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Income Tax rate FY 2016-17& AY 2017-18

Income Tax rate FY  2016-17& AY 2017-18
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In the 2016 Budget, There has been no changes in the Income tax rate of FY 2015-15, The same rate will continue to follow in the Current Financial Year 2016-17 also.

In the recent past Income tax rule has categorised tax payers like, Senior Citizen, Male Below 60 Years, Female below 60 years, Super Senior citizen above 80 years etc. and Tax rate for these categorised tax payers are different and as follows.

Exemption Limit of Income Tax.

Income which are 250000 or below in a Financial Year do not comes under the ambit of Income tax for Individuals Below 60 years, 300000 is the Limit for Individuals Above 60 but below 80 years & 500000 for Super Senior Citizen Who are above the age of 80. An individual Who reaches the age of 60 or 80 at any time during the financial year, he is eligible for the reduction benefit.

An individual who earns less than  these limits need not pay tax.But There is no such Limitation for Business like Firms, LLP, Domestic & Foreign Company,Co- operative society. These institution must pay a Flat rate tax on all incomes earned.

Tax Rate for Male & Female Individual below 60 years & Hindu Undivided Family

  • No Surcharge Is applicable for This category
  • Education Cess @ 2% and secondary Higher Education Cess 1 % is applicable on Income Tax
Rate Applicable Income Slab
10% Income exceeds 250000 up to 500000
20% Income exceeds 500000 up to 1000000
30% 1000000 and above

When the total income of an individual exceeds 500000 , then his tax would be calculated as

Here is an illustration how Income tax calculated based on Slab Rate, same is applicable for all slab rate mentioned Here.

  • Income of MR.A 550000
  • Income Exempted  250000
  • Taxable income in 10 % slab = 250000
  • Taxable Income in 20 % slab=   50000
  • Income tax calculated 250000 x 10 %  = 25000+ 50000 x 20%  = 10000
  • Total Tax = 35000

Income Tax Rate for Senior Citizen but below age of 80

  • No Surcharge Is applicable for This category
  • Education Cess @ 2% and secondary Higher Education Cess 1 % is applicable on Income Tax

A senior citizen is a person whose age is 60 and above. Income tax rules have been giving some benefits for Senior citizen. Senior Citizen below the age of 60 are eligible for NIL rate up to 300000.

Rate of Tax Applicable Slab
10 % Income from 300000 up to 500000
20 % Income from 500000 up to 1000000
30 % Income above 1000000

Income Tax rate for Super Senior Citizen Above the age of 80

  • No Surcharge Is applicable for This category
  • Education Cess @ 2% and secondary Higher Education Cess 1 % is applicable on Income Tax

Super senior citizens who are above the age of 80 are allowed for an exemption of tax up to 500000.

Rate Applicable Income Slab
10% Income exceeds 250000 up to 500000
20% Income exceeds 500000 up to 1000000
30% 1000000 and above

Income Tax Rate for Co-operative Society

  • Surcharge 5 % Is applicable only in the case of Income Exceed 1 crore.
  • Education Cess @ 2% and secondary Higher Education Cess 1 % is applicable on Income Tax
Rate Applicable Income Slab
10% Income up to Rs 10000
20% Income from 10001 to 20000
30% 20000 and above

Income Tax Rate for Domestic Company,Firm, LLP & Local authority.

There is no slab rate is applicable for the said category and a flat 30 % of Income is applicable for total income earned from the business.

There is no surcharge applicable for Firm and Local authorities, But 5 % Surcharge is applicable for Domestic company if its income exceeds 1 crores

Read : Surcharge on income tax .

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