CA Sandeep Kanoi

CA Sandeep KanoiArticles explains Rates of income-tax in respect of income liable to tax , Minimum Alternative Tax Rate, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) and Dividend Distribution Tax (DDT) Rates for Financial Year 2015-16 i.e. Assessment Year 2016-17.

Rates of income-tax in respect of income liable to tax for the Financial year 2015-2016 / Assessment Year 2016-2017

There is no change in the basic tax rate and exemption limit for Individual, Hindu Undivided Family, Association of Person, Body Of Individuals and Artificial Juridical Person in Assessment Year 2016-17 in Comparison to A.Y. 2015-16.

Further There is no change in basic tax rate of Co-operative Society, Firms, Local Authorities and Companies. However, it is proposed to reduce the basic tax rate in the case of Companies from 30% to 25% over the next four years, starting from next financial year i.e. FY 2016-17.

There is change in Surcharge which is as under :

Person Present
Surcharge Rate
Proposed
Surcharge Rate
Other than Company –
– Having Total Income exceeding
Rs. 1 crore
10% 12%
Domestic Company‑
– Having Total Income exceeding Rs. 1 crore but less than Rs. 10 crore 5% 7%
– Having Total Income exceeding
Rs. 10 crore
10% 12%
Foreign Company‑
– Having Total Income exceeding Rs. 1 crore but less than Rs. 10 crore 2% 2%
– Having Total Income exceeding
Rs. 10 crore
5% 5%

There is no change in the rate of Education Cess and Secondary & Higher Education Cess on Income Tax and accordingly rate of 2% and 1% respectively on the amount of tax computed inclusive of surcharge, wherever applicable would be applied in all cases.

Also Read-

A. Normal tax rates applicable to an individual

The normal tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the tax rates will be same irrespective of his age. For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:

  • Resident individual below the age of 60 years. i.e. born on or after 1.4.1956
  • Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years. (i.e. born during 1-4-1936 to 31-3-1956)
  • Resident individual of the age of 80 years or above at any time during the year. i.e. born before 1.4.1936
  • Non-resident individual irrespective of the age.

i. individual below the age of 60 years i.e. born on or after 1.4.1956, Non-resident individual irrespective of age, Resident/Non-Resident Hindu undivided family, association of persons, body of individuals, artificial juridical person.

Tax Slab

Net income range Income-tax rates Education Cess Secondary and higher Education Cess
Up to Rs. 2,50,000 Nil Nil Nil
Rs. 2,50,000 – Rs. 5,00,000 10% of (total income minus Rs. 2,50,000) [*] 2% of income-tax 1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000 Rs. 25,000 + 20% of (total income minus Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 10,00,000 Rs. 1,25,000 + 30% of (total income minus Rs. 10,00,000) 2% of income-tax 1% of income-tax

Tax Rate After Considering Surcharge# and Cess Based on Income Level-

Particulars Income Level
Taxable Income Rs. 2,50,000 Rs. 2.50 Lakh to 5 Lakh Rs. 5 Lakh to Rs. 10 Lakh Rs. 10 Lakh to Rs. 1 Crore Above Rs. 1 Crore
F.Y. 2014-15 Nil 10.30% 20.60% 30.90% 33.99%
F.Y 2015-16 Nil 10.30% 20.60% 30.90% 34.608%

(ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year i.e. born during 1.4.1936 to 31.3.1956

Net income range Income-tax rates Education Cess Secondary and higher Education Cess
Up to Rs. 3,00,000 Nil Nil Nil
Rs. 3,00,000 – Rs. 5,00,000 10% of (total income minus Rs. 3,00,000) [*] 2% of income- tax 1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000 Rs. 20,000 + 20% of (total
income minus Rs. 5,00,000)
2% of income- tax 1% of income-tax
Above Rs.
10,00,000
Rs. 1,20,000 + 30% of (total income minus Rs. 10,00,000) 2% of income- tax 1% of income-tax

Tax Rate After Considering Surcharge# and Cess Based on Income Level-

Particulars Income Level
Taxable Income Rs. 3 lakh Rs. 3 Lakh to Rs. 5 Lakh Rs. 5 Lakh to Rs. 10 Lakh Rs. 10 Lakh to Rs. 1 Crore Above Rs. 1 Crore
F.Y. 2014-15 Nil 10.30% 20.60% 30.90% 33.99%
F.Y 2015-16 Nil 10.30% 20.60% 30.90% 34.608%

