Income Tax Slab AY 2016 -17 (FY 2015-16) – Rate & Deductions

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Budget 2016 is not at all a positive budget for the salaried class people as the expectation was not at all addressed according to many people. Many people expected that the basic Income Tax exemption Slab will be revised and people will get more relaxation. But our honorable FM Mr. Arun Jaitley has not changed income tax slab, but provide attention to some other facts. In this article I will share about the Income Tax Slab Rate & Deductions AY 2016 -17 (FY 2015-16).

Latest Income Tax Slab AY 2016 -17 (FY 2015-16)

You can read the exemption limit details as per your group and plan accordingly you income tax exemptions. But this is applicable to next financial year, that means you have to plan your savings & investments for next year accordingly so that you can save maximum income tax next fiscal year. For this year it return, you have to follow the income tax slab of 2015-16.

For Men Below 60 Years Of Age

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000Nil
Income between Rs. 2,50,001 – Rs. 500,00010% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000
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For Women Below 60 Years Of Age

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000Nil
Income between Rs. 2,50,001 – Rs. 500,00010% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000

Surcharge : 12% of the Income Tax, where taxable income is more than Rs. 1 crore. (Marginal Relief in Surcharge, if applicable)

Education Cess : 3% of the total of Income Tax and Surcharge.

For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax SlabIncome Tax Rate
Income upto Rs. 3,00,000Nil
Income between Rs. 3,00,001 – Rs. 500,00010% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000
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For Senior Citizens (Age 80 years or more)

Income Tax SlabIncome Tax Rate
Income upto Rs. 5,00,000Nil
Income between Rs. 500,001 – Rs. 10,00,00020% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,00030% of Income exceeding Rs. 10,00,000

Any NRI or HUF or AOP or BOI or AJP

Income SlabsTax Rates
i.Where the taxable income does not exceed Rs. 2,50,000/-.NIL
ii.Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-.10% of amount by which the taxable income exceeds Rs. 2,50,000/-.
iii.Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.Rs. 25,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv.Where the taxable income exceeds Rs. 10,00,000/-.Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.
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Note: NRI – Non Resident Individual; HUF – Hindu Undivided Family; AOP – Association of Persons; BOI – Body of Individuals; AJP – Artificial Judicial Person

One can easily plan for investments under below income tax sections to save maximum income tax.

Under Sec 80C – Upto Rs. 46,350/-saved on investment of Rs. 1,50,000/-. You can read the tax saving options beyond section 80C.

Under Section 80CCC – Upto Rs.30,900/-saved on Investment of Rs.1,50,000/-

Under Section 80D – Upto Rs. 10,815/-saved on investment of Rs.35,000/- (Inclusive of Rs. 20,000/- towards health insurance of parents who are senior citizens)

Under Sec. 10 (10)D: Under Sec. 10(10D), the benefits received by you are completely tax-free, subject to conditions specified there in.

So, are you happy with the income tax slab 2016-17? The date for filing income tax return online for FY 2015-16 is approaching, have you filed your ITR online? Share your thoughts on this income tax slab and how could that be modified better or what was your expected change on that.

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