Income tax slab for fy 2016-17

Updated on 29th Feb 2016

Finance minister Arun Jaitley presented the union of India budget today 29th Feb 2016 for the financial year 2016-17 and assessment year 2017-18.

The following are the highlights with respect to income tax slabs for financial year 2016-17.

There is no change in tax slabs and exemption limits. These are the same as last year

The deduction limit under Section 87A of the Income Tax Act has been raised from  Rs. 2,000 to Rs. 5,000 per annum. This section applies to those with total income of less than Rs. 5 lakh. So people with taxable income less than Rs 5,00,000 will have an additional benefit of Rs 3000. This is the only change in income tax tares as compared to previous year.

 

The new income tax slabs and rates applicable for the financial year (FY) 2016-17 and assessment year (AY) 2017-18  are mentioned below:

New Income tax slab for FY 2016-17 / AY 2017-18

New Income Tax Slabs for AY 2017-18 for Resident Senior Citizens above 60 years (FY 2016-17)
S. No.Income RangeTax percentage
1Up to Rs 3,00,000No tax / exempt
23,00,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
New Income Tax Slabs for AY 2017-18 for Resident Senior Citizens above 80 years (FY 2016-17)
S. No.Income RangeTax percentage
1Up to Rs 5,00,000No tax / exempt
25,00,001 to 10,00,00020%
3Above 10,00,00030%
New Income Tax Slabs for AY 2017-18 for Resident Women (below 60 years) (FY 2016-17)
1Up to Rs 2,50,000No tax / exempt
22,50,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
New Income Tax Slabs for AY 2015-16 for Others & Men (FY 2016-17)
1Up to Rs 2,50,000No tax / exempt
22,50,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%

For normal category the simple calculation is as follows

  • Taxable Income in 10% slab maximum tax will be Rs  25000
  • Taxable Income in 20% slab maximum tax will be Rs  25000 + Rs 1,00,000 total Rs 1,20,000
  • Taxable Income in 30% slab minimum tax will be Rs  Rs 1,50,000

Education and other cess will be in addition to this.

Income tax slab for year 2015-16 for which return is to be filed till 31st July 2016

As a reference the income tax rates for the previous year 2015-16 assessment year 2016-17 were as follows. You will be filing these returns this year. Please note that the late date for filing of income tax is 31st July 2016.

Income Tax Slabs for AY 2016-17 for Resident Senior Citizens above 60 years (FY 2015-16)
S. No.Income RangeTax percentage
1Up to Rs 3,00,000No tax / exempt
23,00,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
 Income Tax Slabs for AY 2016-17 for Resident Senior Citizens above 80 years (FY 2015-16)
S. No.Income RangeTax percentage
1Up to Rs 5,00,000No tax / exempt
25,00,001 to 10,00,00020%
3Above 10,00,00030%
Income Tax Slabs for AY 2016-17 for Resident Women (below 60 years) (FY 2015-16)
1Up to Rs 2,50,000No tax / exempt
22,50,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%
Income Tax Slabs for AY 2015-16 for Others & Men (FY 2015-16)
1Up to Rs 2,50,000No tax / exempt
22,50,001 to 5,00,00010%
35,00,001 to 10,00,00020%
4Above 10,00,00030%

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