(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year i.e. born before 1.4.1936

Net income range Income-tax rates Education Cess Secondary and

higher Education
Cess

Up to Rs. 5,00,000 Nil Nil Nil
Rs. 5,00,000 – Rs.
10,00,000
20% of (total income minus Rs. 5,00,000) 2% of income- tax 1% of income-tax
Above Rs. 10,00,000 Rs. 1,00,000 + 30% of (total
income minus Rs. 10,00,000)
2% of income- tax 1% of income-tax

Tax Rate After Considering Surcharge# and Cess Based on Income Level-

Particulars Income Level
Taxable Income Rs. 5 Lakh Rs. 5 Lakh to Rs. 10 Lakh Rs. 10 Lakh to Rs. 1 Crore Above Rs. 1 Crore
F.Y. 2014-15 Nil 20.60% 30.90% 33.99%
F.Y 2015-16 Nil 20.60% 30.90% 34.608%

#Surcharge : Surcharge is levied @ 12% on the amount of income-tax where net income exceeds Rs. 1 crore. In a case where surcharge is levied, EC of 2% and SHEC of 1% will be levied on the amount of income-tax plus surcharge.

However, marginal relief is available from surcharge in such a manner that in the case of a person having a net income exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

AMT: In the case of a non-corporate taxpayer to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+SC+EC+SHEC) of “adjusted total income” computed as per section 1 15JC. For provisions relating to AMT refer tutorial on “MAT/AMT” in tutorial section.

[*] A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 2,000, whichever is less.

B. Co-operative Societies

In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part III of the First Schedule to the Bill. These rates will continue to be the same as those specified for financial year 2014-15.

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent of such income-tax in case of a co-operative society having a total income exceeding one crore rupees .

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

AMT : In the case of a non-corporate taxpayer to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+SC+EC+SHEC) of “adjusted total income” computed as per section 115JC.

Income Tax Rate Chart In case of Co- Operative Societies for Financial year 2015-16

Particulars Income Level
Taxable Income Up to Rs. 10,000 Rs. 10,000 Rs. to Rs. 20,000 Rs. 20,000 to Rs. 1 Crore Above 1 Crore
F.Y. 2014-15 10.30% 20.60% 30.90% 33.99%
F.Y 2015-16 10.30% 20.60% 30.90% 34.608%

Related Posts on Co-operative Societies Taxation

1. Tax on Bank Interest of Co-Op Society, Club or Mutual Association

2. Transfer Pricing Applicability to Dairy Co-operative societies

3. Taxation of Cooperative Societies Under Direct & Indirect Tax

C. Partner ship Firms /Limited Liability Partnerships

In the case of firms, the rate of income-tax has been specified in Paragraph C of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for financial year 2014-15 i.e. 30%.

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent of such income-tax in case of a firm having a total income exceeding one crore rupees .

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

In the case of a non-corporate taxpayers to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+SC+EC+SHEC) of “adjusted total income” computed as per section 115JC.

Income Tax Rate Chart In case of Firms/LLP for Financial year 2015-16

Particulars Income Level
Taxable Income Upto 1 Crore 1 Crore to 10
Crore
Above 10 Crore
F.Y. 2014-15 30.90% 33.99% 33.99%
F.Y. 2015-16 30.90% 34.608% 34.608%

Related Posts:-

D. Local authorities

The rate of income-tax in the case of every local authority is specified in Paragraph D of Part III of the First Schedule to the Bill. This rate will continue to be the same as that specified for the financial year 2014-15 i.e. 30% of taxable income..

The amount of income-tax shall be increased by a surcharge at the rate of twelve percent. of such income-tax in case of a local authority having a total income exceeding one crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

AMT : In the case of a non-corporate taxpayer to whom the provisions of Alternate Minimum Tax (AMT) applies, tax payable cannot be less than 18.5% (+SC+EC+SHEC) of “adjusted total income” computed as per section 115JC.

Income Tax Rate Chart In case of Local authorities for Financial year 2015-16

Particulars Income Level
Taxable Income Upto 1 Crore 1 Crore to 10
Crore
Above 10 Crore
F.Y. 2014-15 30.90% 33.99% 33.99%
F.Y 2015-16 30.90% 34.608% 34.608%

E. Companies

a. Domestic Company

The rates of income-tax in the case of companies are specified in Paragraph E of Part III of the First Schedule to the Bill. These rates are the same as those specified for the financial year 2014-15 i.e. 30% of taxable income.

