Income Tax Rates for current year 2015-2016 (Assessment year 2016-2017)

Income Tax Rates for current year 2015-2016 (Assessment year 2016-2017)

Income Tax Rates for Assessment year 2016-2017:

Income Tax Rates/Slab for Assessment Year 2016-17	Rates/ %age
Up to 2,50,000 Up to 2,50,000 (for women) Up to 3,00,000 (for resident individual of 60 years till 80 years)	Nil
250,001 – 5,00,000 Up to 500,000 (for resident individual of 80 years and above, Tax is nil)	10% Nil
5,00,001 – 10,00,000	20%
10,00,001 upwards	30%

Education Cess of 3% is also applicable to Income Tax computed as per above slab.

There is no change in Income tax rates for year 2015-16. It is same as last year 2014-15 (AY 2015-16).

Source: http://incometaxreturnindia.com/

 

Income tax rates for Financial year 2015-2016

Income tax rates for Financial year 2015-2016

1). Individual resident aged below 60 years (i.e. born on or after 1st April 1955) or any NRI / HUF / AOP / BOI / AJP*

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 2,50,000/-.	NIL
ii.	Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.	10% of amount by which the total income exceeds Rs. 2,50,000/-. Less ( in case of Resident Individuals only ) : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.	Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv.	Where the total income exceeds Rs. 10,00,000/-.	Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore  (if applicable then Marginal Relief in Surcharge).

Education Cess : 3% of the total of Income Tax and Surcharge.

* Abbreviations used :   NRI - Non Resident Individual; HUF - Hindu Undivided Family; AOP - Association of Persons; BOI - Body of Individuals; AJP - Artificial Judicial Person

2). Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year (i.e. born on or after 1st April 1934 but before 1st April 1954)

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 3,00,000/-.	NIL
ii.	Where the total income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/-	10% of the amount by which the total income exceeds Rs. 3,00,000/-. Less : Tax Credit u/s 87A - 10% of taxable income upto a maximum of Rs. 2000/-.
iii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	Rs. 20,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv.	Where the total income exceeds Rs. 10,00,000/-	Rs. 120,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

3). Individual resident who is of the age of 80 years or more at any time during the previous year (i.e. born before 1st April 1934).

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 5,00,000/-.	NIL
ii.	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-	20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iii.	Where the total income exceeds Rs. 10,00,000/-	Rs. 100,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

4). Co-operative Society

Income Tax :

	Income Slabs	Tax Rates
i.	Where the total income does not exceed Rs. 10,000/-.	10% of the income.
ii.	Where the total income exceeds Rs. 10,000/- but does not exceed Rs. 20,000/-.	Rs. 1,000/- + 20% of income in excess of Rs. 10,000/-.
iii.	Where the total income exceeds Rs. 20,000/-	Rs. 3.000/- + 30% of the amount by which the total income exceeds Rs. 20,000/-.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

5). Domestic Company

Income Tax : 30% of total income.

Surcharge : The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge

• At the rate of 5% of such income tax, provided that the total income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
• At the rate of 10% of such income tax, provided that the total income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.

6). Firm

Income Tax : 30% of total income.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

7). Local Authority

Income Tax : 30% of total income.

Surcharge : 10% of the Income Tax, where total taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

8). Company other than a Domestic Company

Income Tax :

• @ 50% of on so much of the total income as consist of 
• (a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976; or
• (b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, and where such agreement has, in either case, been approved by the Central Government.
• @ 40% of the balance.

Surcharge :

The amount of income tax as computed in accordance with above rates, and after being reduced by the amount of tax rebate shall be increased by a surcharge as under

• At the rate of 2% of such income tax, provided that the total income exceeds Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)
• At the rate of 5% of such income tax, provided that the total income exceeds Rs. 10 crores.

Education Cess : 3% of the total of Income Tax and Surcharge.

Marginal Relief : When an assessee's taxable income exceeds Rs. 1 crore, he is liable to pay Surcharge at prescribed rates mentioned above on Income Tax payable by him. However, the amount of Income Tax and Surcharge shall not increase the amount of income tax payable on a taxable income of Rs. 1 crore by more than the amount of increase in taxable income.

Example :

In case of an individual assess (< 60 years) having taxable income of Rs. 1,00,01,000/-

1.	Income Tax	Rs. 28,30,300
2.	Surcharge @10% of Income Tax	Rs. 2,83,030
3.	Income Tax on income of Rs. 1 crore	Rs. 28,30,000
4.	Maximum Surcharge payable (Income over Rs. 1 crore less income tax on income over Rs. 1 crore)	Rs. 700/- (1000 - 300)
5.	Income Tax + Surcharge payable	Rs. 28,31,000
6.	Marginal Relief in Surcharge	Rs. 2,82,330/- (2,83,030 - 700)

 Note: There is no change in Income tax rates for year 2015-16. It is same as last year 2014- 2015 (AY 2015-16).

Source: http://www.taxdost.com/

 

 

Highlights of Union Budget for 2015-16

Highlights of Union Budget for 2015-16

 

Budget 2015-16 Highlights:

• GDP growth to be 8-8.5% in 2015-16
• Embarked on GST and JAM Trinity to use bank accounts, Aadhar and Mobile number to transfer government benefits
• Current account deficit below 1.3 percent of GDP
• Aiming for double digit growth rate, achievable soon
• Expects consumer inflation to remain close to 5 percent by March, opening room for more monetary policy easing
• Expects to implement goods and services tax by April 2016
• We will move to amend the RBI Act this year to form Monetary Policy Committee: Jaitley
• 50 lakh toilets constructed in 2014-15; on the way to achieve target of 6 crore toilets
• Coal bearing states will get several lakhs of crores of rupees as royalty following transparent auction process 
• FM Jaitley says outlook for India positive, reiterates partnership with states
• India is set for a faster growth trajectory
• Real GDP growth to jump to 7.4%, making India the largest growing economy in the world
• The govt wants to improve quality of life and to pass benefits to common man
• GST will put in place a state of art taxation system
• The rupee has become stronger by 6.4% 
• People of India have voted for quick change, faster growth, stable economy, we have lived up to their trust
• The credibility of Indian economy has been re-established
• Jan Dhana Yojana makes our aim of financial inclusion visible
• Three achievements of government: Success of Jan Dhan Yojana, coal auctions, Swach Bharat
• We inherited a sentiment of doom and gloom and the investor community had almost written us off
• World says it’s India’s chance to fly
• We are a round the clock, round the year government
• Govt has embraced states as equal partners in growth: FM

Source: http://www.taxdost.com/