt from income tax.

II. For Partnership Firms

•  Partnership Firms are taxable @ 30 percent

•  Surcharge –

if Income upto 1 Crore  Nil

1 Crore 12%

•  Education cess is applicable @ 3 percent on income tax

III. For Domestic Companies

•  Domestic companies are taxable @ 30%

•  Surcharge

if Income upto 1 Crore  Nil

1 Crore 5%

More than 10 Crores 10%

•  Education cess is applicable @ 3 percent on income tax (inclusive of surcharge, if any)

IV. For Foreign Companies

•  Foreign companies are taxable @ 40 percent

•  Surcharge is applicable @ 2 percent if total income is in excess of Rs. 1 crore

•  Education cess is applicable @ 3 percent on income tax (inclusive of surcharge, if any)

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