Income Tax Rates for AY 2016-17

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Hiral Vakil

Assessment Year
Income Tax Rates
Slab Rates

Different tax rates are applicable to the different categories of taxpayers. For example, the income of an individual is taxed at a slab rate whereas the income of a company is taxed at a fixed rate. The taxpayer needs to pay taxes and file ITR every year. Below are the tax rates applicable for income earned during the FY 2015-16/ AY 2016-17.

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Tax Rates for AY 2016-17: Individuals/ HUFs (Below the age of 60 years)

 

Taxable Income

Tax Rate

Upto Rs. 2,50,000

Nil

Rs. 2,50,000 to Rs. 5,00,000

10%

Rs. 5,00,000 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Surcharge Slab if taxable income

Rate

Above Rs. 1,00,00,000

12%

Cess

3% on total of income tax+surcharge

Rebate u/s 87A for Individuals: Rs. 2,000 or 100% of tax whichever is less- if total income is less than Rs. 5,00,000

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Tax Slab Rates for AY 2016-17: Individuals/ HUFs ( Aged between 60 years to 80 years)

 

Taxable Income

Tax Rate

Upto Rs. 3,00,000

Nil

Rs. 3,00,000 to Rs. 5,00,000

10%

Rs. 5,00,000 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Surcharge Slab if taxable income

Rate

Above Rs. 1,00,00,000

12%

Cess

3% on total of income tax+surcharge

Rebate u/s 87A for Individuals: Rs. 2,000 or 100% of tax whichever is less- if total income is less than Rs. 5,00,000

31st July
The due date to file ITR for Individuals to whom tax audit is not applicable.
31st July
The due date to file ITR for Individuals to whom tax audit is not applicable.

Tax Slab Rates for AY 2016-17: Individuals/ HUFs (Aged above 80 years)

 

Taxable Income

Tax Rate

Upto Rs. 5,00,000

Nil

Rs. 5,00,000 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Surcharge Slab if taxable income

Rate

Above Rs. 1,00,00,000

12%

Cess

3% on total of income tax+surcharge

 

Tax Rates for Latest Financial Year
From FY 2020-21 onwards taxpayer has an option to decide whether he wants to follow old tax regime or new tax regime.
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Tax Rates for Latest Financial Year
From FY 2020-21 onwards taxpayer has an option to decide whether he wants to follow old tax regime or new tax regime.
Read More


Income chargeable at special rates

Although your total income is taxed as per the slab rates mentioned above, there are certain incomes which are taxed at special rates:

Nature of income

Tax Rate

Short term capital gains from the sale of assets other than shares and mutual funds

Income tax slab rates as mentioned above

Long term capital gains from the sale of assets other than shares and mutual funds

20% + surcharge and cess

Short term capital gains from the sale of stocks and equity mutual funds

15% + surcharge and cess

Long term capital gains from the sale of stocks and equity mutual funds

Exempt (Nil Tax)

Short term capital gains from the sale of debt mutual funds

Income tax slab rates as mentioned above

Long term capital gains from the sale of debt mutual funds

20% with indexation + surcharge and cess

Income Chargeable at Fixed Rate

Tax rates applicable to Partnership Firm (Including LLP)

Partnership Firm/ LLP is taxed at a fixed rate of 30%. Surcharge at the rate of 12% of such tax if total income exceeds Rs. 1,00,00,000. Education Cess is levied @ 3% on the amount of income tax plus surcharge.

Tax rates to Domestic Companies

A domestic company is taxed at a fixed rate of 30%. However, the tax rate would be 29% if turnover or gross receipt of the company does not exceed Rs. 5 crore in the previous year.

The surcharge is applicable :

Education cess is levied @ 3% on the amount of income tax plus a surcharge.

FAQs

What is Surcharge?

It is the amount that is levied upon the tax payable and not on the income that is generated. In other words, it is a tax that is levied upon the general tax.
For example: if an individual has generated an income of INR 100 over which the tax payable is INR 30, then the surcharge would be 10% of INR 30.

How to calculate rebate u/s 87A?

1. Calculate your Gross Total Income (GTI)
2. Reduce the deductions under sections 80C to 80U
3. Calculate your Tax Payable as per Income Tax slabs
4. Deduct the amount of rebate allowed

What is the difference between the Financial Year and Assessment Year?

The Financial Year is the year which begins on 1st April and ends on 31st March. It is the year in which income is earned by the taxpayer. The Assessment Year is a year immediately following the Financial Year. The taxpayer needs to file the Income Tax Return (ITR) not in the year in which he/she earns the income but after the end of that year i.e, in the assessment year.  

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