Income Tax Slab for FY 2015-16 AY 2016-17

There is no change in the basic tax rate and exemption limit for Individual, Hindu Undivided Family, Association of Person, Body Of Individuals and Artificial Juridical Person in Assessment Year 2016-17 in Comparison to A.Y. 2015-16.

Further There is no change in basic tax rate of Co-operative Society, Firms, Local Authorities and Companies. However, it is proposed to reduce the basic tax rate in the case of Companies from 30% to 25% over the next four years, starting from next financial year i.e. FY 2015-16.

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There is change in Surcharge which is as under :

Person	Present Surcharge Rate	Proposed Surcharge Rate
Other than Company –
– Having Total Income exceeding Rs. 1 crore	10%	12%
Domestic Company‑
– Having Total Income exceeding Rs. 1 crore but less than Rs. 10 crore	5%	7%
– Having Total Income exceeding Rs. 10 crore	10%	12%
Foreign Company‑
– Having Total Income exceeding Rs. 1 crore but less than Rs. 10 crore	2%	2%
– Having Total Income exceeding Rs. 10 crore	5%	5%

There is no change in the rate of Education Cess and Secondary & Higher Education Cess on Income Tax and accordingly rate of 2% and 1% respectively on the amount of tax computed inclusive of surcharge, wherever applicable would be applied in all cases.

A. Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person. Paragraph A of Part-III of First Schedule to the Bill provides following rates of income-tax:-

(i) The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below) or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act (not being a case to which any other Paragraph of Part III applies) are as under:—

Upto Rs.2,50,000 Nil.

Rs. 2,50,001 to Rs. 5,00,000 10 per cent.

Rs. 5,00,001 to Rs. 10,00,000 20 per cent.

Above Rs. 10,00,000 30 per cent.

(ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Upto Rs.3,00,000 Nil.

Rs. 3,00,001 to Rs. 5,00,000 10 per cent.

Rs. 5,00,001 to Rs.10,00,000 20 per cent.

Above Rs. 10,00,000 30 per cent.

(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year,—

Upto Rs. 5,00,000 Nil.

Rs. 5,00,001 to Rs. 10,00,000 20 per cent.

Above Rs. 10,00,000 30 per cent.

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph shall be increased by a surcharge at the rate of twelve percent. of such income-tax in case of a person having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Tax Rates In case of Individual (below 60 years of age), Hindu Undivided Family, Association of Person and Body of Individuals for F.Y. 2015-16

Particulars	Income Level
Taxable Income	Rs. 2,50,000	Rs. 2.50 Lakh to 5 Lakh	Rs. 5 Lakh to Rs. 10 Lakh	Rs. 10 Lakh to Rs. 1 Crore	Above Rs. 1Crore
Current Tax	Nil	10.30%	20.60%	30.90%	33.99%
Proposed Tax	Nil	10.30%	20.60%	30.90%	34.608%

Tax Rates In case of Individual (between 60 to 80 years of age) for F.Y. 2015-16

Particulars	Income Level
Taxable Income	Rs. 3 lakh	Rs. 3 Lakh to Rs. 5 Lakh	Rs. 5 Lakh to Rs. 10 Lakh	Rs. 10 Lakh to Rs. 1 Crore	Above Rs. 1 Crore
Current Tax	Nil	10.30%	20.60%	30.90%	33.99%
Proposed Tax	Nil	10.30%	20.60%	30.90%	34.608%

Tax Rates In case of Individual (Above 80 years of age) for F.Y. 2015-16

Particulars	Income Level
Taxable Income	Rs. 5 Lakh	Rs. 5 Lakh to Rs. 10 Lakh	Rs. 10 Lakh to Rs. 1 Crore	Above Rs. 1 Crore
Current Tax	Nil	20.60%	30.90%	33.99%
Proposed Tax	Nil	20.60%	30.90%	34.608%

B. Co-operative Societies

In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part III of the First Schedule to the Bill. These rates will continue to be the same as those specified for financial year 2014-15.

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent of such income-tax in case of a co-operative society having a total income exceeding one crore rupees .

Income Tax Rate Chart In case of Co- Operative Societies for Financial year 2015-16

Particulars	Income Level
Taxable Income	Up to Rs. 10,000	Rs. 10,000 Rs. to Rs. 20,000	Rs. 20,000 to Rs. 1 Crore	Above 1 Crore
Current Tax	10.30%	20.60%	30.90%	33.99%
Proposed Tax	10.30%	20.60%	30.90%	34.608%

C. Firms

In the case of firms, the rate of income-tax has been specified in Paragraph C of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for financial year 2014-15 i.e. 30%.

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent of such income-tax in case of a firm having a total income exceeding one crore rupees .

Income Tax Rate Chart In case of Firms for Financial year 2015-16

Particulars	Income Level
Taxable Income	Upto 1 Crore	1 Crore to 10 Crore	Above 10 Crore
Current Tax	30.90%	33.99%	33.99%
Proposed Tax	30.90%	34.608%	34.608%

D. Local authorities

The rate of income-tax in the case of every local authority is specified in Paragraph D of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for the financial year 2014-15 i.e. 30% of taxable income..

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent. of such income-tax in case of a local authority having a total income exceeding one crore rupees.

Income Tax Rate Chart In case of Local authorities for Financial year 2015-16

Particulars	Income Level
Taxable Income	Upto 1 Crore	1 Crore to 10 Crore	Above 10 Crore
Current Tax	30.90%	33.99%	33.99%
Proposed Tax	30.90%	34.608%	34.608%

E. Companies

The rates of income-tax in the case of companies are specified in Paragraph E of Part III of the First Schedule to the Bill. These rates are the same as those specified for the financial year 2014-15 i.e. 30% of taxable income.

