Income Tax Slabs & Rates : AY 2016-17

Income Tax Slabs & Rates: AY 2016-17 corresponding to FY 2015-16 or PY 2015-16

Income Tax Slabs & Rates for AY 2016-17 corresponding to FY 2015-16 or PY 2015-16 for Individuals, HUFs, Companies, Firms, Co-operative Societies, etc., are as under:

A. Income Tax Slabs – Individuals and HUFs

Income Tax Slabs
(Rates in %)
Very Senior Citizens
(Amount in Rs.)
Senior Citizens
(Amount in Rs.)
All Other
Individuals and HUFs
(Amount in Rs.)
Nil Upto 500,000 Upto 300,000 Upto 250,000
10 300,001 to 5,00,000 250,001 to 5,00,000
20 500,001 to 1,000,000 500,001 to 1,000,000 500,001 to 1,000,000
30 Above 1,000,000 Above 1,000,000 Above 1,000,000

Note:

1. Income Tax Rates are mentioned in each slab, however total tax liability shall include the amount of tax payable upto previous slab(s).

2. Income tax calculated in aforesaid manner for Individuals and HUFs for AY 2016-17 is subject to applicability of education cess @3% and surcharge (if total income is above Rs. 1 crore) @12%.

3. Marginal Relief in Surcharge on Income Tax can be claimed by Individuals and HUFs whose total income has exceeded Rs.1 crore marginally.

4. Resident Individuals whose total income is upto Rs. 5,00,000 can avail Tax Credit under S. 87A, equal to the Actual Tax Payable or Rs. 2,000 whichever less.

5. Senior Citizen here means an individual who is resident in India and is of the age of sixty years or more at any time during the relevant previous year.

6. Very Senior Citizen here means an individual who is resident in India and is of the age of eighty years or more at any time during the relevant previous year.

B. Income Tax Slabs – Cooperative Societies

Taxable Income
(Amount in Rs.)
Income Tax Slabs
(Rate in %)
Upto 10,000 10
10,001 to 20,000 20
Above 20,000 30

Note:

1. Income Tax Rates are mentioned in each slab, however total tax liability shall include the amount of tax payable upto previous slab(s).

2. Income tax calculated in aforesaid manner for Co-op. Societies for AY 2016-17 is subject to applicability of education cess @3% and surcharge (if total income is above Rs. 1 crore) @12%.

3. Marginal Relief in Surcharge on Income Tax can be claimed by Co-op. Societies, the total income of which has exceeded Rs.1 crore marginally.

C. Income Tax Rates – Companies (Domestic/ Foreign)

Components of Taxes Applicable Rates (%) of Tax
Domestic
Company
Foreign
Company
Income Tax (Refer Note 1) 30 40
Minimum Alternate Tax 18.5 18.5
Education Cess 3 3
Surcharge (Income Upto 1 crore) 0 0
Surcharge (Income 1 to 10 crore) 7 2
Surcharge (Income above 10 crore ) 12 5

Note:

1. Income tax rate for foreign companies shall be @50% (as against generally applicable rate of 40% referred in above table) on so much of the taxable 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.

2. Companies are liable for Income tax / Corporate Tax or MAT, Education Cess and Surcharge for AY 2016-17, at rates mentioned in the above table. Surcharge on Income Tax is normally applicable when total income exceeds 1 crore / 10 crore, however in the case of applicability of MAT, the surcharge will depend on the quantum of book profits exceeding 1 crore / 10 crores.

3. Marginal Relief in Surcharge on Income Tax can be claimed by Companies, the total income of which has marginally exceeded Rs.1 crore or Rs. 10 crores, as the case may be.

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