On 28th of February 2015 Finance Minister Shri Arun Jaitley announced the budget of India for the Financial Year 2015-16. The Income Tax slabs/rates for the the Financial Year 2015-16 and Assessment Year 2016-17 is discussed below:
(I) For Individuals aged below 60 years (including Woman Assessees or any NRI/ HUF/ AOP/ BOI/ AJP):
|
Income |
Tax Rate |
| Upto 250,000 | Nil |
| 250,000 to 500,000 | 10% of the amount exceeding 250,000Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A – 10% of taxable income upto a maximum of Rs. 2000/-. |
| 500,000 to 1,000,000 | Rs.25,000 + 20% of the amount exceeding 500,000 |
| 1,000,000 & above | Rs.125,000 + 30% of the amount exceeding 1,000,000 |
(II) For Senior Citizen (Individuals aged 60 years and above but below 80 years):
|
Income |
Tax Rate |
| Upto 300,000 | Nil |
| 300,000 to 500,000 | 10% of the amount exceeding 300,000 |
| 500,000 to 1,000,000 | Rs.20,000 + 20% of the amount exceeding 500,000 |
| 1,000,000 & above | Rs.120,000 + 30% of the amount exceeding 1,000,000 |
(III) For Super Senior Citizen (For Individuals aged 80 years and above):
|
Income |
Tax Rate |
| Upto 500,000 | Nil |
| 500,000 to 1,000,000 | 20% of the amount exceeding 500,000 |
| 1,000,000 & above | Rs.100,000 + 30% of the amount exceeding 1,000,000 |
Surcharge : 10% of the Income Tax, where taxable income is more than Rs. 1 crore.
Education Cess : 3% of the total of Income Tax and Surcharge.
Tax Credit U/S 87A: Finance Bill 2015 says nothing on the Section 87A. Hence this provision continues for AY 2016-17 as well and provides a rebate of Rs 2,000 for individual whose taxable income doesn’t exceed Rs. 500,000.
(IV) For Co-operative Society
|
Income |
Tax Rate |
|||
|
10% of the income. | |||
|
Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-. | |||
|
Rs. 3.000/- + 30% of the amount by which the taxable income exceeds Rs. 20,000/-. |
Surcharge : Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable)
Education Cess : 3% of the Income Tax and Surcharge.
(V) For Firm
|
Income Tax Rate |
Surcharge |
Education Cess |
| 30% of the taxable income. | Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable) | 3% of the Income Tax and Surcharge. |
(VI) For Local Authority
|
Income Tax Rate |
Surcharge |
Education Cess |
| 30% of the taxable income. | Where taxable income is more than Rs. 1 crore, Surcharge will be 10% of the Income Tax. (Marginal Relief in Surcharge, if applicable) | 3% of the Income Tax and Surcharge. |
(VII) For Domestic Company
|
Sl No. |
Particulars |
Tax Rate |
Surcharge |
Education Cess |
Effective Tax |
|
1. |
Domestic companies (with total taxable income less than 1 Cr.) |
30% |
– |
3% |
30.90% |
|
2. |
Domestic companies (with total taxable income more than 1 Cr. but less than 10 Cr.) |
30% |
7% |
3% |
33.063% |
|
3. |
Domestic companies (with total taxable income more than 10 Cr. |
30% |
12% |
3% |
34.608% |
(VIII) For Company other than a Domestic Company or Foreign Company
|
Sl No. |
Particulars |
Tax Rate |
Surcharge |
Education Cess |
Effective Tax |
|
1. |
Foreign companies (with total income less than 1 Cr.) |
40% |
– |
3% |
41.20% |
|
2. |
Foreign companies (with total income more than 1 cr. but less than 10 Cr.) |
40% |
2% |
3% |
42.024% |
|
3. |
Other foreign companies |
40% |
5% |
3% |
43.26% |
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