Wednesday, 4 March 2015

Income tax slabs for FY 2015-16

Income tax rates may change every year and it is important to have an idea about the current income tax rates. In this post we'll see the different tax slabs for the current financial year. Please note that the income tax slabs for the FY (Fiscal Year) 2014-15 and FY 2015-16 i.e. AY (Assessment Year) 2015-16 and AY 2016-17 are the same.

Tax payers may be categorized into 2 categories -

  1. Non-business.
  2. Business.

The non-business categories of income tax payers in India are -

  1. Male Individual residents below 60 years of age and HUF.
  2. Female Individual residents below 60 years of age.
  3. Senior Citizen Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year.
  4. Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year.

The business categories of income tax payers in India are -

  1. Co-operative societies.
  2. Firms.
  3. Domestic Companies.
  4. Foreign companies.

Here we'll discuss only about the non-business categories of income tax payers.

Tax slabs for individual residents aged below 60 years and HUF

For individual resident aged below 60 years and HUF rates of income tax are as-

Income Slabs Rates of income tax
Taxable income does not exceed Rs. 2,50,000. Till the income of Rs. 2,50,000 there is no tax so in this case the tax is NIL.
Taxable income is more than 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.
Less: Tax credit (under u/s 87A) of Rs. 2,000 available only to resident Individuals having total taxable income upto Rs. 5 lakhs.
Taxable income is more than 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.
Taxable income exceeds Rs. 10,00,000. Rs. 125,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,000.

Note that for FY (Fiscal Year) 2014-15 and 2015-16 income tax slabs for males and females are same.

Surcharge on income-tax - If taxable income exceeds one crore rupees, surcharge of 10% is levied on the calculated income tax. In the case of surcharge marginal relief is also applicable if the condition for that is satisfied.

Education Cess - There is also 2% education cess and 1% secondary and higher education cess(total 3%) of the total of income tax and net surcharge.

Tax slabs for a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)

For a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year) rates of income tax are as-

Income Slabs Rates of income tax
Where the taxable income does not exceed Rs. 3,00,000. Till the income of Rs. 3,00,000 there is no tax so in this case the tax is NIL.
Taxable income is more than Rs. 3,00,000 but does not exceed Rs. 5,00,000. 10% of the amount by which the taxable income exceeds Rs. 3,00,000.
Less: Tax credit (under u/s 87A) of Rs. 2,000 available only to resident Individuals having total taxable income upto Rs. 5 lakhs.
Taxable income is more than Rs. 5,00,000 but does not exceed Rs. 10,00,000. Rs. 20,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000.
Taxable income exceeds Rs. 10,00,000. Rs. 120,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,000.

Surcharge on income-tax - If taxable income exceeds one crore rupees, surcharge of 10% is levied on the calculated income tax. In the case of surcharge marginal relief is also applicable if the condition for that is satisfied.

Education Cess - There is also 2% education cess and 1% secondary and higher education cess(total 3%) of the total of income tax and net surcharge.

Tax slabs for a resident super senior citizen (who is 80 years or more at any time during the previous year)

For a resident super senior citizen (who is 80 years or more at any time during the previous year) rates of income tax are as-

Income Slabs Rates of income tax
Where the taxable income does not exceed Rs. 5,00,000. Till the income of Rs. 5,00,000 there is no tax so in this case the tax is NIL.
Taxable income is more than Rs. 5,00,000 but does not exceed Rs. 5,00,000. 20% of the amount by which the taxable income exceeds Rs. 5,00,000.
Taxable income exceeds Rs. 10,00,000. Rs. 100,000+ 30% of the amount by which the taxable income exceeds Rs. 10,00,000

Surcharge on income-tax - If taxable income exceeds one crore rupees, surcharge of 10% is levied on the calculated income tax. In the case of surcharge marginal relief is also applicable if the condition for that is satisfied.

Education Cess - There is also 2% education cess and 1% secondary and higher education cess(total 3%) of the total of income tax and net surcharge.

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1 comment:

  1. Thanks for the information... I really love your blog posts... specially those on Proofs for Form 12BB

    ReplyDelete