Tax rates applicable to individual for financial year 2015-2016 – Assessment year 2016-2017

Budget 2015 has been placed in parliament by finance minister Arun Jaitley on 28th February 2015. This budget has not changed anything related to tax rates applicable to an individual for financial year 2015-2016 in comparison to financial year 2014-2015 except additional surcharge for those individual whose income exceeds Rs 1 crore in a financial year.

Tax-rates applicable to individual for financial year 2015-2016 and assessment year 2016-2017

Here is a tabular representation of tax rates applicable for the financial year 2015-2016 (assessment year 2016-2017);

Tax rates in case of resident individual of below 60 years of age – FY 2015-2016 and AY 2016-2017

Income Slab (Amount in Rupees)
Tax Rates
0-250000 NIL
250001-500000 10.3% of income exceeding Rs 250000
500001-1000000 Rs 25750 plus 20.6% of income exceeding Rs 500000
10,00,001-1 Crore Rs 128750 plus 30.9% of income exceeding Rs 10,00,000
1 Crore One and above Rs 2909750 plus 34.608% of income exceeding Rs 1 Crore

Tax rates in case of resident individual of 60 years of age or above but below 80 years of age – Senior Citizen – FY 2015-2016 and AY 2016-2017

Income Slab (Amount in Rupees) Tax Rates
0-300000 NIL
300001-500000 10.3% of income exceeding Rs 300000
500001-1000000 Rs 20600 plus 20.6% of income exceeding Rs 500000
10,00,001-1 Crore Rs 123600 plus 30.9% of income exceeding Rs 10,00,000
1 Crore One and above Rs 2904600 plus 34.608% of income exceeding Rs 1 Crore

Tax rates in case of resident individual of 80 years of age or above – Very Senior Citizen – FY 2015-2016 and AY 2016-2017

Income Slab (Amount in Rupees) Tax Rates
0-500000 NIL
500001-1000000 20.6% of income exceeding Rs 500000
10,00,001-1 Crore Rs 103000 plus 30.9% of income exceeding Rs 10,00,000
1 Crore One and above Rs 2884000 plus 34.608% of income exceeding Rs 1 Crore

Note: Tax rates as stated above are inclusive of education cess and secondary higher education cess @ 2% and 1% respectively as applicable for the financial year 2015-2016 (assessment year 2016-2017).

In budget 2015, surcharge in case of income exceeds Rs 1 Crore has been increased from last year’s 10% to 12%. This means from 1st of April 2015, surcharge of 12% will be charged in cases of individual’s income exceeding Rs 1 Crore.

Rebate under section 87A is applicable to financial year 2015-2016 (assessment year 2016-2017). This means all resident individual having total income less than Rs 500000 is also eligible to claim tax rebate under section 87A being lower of tax on total income or Rs 2000.

Above tax rates are also applicable to Hindu Undivided Family, Association of Persons and Body of Individuals.

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