India Income Tax Slab for Financial Year 2016-17

Indian Budget 2016 is finally out. Personal Financial enthusiasts who were expecting much favors from the Union Financial Minister regarding India Income Tax Slab for Financial Year 2016-17 must be quite disappointed. The reason being there is no change in the Income Tax Slab for Financial Year 2016-17.

The Union Finance Minister has not revised Income Tax Slab Rates for the Financial Year 2016-17. The same Income Tax Slab Rates that were applicable for Financial Year 2015-16 will continue to be applicable for Financial Year 2016-17 as well.

So, it’s time to begin your Financial Planning. Here, we have presented a detailed overview of India Income Tax Slabs for Financial Year 2016-17 which will clear all your doubts regarding tax slab for different categories of taxpayers.

This presentation lists down India Income Tax Slabs for each and every category of tax payers and thus makes easy for you to do tax planning for the financial year 2016-17.

Income Tax Slab

India Income Tax Slab Rates for Financial Year 2016-17

Actually, there are different categories of taxpayers and India Income Tax Slab Rates are different for different categories of tax payers.

So, it’s important to know the different categories of taxpayers. For your understanding, I have presented the different categories for the purpose of Income Tax Slab Rates.

Basically, there are two categories for the purpose of Income Tax Slab Rates. This includes:

A. Individuals and HUF
B. Businesses

Further up, “Individuals and HUF” consists of the following categories:

1. Male Individuals below 60 years of Age and HUF
2. Female Individuals below 60 years of Age.
3. Senior Citizens above 60 years of Age.
4. Super Senior Citizens above 80 years of Age.

And, “Businesses” consists of the following categories:

1. Co-operative Society
2. Firms, Local Authorities and Domestic Company

Description of Income Tax Slab Rates

A. For Individuals & HUF

Here you will find a description of the Income Tax Slabs that are applicable for the Financial Year 2015-16 as well as Financial Year 2016-17.
Education Cess @2% and SHEC @1% shall be levied on the computed Tax using the Income Tax Slab Rates, which is described below when you file your Income Tax Return. It should be noted that in the case of “Individuals and HUF” there is no Surcharge.

Here, it is important to mention that Union Budget 2013 had introduced Section 87A by which Income Tax Rebate of Rs. 2000 applied to all individuals whose income is less than 5 lakh per year.

However, the Union Budget of 2016 has increased this rebate from Rs. 2000 to Rs. 5000 under section 87A. This increased limit is applicable for Financial Year 2016-17 i.e. Assessment Year 2017-18, which begins from 1st April 2016.

Taxpayers are often confused between the terms such as Income Tax Exemptions, Income Tax Deductions, and Income Tax Rebate. So, we thought it right to introduce these terms for the sake of your knowledge.

Income Tax Exemptions: These are allowed to be claimed from a specific of income and not from the Gross Total Income.

Income Tax Deductions: These are allowed to be claimed from total income under each head and also from Gross Total Income.

Income Tax Rebates: These are items which are allowed to be claimed from the total tax payable.

1. Income Tax Slab for Males below 60 years of Age & HUF

Income Tax Rate = NIL (Where Total Income does not exceed Rs. 2,50,000)

Income Tax Rate = 10% of the Amount by which it exceeds Rs. 250000. (It is applicable where the Total Income exceeds Rs. 250000 but does not exceed Rs. 5,00,000)

Income Tax Rate = 20% of the Amount by which it exceeds Rs. 500000. (It is applicable where the Total Income exceeds Rs. 250000 but does not exceed Rs. 10,00,000)

Income Tax Rate = 30% of the Amount by which it exceeds Rs. 10,00,000. (It is applicable where the Total Income is above Rs. 10,00,000)

2. Income Tax Slab for Female Individuals who are below 60 years of Age

Here, it should be noted that India Income Tax slabs are the same for Males and Females. They have been listed below:

Income Tax Rate = NIL (Where Total Income does not exceed Rs. 2,50,000)

Income Tax Rate = 10% of the Amount by which it exceeds Rs. 250000. (It is applicable where the Total Income exceeds Rs. 250000 but does not exceed Rs. 5,00,000)

Income Tax Rate = 20% of the Amount by which it exceeds Rs. 500000. (It is applicable where the Total Income exceeds Rs. 250000 but does not exceed Rs. 10,00,000)

Income Tax Rate = 30% of the Amount by which it exceeds Rs. 10,00,000. (It is applicable where the Total Income is above Rs. 10,00,000)

3. Income Tax Slab for all Senior Citizens above 60 years of Age

Income Tax Rate = NIL (Where Total Income does not exceed Rs. 3,00,000)

Income Tax Rate = 10% of the Amount by which it exceeds Rs. 300000. (It is applicable where the Total Income exceeds Rs. 300000 but does not exceed Rs. 5,00,000)

Income Tax Rate = 20% of the Amount by which it exceeds Rs. 500000. (It is applicable where the Total Income exceeds Rs. 500000 but does not exceed Rs. 10,00,000)

Income Tax Rate = 30% of the Amount by which it exceeds Rs. 10,00,000. (It is applicable where the Total Income is above Rs. 10,00,000

4. Income Tax Slab for all Senior Citizens above 80 years of Age

Income Tax Rate = NIL (It is applicable where Total Income does not exceed Rs. 5,00,000)

Income Tax Rate = 20% of the Amount by which it exceeds Rs. 5,00,000
(It is applicable when the Total Income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000)

Income Tax Rate = 30% of the Amount by which it exceeds Rs. 10,00,000. (It is applicable when the Total Income exceeds Rs. 10,00,000).
B. Income Tax Slabs for Businesses

Herein, we have listed out India Income Tax Slabs for Businesses which are applicable for Financial Year 2016-17. It should also be noted that Education Cess @ 2% and SHEC @ 1% is applicable on the Income Tax so computed.

1. For Cooperative Society

Income Tax Rate = 10% of the Income. This is applicable when the Total Income does not exceed Rs. 10,000.

Income Tax Rate = 20% of the Amount by which it exceeds Rs. 10,000. It is applicable when the Total Income exceeds Rs. 10,000 but does not exceed Rs. 20,000.

Income Tax Rate = 30% of the Amount by which it exceeds Rs. 20,000. It is applicable when the Total Income exceeds Rs. 20,000.

2. Income Tax Slab for Firms, Local Authorities and Domestic Company

In this case, the Income Tax Slab Rates are not applicable. However, Income Tax @ 30% flat shall be computed on the Total Income. The surcharge is only levied on Total Income Tax of Domestic Companies @ 5% when the Total Income of Domestic Company exceeds Rs. 1 Crore.

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