Surcharge at the rate of seven per cent shall be levied in case of a domestic company if the total income of the domestic company exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of twelve percent shall be levied if the total income of the domestic company exceeds ten crore rupees. In case of companies other than domestic companies, the existing surcharge of two per cent. shall continue to be levied if the total income exceeds one crore rupees but does not exceed ten crore rupees. The surcharge at the rate of five percent shall continue to be levied if the total income of the company other than domestic company exceeds ten crore rupees.

However, the total amount payable as income-tax and surcharge on total income exceeding one crore rupees but not exceeding ten crore rupees, shall not exceed the total amount payable as income-tax on a total income of one crore rupees, by more than the amount of income that exceeds one crore rupees. The total amount payable as income-tax and surcharge on total income exceeding ten crore rupees, shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees, by more than the amount of income that exceeds ten crore rupees.

In other cases (including sections 115-O, 115QA, 115R or 115TA) the surcharge shall be levied at the rate of twelve percent.

For financial year 2015-2016, additional surcharge called the “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such Cess.

b. Normal tax rates applicable to a foreign company

A foreign company is taxed at a flat rate of 40%. Apart from tax @ 40%, Education Cess is levied @ 2% of income-tax and Secondary and higher Education Cess is levied @ 1% of income-tax.

Surcharge : In addition to tax at above rate, surcharge is levied @ 2% on the amount of income-tax if net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore and @ 5% on the amount of income-tax if net income exceeds Rs. 10 crore. In a case where surcharge is levied, EC of 2% and SHEC of 1% will be levied on the amount of income-tax plus surcharge.

However, marginal relief is available from surcharge in such a manner that in the case of a foreign company whose net income exceeds Rs. 1 crore but does not exceed Rs. 10 crore the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

In case of a foreign company whose net income exceeds Rs. 10 crore, marginal relief is available from surcharge in such a manner that the amount payable as income-tax and surcharge shall not exceed the total amount payable as income-tax and surcharge on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore.

MAT : In the case of a corporate taxpayer to whom the provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less than 18.5% (+SC+EC+SHEC) of “Book profit” as per section 1 15JB.

Income Tax Rate Chart In case of Corporates for Financial year 2015-16

SI.No. Particulars Tax(%) Surcharge(%) E. Cess(%) SHE. Cess (%) Effective Tax(%)
1 Domestic companies (with total income less than 1 Cr.) 30 2 1 30.90
2 Domestic companies (with total income more than1 cr. but less than 10 Cr.) 30 7* 2 1 33.063
3 Other domestic companies 30 12# 2 1 34.608
4 Foreign companies (with total income less than 1 Cr.) 40 2 1 41.20
5 Foreign companies (with total income more than 40 2 2 1 42.024
1 cr. but less than 10 Cr.)
6 Other foreign companies 40 5 2 1 43.26

* Surcharge has been increased from 5% to 7%.

# Surcharge has been increased from 10% to 12%.

MINIMUM ALTERNATE TAX (MAT) RATES FOR FINANCIAL YEAR 2015-16

SI. No. Particulars Tax (%) Surcharge
(%)
E. Cess
(%)
S Et HE. Cess (%) Effective Tax
(%)
1 Domestic companies (with total income less than 1 Cr.) 18.5 2 1 19.055
2 Domestic companies (with total income more than 1 cr. but less than 10 Cr.) 18.5 7* 2 1 20.389
3 Other domestic companies 18.5 12# 2 1 21.342
4 Foreign companies (with total income less than 1 Cr.) 18.5 2 1 19.06
5 Foreign companies (with total income more than 1 cr. but less than 10 Cr.) 18.5 2 2 1 19.436
6 Other foreign companies 18.5 5 2 1 20.008

* Surcharge has been increased from 5% to 7%.

# Surcharge has been increased from 10% to 12%.

Alternate Minimum Tax (AMT)

It is applicable on all persons other than companies. In case of Individual, Hindu Undivided Family, Association of Persons and Body of Individuals, it applies only if Adjusted Total Income exceeds Rs. 20,00,000. Adjusted Total Income is computed by increasing Total Income by any Deduction claimed under chapter VIA [Sec. 80-IA to Sec. 8ORRB (Except Sec. 80P)] and Sec. 10AA.

