Tax Rates

Income Tax Slabs and Rates

Your income is taxed according to income tax slab rates. Tax slabs have not changed since financial year FY 2014-15 (assessment year AY 2015-16). Income tax slab rates are same for these 3 financial years – FY 2014-15, FY 2015-16 and FY 2016-17.

Income Tax Slab Rates for FY 2015-16(AY 2016-17)
[These income tax slab rates are also applicable for FY 2016-17(AY 2017-18) and FY 2014-15(AY 2015-16)]

Income tax slab for individual tax payers & HUF (less than 60 years old) (both men & women)

Income Slab

Tax Rate

Income up to Rs 2,50,000

No Tax

Income from Rs 2,50,000 – Rs 5,00,000

10%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

Income tax slab for senior citizens (60 years old or more but less than 80 years old) (both men & women)

Income Slab

Tax Rate

Income up to Rs 3,00,000

No Tax

Income from Rs 3,00,000 – Rs 5,00,000

10%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

Income tax slab for super senior citizens (80 years old or more) (both men & women)

Income Slab

Tax Rate

Income up to Rs 2,50,000

No Tax

Income up to Rs 5,00,000

No tax

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.

Cess: 3% on total of income tax + surcharge.

How to calculate income tax from income tax slabs?
This example explains how to apply tax slabs to calculate income tax for FY 2015-16(AY 2016-17).

Vijay has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income and interest income. Deductions under section 80 have also been reduced. Vijay wants to know his tax dues for FY 2015-16.

Income Slab

Tax Rate

Tax calculation

Income up to Rs 2,50,000

No tax

 

Income from Rs 2,50,000 – Rs 5,00,000

10% (Rs 5,00,000 – Rs 2,50,000)

Rs 25,000

Income from Rs 5,00,000 – 10,00,000

20% (Rs 8,00,000 – Rs 5,00,000)

Rs 60,000

Income more than Rs 10,00,000

30%

nil

Tax

 

Rs 85,000

Cess

3% of Rs 85,000

Rs 2,550

Total tax in FY 2015-16 (AY 2016-17)

 

Rs 87,550