Surcharge at the rate of seven per cent shall be levied in case of a domestic company if the total income of the domestic company exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of twelve percent shall be levied if the total income of the domestic company exceeds ten crore rupees. In case of companies other than domestic companies, the existing surcharge of two per cent. shall continue to be levied if the total income exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of five percent shall continue to be levied if the total income of the company other than domestic company exceeds ten crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, shall not exceed the total amount payable as income-tax on a total income of one crore rupees, by more than the amount of income that exceeds one crore rupees. The total amount payable as income-tax and surcharge on total income exceeding ten crore rupees, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees, by more than the amount of income that exceeds ten crore rupees.

In other cases (including sections 115-O, 115QA, 115R or 115TA) the surcharge shall be levied at the rate of twelve percent.

For financial year 2015-2016, additional surcharge called the “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such Cess.

Income Tax Rate Chart In case of Corporates for Financial year 2015-16

SI.No.	Particulars	Tax(%)	Surcharge(%)	E. Cess(%)	SHE. Cess (%)	Effective Tax(%)
1	Domestic companies (with total income less than 1 Cr.)	30	–	2	1	30.90
2	Domestic companies (with total income more than1 cr. but less than 10 Cr.)	30	7*	2	1	33.063
3	Other domestic companies	30	12#	2	1	34.608
4	Foreign companies (with total income less than 1 Cr.)	40	–	2	1	41.20
5	Foreign companies (with total income more than	40	2	2	1	42.024
	1 cr. but less than 10 Cr.)
6	Other foreign companies	40	5	2	1	43.26

* Surcharge has been increased from 5% to 7%.

# Surcharge has been increased from 10% to 12%.

MINIMUM ALTERNATE TAX (MAT)

SI.No.	Particulars	Tax(%)	Surcharge (%)	E.Cess (%)	S EtHE.Cess(%)	Effective Tax (%)
1	Domestic companies (with total income less than 1 Cr.)	18.5	–	2	1	19.055
2	Domestic companies (with total income more than 1 cr. but less than 10 Cr.)	18.5	7*	2	1	20.389
3	Other domestic companies	18.5	12^#	2	1	21.342
4	Foreign companies (with total income less than 1 Cr.)	18.5	–	2	1	19.06
5	Foreign companies (with total income more than 1 cr. but less than 10 Cr.)	18.5	2	2	1	19.436
6	Other foreign companies	18.5	5	2	1	20.008

* Surcharge has been increased from 5% to 7%.

# Surcharge has been increased from 10% to 12%.

Alternate Minimum Tax (AMT)

It is applicable on all persons other than companies. In case of Individual, Hindu Undivided Family, Association of Persons and Body of Individuals, it applies only if Adjusted Total Income exceeds Rs. 20,00,000. Adjusted Total Income is computed by increasing Total Income by any Deduction claimed under chapter VIA [Sec. 80-IA to Sec. 8ORRB (Except Sec. 80P)] and Sec. 10AA.

AMT would be computed at the rate of 18.5% on adjusted total income. Surcharge has been increased from 10% to 12% where the adjusted total income exceeds Rs. 1,00,00,000. Education Cess is applicable at the rate of 2%. Secondary and Higher Education Cess is applicable ® 1% on income tax.

Securities Transaction Tax (STT)

STT is levied on the value of taxable securities transaction as under:

Sl.No.	Transactions	Rate	Payable by
1	Purchase/Sale of equity shares (delivery based)	0.1%	Purchaser/ Seller
2	Purchase of units of equity-oriented mutual fund (delivery based)	Nil	Purchaser
3	Sale of units of equity-oriented mutual fund (delivery based)	0.001%	Seller
4	Sale of equity shares, units of equity-oriented mutual fund (non-delivery based)	0.025%	Seller
5	Sale of an option in securities	0.017%	Seller
6	Sale of an option in securities, where option is exercised	0.125%	Purchaser
7	Sale of a futures in securities	0.01%	Seller
8	Sale of unit of equity oriented fund to the Mutual Fund	0.001%	Seller

Commodities Transaction Tax (CTT)

CTT is levied on the value of taxable commodities transaction:

Transactions	Rate	Payable by
Sale of commodity derivative (other than agricultural commodities) entered in a recognised association	0.1%	Seller

Dividend Distribution Tax (DDT)

Dividends distributed by an Indian Company are exempt from income tax in the hands of all shareholders. DDT shall be computed on the amount determined after grossing up dividend paid by the rate of tax (excluding Surcharge and Cess) on such dividend.

Grossing up needs to be done only of the Basic Rate and not of the Effective Rate. The rates of DDT are as below:

DDT Rates for Companies

Basic Rate	Effective Rate*
17.647	20.358

*including Surcharge of 12% & Education Cess

DDT Rates for Mutual Fund” (MF) for payments to –

Particulars	Basic Rate	Effective Rate*
(1) Distribution by MF under an Infrastructure Debt fund scheme to a non-resident	5.263	6.071
(2) To an individual or HUF excluding (1) above	33.33	38.449
(3) To any other Person excluding (1) a (2) above	42.85	49.432

*including Surcharge of 12% & Education Cess

Download Income Tax Slab for FY 2015-16 AY 2016-17

Income Tax Slab For Fy 2015-16 Ay 2016-17