AMT would be computed at the rate of 18.5% on adjusted total income. Surcharge has been increased from 10% to 12% where the adjusted total income exceeds Rs. 1,00,00,000. Education Cess is applicable at the rate of 2%. Secondary and Higher Education Cess is applicable ® 1% on income tax.

Securities Transaction Tax (STT) Rates for Financial Year 2015-16

STT is levied on the value of taxable securities transaction as under:

Sl. No. Transactions Rate Payable by
1 Purchase/Sale of equity shares (delivery based) 0.1% Purchaser/ Seller
2 Purchase of units of equity-oriented mutual fund (delivery based) Nil Purchaser
3 Sale of units of equity-oriented mutual fund (delivery based) 0.001% Seller
4 Sale of equity shares, units of equity-oriented mutual fund (non-delivery based) 0.025% Seller
5 Sale of an option in securities 0.017% Seller
6 Sale of an option in securities, where option is exercised 0.125% Purchaser
7 Sale of a futures in securities 0.01% Seller
8 Sale of unit of equity oriented fund to the Mutual Fund 0.001% Seller

Commodities Transaction Tax (CTT)

CTT is levied on the value of taxable commodities transaction:

Transactions Rate Payable by
Sale of commodity derivative (other than agricultural commodities) entered in a recognised association 0.1% Seller

Dividend Distribution Tax (DDT) for Financial Year 2015-16

Dividends distributed by an Indian Company are exempt from income tax in the hands of all shareholders. DDT shall be computed on the amount determined after grossing up dividend paid by the rate of tax (excluding Surcharge and Cess) on such dividend.

Grossing up needs to be done only of the Basic Rate and not of the Effective Rate. The rates of DDT are as below:

DDT Rates for Companies for Financial Year 2015-16

Basic Rate Effective Rate*
17.647 20.358

*including Surcharge of 12% & Education Cess

DDT Rates for Mutual Fund” (MF) for payments to –

Particulars Basic Rate Effective Rate*
(1) Distribution by MF under an Infrastructure Debt fund scheme to a non-resident 5.263 6.071
(2) To an individual or HUF excluding (1) above 33.33 38.449
(3) To any other Person excluding (1) a (2) above 42.85 49.432

*including Surcharge of 12% & Education Cess

# Excludes equity oriented funds

(Republished with Amendments)

 ALSO READ
S.NO. INCOME TAX SLAB
INCOME TAX CALCULATORS
1. Income Tax Slabs for FY 2016-17 / AY 2017-18
2. Income Tax Slab for FY 2015-16 AY 2016-17
3. Income Tax Slab for FY 2014-15 AY 2015-16
4.
5.  Income tax Slab for FY 2012-13 / AY 2013-14 Income Tax Calculator FY 2012-13 / AY 2013-14
6. Income tax calculator for FY 2006-07 to FY 2016-17
7. Income Tax Slab Rates from AY 1992-93 to AY 2015-16

Author Bio

Qualification: CA in Practice
Company: Taxguru / Sandeep Kanoi & Associates
Location: Mumbai, Maharashtra, IN
Member Since: 27 Feb 2017 | Total Posts: 599
A Blogger by Passion and a Chartered Accountant by Profession. View Full Profile

My Published Posts

More Under Income Tax

Posted Under

Category : Income Tax (27505)
Type : Articles (17002)

69 responses to “Income Tax Slab for FY 2015-16 AY 2016-17”

  1. K. Jhansi Rani says:

    Sirs, I am old lady aged 64 yrs having accrued interest on fixed deposits amounting R.676587. during 1.4.16 to 31.3.2017 period. I do not have any other sources of income. so far i have not paid tax. Now i wants to pay tax as self assessment payer. The taxable incomes comes to Rs.55317 plus 3% cess total comes R.56977. Could you please checkup and inform whether it is correct. i do not have any savings under 80c. If i take Rs.1.5 lakhs under seneior citizen fixed deposit how much amount can i get exemption in tax. is it full amt . my husband is retired bank employee paying medical insurance for 16000 pa covering for both of us. can i show it under 80D. All the deposits are in joint names being first name is of me. The gross tax is Rs. 56977 minus (less) exemption amount (pl. help me to arrive the figure) and inform the net tax payable . Pl. how to pay the tax . shall i approach any tx consultant or you may also can help me to the required paper ( saral its return for old people)applicable in this regard. ….my email id is rkokati@yahoo.com. ….k, jhansi rani wife ramaro.

