Income Tax Slabs for FY 2016 -17
Budget 2015 has made No change in the income tax slab. However it has increased the surcharge from 12% to 15% applicable for income above Rs 1 crore.
There is NO separate tax slab for men and women. Earlier women used to have slight benefit over men in terms of lower taxes!
The tax slabs are determined on age of person. As of today there are 3 slab rates based on age:
The table below gives the tax slab rates:
Also Read: What is the Maximum Income Tax You can Save for FY 2016-17?
| Income Slab | Tax Rate |
| Income up to Rs 2,50,000 | No Tax |
| Income from Rs 2,50,000 – Rs 5,00,000 | 10% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
| |
Download: Excel based Income Tax Calculator for FY 2016-17 [AY 2017-18]
| Income Slab | Tax Rate |
| Income up to Rs 3,00,000 | No Tax |
| Income from Rs 3,00,000 – Rs 5,00,000 | 10% |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
| |
Download:Tax Planning Guide for FY 2016-17
| Income Slab | Tax Rate |
| Income up to Rs 2,50,000 | No Tax |
| Income from Rs 2,50,000 – Rs 5,00,000 | No Tax |
| Income from Rs 5,00,000 – 10,00,000 | 20% |
| Income more than Rs 10,00,000 | 30% |
| |
| Company Turnover | Tax Rate |
| Less than 5 crore | 29% |
| More than 5 crore | 30% |
Surcharge:
Education Cess: 2% cess on income tax including surcharge Secondary and Higher Education Cess: 1% cess on income tax including surcharge | |
A partnership firm (including LLP) income is taxable at 30%.
Surcharge: 12% surcharge on income tax if the total income exceeds Rs 1 crore
Education Cess: 2% cess on income tax including surcharge
Secondary and Higher Education Cess: 1% cess on income tax including surcharge
Also Read: 25 Tax Free Incomes & Investments in India
Some income related to capital gains are taxed at special rates as shown below:
| Capital Gains | Tax Rate |
| Short term capital gains from assets (Other than shares & mutual funds) | At Income Tax Slab rates listed above |
| Long term capital gains from assets (Other than shares & mutual funds) | 20% (+3% edu cess) |
| Short term capital gains on shares and equity mutual funds | 15% (+3% edu cess) |
| Long term capital gains on shares and equity mutual funds | NIL |
| Short term capital gains on debt mutual funds | At Income Tax Slab rates listed above |
| Long term capital gains on debt mutual funds | At 20% (+3% edu cess) with indexation |
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View Comments
I have contributed to Life stage pension policy of a renowned MF Rs 50000 per year for 8 years. But in March 2017 i redeemed this policy and received the total amount as per NAV of units to my credit. The MF has not collected any TDS from the amount given to me. I want to know if this amount is to be included in my other income in FY 2016-17 and if income tax is to be deducted on the total income?
Pension policies are only sold by Insurance companies and are fully taxable if redeemed pre-maturely. I am surprised that no TDS was deducted. FOr pension policy the full amount redeemed has to be shown as income from other sources and taxed as per your slab.
Can we claim deduction for investment in mahila pradhan kshetriya bachat yojana? If yes under which section?
NO mahila pradhan kshetriya bachat yojana is NOT eligible for any tax benefit. Its just a regular investment in post office