Tax rates applicable to partnership firm, Co-operative Society and Local Authority for financial year 2015-2016

In our last article we have discussed above tax rates that is applicable to an individual for the financial year 2015-2016 (assessment year 2016-2017). In this article we will be looking into the tax rates that are applicable to a partnership firm, Co-operative society and local authority for the financial year 2015-2016 (assessment year 2016-2017).

These rates will be applicable with effect for income generated from 1^st of April 2015 to 31^st March 2016.

Tax rates Applicable to Co-Operative Societies for Financial year 2015-2016 – Assessment year 2016-2017

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 1^st of April 2015, surcharge of 12% will be charged in case individual’s income exceeds Rs 1 Crore.

 Tax rates Applicable to Local Authorities for Financial year 2015-2016 – AY 2016-2017

In India, Local Authorities are taxable at the rate of 30%. Surcharge on local authorities has been increased from 10% to 12% where the total income exceeds Rs 1 Crore. Like in case of individual, in case of local authorities also education cess is applicable at the rate of 2% and secondary and higher education cess is applicable @1% on income tax.

Tax Rates for Partnership Firms for Financial Year 2015-2016- AY 2016-2017

Partnership Firms are taxed in India at the rate of 30%. Education cess at the rate of 2%  and secondary and higher education cess at the rate of 1% is applicable on income tax for the financial year 2015-2016 (assessment year 2016-2017).

Surcharge in case of partnership firm has been increased from 10% to 12% where total income exceeds Rs 1 Crore.