Rates of Income Tax – Financial Year 2016-17 (Assessment Year 2017-18)
Rules of Income Tax Act are subjected to periodical revisions. Accordingly, the rates of income tax also undergo periodical changes. Different tax rates have been stipulated for various categories of taxpayers and for different sources of income. Individual/Hindu Undivided Family (HUF)/ Association of Persons (AOP)/ Body of Individuals (BOI) or any other artificial judicial person is taxed as per different slab rates. The same rates are applicable to individuals whose income is from Salaries and allowances.
The rates of income tax mentioned below are applicable to the Financial Year 2016-17 (Assessment Year 2017-18).
1.Rates of Income Tax – Slab rates for Individuals/HUF/AOP/BOI/Artificial Judicial Person
The individual in this category mean both resident and non-resident if the said person is born on or after April 01, 1957.
|
Income Slab –Rs. |
Rate % |
Amount of Income Tax |
|
Up to 2,50,000/- |
Nil |
Nil |
|
2,50,001/- to 5,00,000/- |
10% |
10% of the amount by which total income exceeds Rs. 2,50,000/- |
|
5,00,001/- to 10,00,000/- |
20% |
Rs. 25,000/- plus 20% of the amount by which the total income exceeds Rs. 5,00,000/- |
|
10,00,001/- and above |
30% |
Rs. 1,25,000/- plus 30% of the amount by which the total income exceeds Rs. 10,00,000/- |
2. Rates of Income Tax – For Senior Citizens
(born during April 01, 1937 and March 31, 1957)
|
Income Slab-Rs. |
Rate % |
Amount of Income Tax |
|
Up to 3,00,000/- |
Nil |
NIL |
|
3,00,001/- to 5,00,000/- |
10% |
10% of the amount by which total income exceeds Rs.3,00,000/- |
|
5,00,001/- to 10,00,000/- |
20% |
Rs. 20,000/- plus 20% of the amount by which the total income exceeds Rs. 5,00,000/- |
|
10,00,001/- and above |
30% |
Rs.1,20,000/- plus 30% of the amount by which the total income exceeds Rs. 10,00,000/ |
3. Rates of Income Tax – For super Senior Citizens
(who is 80 years or more at any time during the previous year)
|
Income Slab-Rs. |
Rate % |
Amount of Income Tax |
|
Up to 5,00,000/- |
Nil |
NIL |
|
5,00,001/- to 10,00,000/- |
20% |
20% of the amount by which total income exceeds Rs.5,00,000/- |
|
10,00,001/- and above |
30% |
Rs.1,00,000/- plus 30% of the amount by which the total income exceeds Rs. 10,00,000/ |
3. Rates of Income Tax- Rebate under Section 87 A.
A resident Individual, whose net income does not exceed Rs. 5, 00,000 is entitled to a rebate of maximum Rs. 5,000. Net income for the purpose is gross total income minus deductions under section 80C to 80 U. The rebate under Section 87A is deductible from the income tax before calculating education cess. The amount of rebate is 100% of income tax or Rs.5,000, whichever is less.
4. Rates of Income Tax – Education Cess
An Education cess @ 2% and Secondary and Higher Education Cess @ 1% on the total Tax liability is payable by all the assessees. The total cess thus becomes 3%. In the case of employees, it becomes a part of TDS
5. Rates of Income Tax – Surcharge on Income Tax
If the net income of the assesse exceeds Rs. 1Crore, a Surcharge of 15 % is payable on Income Tax if the net income exceeds Rs. 1 Crore.