  2. Bipul says:

    I am paying a rent of Rs 9000 per month for family maintainence in other state and I also occupy a govt quarter as such I am not getting any HRA. Can I claim exemption on the rent paid by me.

  3. Manihar I Panjwani. says:

    Errously mixed up with Pension slab:
    While mentionig Incom tax slabs for Senior Citizen completing 99 years & attaining the age of 100 years. There was no such slab as it was errously mixed up with Pention Slab. Error is regretted.

  4. ANSHUMAN SHRIVASTAVA says:

    Dear all,

    you can write me on
    anshumanshrivastava2014@gmail.com

    Regards
    Anshuman

  5. ANSHUMAN SHRIVASTAVA says:

    Dear All,
    Solar roof top power plant is one of the biggest instrument for saving corporate tax through accelerated depreciation .Company can invest in their own property or on third party property for the purpose of regular and stable savings/income(income will get the benefit of tax holiday for 10 years ) .
    This is the last months for the client who interested for solar roof top power plant with the objectives of savings as well as Accelerated Depreciation benefits.( As Budget capping the accelerated depreciation tax benefit at a maximum of 40 per cent from April 2017 from 80% as of now).
    Plant should be commenced before march for all above benefits .
    Below are the incentives offered by government to industrial and commercial consumer for fy 2016-17 as there is no capital subsidy available.
    1) 10 Year of tax holiday- under section 80-IA of the income tax act 1961 for system owner /power generator.
    2) Income tax benefit through Accelerated depreciation – Investor can use this is to substantially reduce tax burden in the first few years of the project up to 100% of the project cost ( 80% accelerated depreciation and 20% additional depreciation – Sec 32)
    3) Concessional custom duty on imports .
    We are pune based bankable MNRE em-paneled Solar EPC contractor .Company who are interested to save taxes through Accelerated tax benefit can contact me .
    Regards
    Anshuman Shrivastava
    09028012464

  6. CA Jinal Shah says:

    Rebate in the form of interest on home loan of rs 2lac is allowable

  7. CA Jinal Shah says:

    There is no such schedule in return for disclosing purchased flat. If there is sale of any asset then it need to disclose in return.
    There is no limit for purchase of flat. It depends on your capacity

  8. CA Jinal Shah says:

    After uploading tax return it need to be e verify by different mode or to be sent physically to cpc.

  9. MdIrshadSheikh says:

    I am employee at General Hospital Chandrapur. I want to know that
    amount paid to companies for AMC of Machine Amount above 30000/- then
    tds is applicable or not

  10. MdIrshadSheikh says:

    I am employee at General Hospital Chandrapur. I want to know that amount paid to companies for AMC of Machine Amount above 30000/- then tds is applicable or not

  11. Naresh Kumar says:

    My Tds Deducated as AY-16-14 (01.04.15 to 30.06.15) which ITR the usable for refund TDS (ITR FY-15-16 /FY-16-14)

  12. Natarajan says:

    Iam73yerrsold my total pention is 333058 donation is amounting to Rs13500 how much I have pay towards IT

  13. Dhiraj Chandankhede says:

    I have a business of tuition classes for commerce i just want to know that how much income chargeable under the head business and profession.

    • vinod kumar gupta says:

      if you are running the business of tuition classes in organised way , You have to prepare a profit & loss account for the same thereafter net profit from the same business would be taxable.

  14. Dhiraj Chandankhede says:

    I have a business of tuition classes for commerce i just want to that how much income chargeable under the head business and profession.

    • Clive Sinclair says:

      You need to maintain income and expenditure statements. Net income will be charged to income tax as per business tax rates.

  15. Dsouza says:

    I have renovated my old house and spent Rs.2,50,000/- and I get income tax rebate on this for financial year 2015-16 and Assessment year 2016-17??? please guide accordingly

  16. Dsouza says:

    I have renovated my old house and spent Rs.2,50,000/- and I get income tax rebate on this for financial year 2015-16 and Assessment year 2016-17??? please guide accordingly

  17. ANUP SINGH says:

    dear
    sir

    how to 80c amount is f.y.2015-16 a.y. 2016-17

  18. Hari Ram Dhiman says:

    whether it is necessary to post ITRV to CPC when tax return has been filed and there is nil tax. I am having pan no. Please clary.

Leave a Reply

Your email address will not be published. Required fields are marked *