Income Tax Slab for FY 2016-17

income-tax-slab-for-fy-2016-17

Income Tax Slab Rates for FY 2016-17
(Assessment Year 2017-18)



Comparison of Income Tax Rates for FY 2016-17 Vs. FY 2015-16
The income tax slabs for all category of tax payers remain unchanged for the F.Y 2016-17 (A.Y.2017-18) as compared to F.Y 2015 -16 (A.Y.2016-17). However following extra tax reliefs are given to middle class for the F.Y 2016 -17.

S. No.
Nature of Relief
F.Y. 2015-16
F.Y. 2016-17
1
Rebate u/s 87A (if taxable income is less than 5 lacs)

2,000
5,000
2

Rent Deduction u/s 80GG


24,000
60,000
3

Additional deduction of Home Loan Interest u/s 80EE for first time home buyer in F.Y.2016-17(loan amount should be less than 35 lacs and the value of the house should not exceed 50 lacs)


-
50,000
4
Exemption limit for employer contribution into the pension fund of an employee
1,00,000
1,50,000
5

Tax Exemption for NPS Withdrawal


Fully Taxable
40% withdrawal amount of NPS would be exempted from the tax and 100% tax exempted if the NPS wealth given to the nominee after the death of subscriber.
6
Tax Exemption for  premature  EPF withdrawal 
Upto 30,000 exempted
Upto 50,000 exempted


Income Tax Slab Rates for FY 2016-17
The Income Tax Slab Rates can be divided in the following  three categories
1.      Individuals & HUF
2.      Co-operative Society
3.      Firms, Local Authority & Domestic Company

1.                  For Individuals & HUF :
S. No.
Income Tax Slabs
Individual below the age of 60 years and HUF
Individual age of 60 years or more but less than 80 years
Individual age of 80 years or more
1
If Taxable Income is Upto Rupees 2.5 lacs
NIL
NIL
NIL
2
If Taxable Income is More than 2.5 lacs upto 3 lacs
10%
NIL
NIL
3
If Taxable Income is More than 3 lacs upto 5 lacs
10%
10%
NIL
4
If Taxable Income is More than 5 lacs upto 10 lacs
20%
20%
20%
5
If Taxable Income is Above  10 lacs
30%
30%
30%

Surcharge : For the F.Y.2016-17 rate of surcharge is 15% (for FY 2015-16 was 12%) if the where income exceeds rupees one crore in a year.
Cess : Education Cess @ 2% and Secondary and Higher Education Cess @ 1% shall be levied on the income tax calculated as per the tax rates given in the above table plus on surcharge if applicable.
2.    For Co-operative Society :
Income Tax Slabs
Income Tax Rates
If the Total Income is less than Rs. 10,000
10%
If the Total Income is more than Rs. 10,000 but less than Rs. 20,000
20%
For the Income exceeding Rs. 20,000
30%

3.  For Firms, Local Authority and Domestic Company :

Income Tax Slab Rates wont apply in this case and Tax @ 30% flat shall be computed on the Total Income. Surcharge shall not be levied on Income of Firms and Local Authorities but shall be levied on the Total Income Tax of Domestic Companies @ 5% provided that the Total Income of the Domestic Company exceeds Rs. 1 Crore.
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