Income Tax Slabs for FY 2016-17 (AY 2017-18)

Income Tax Slabs for FY 2016 -17

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.

Income Tax Slabs:

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:

  1. Below 60 years of age
  2. Senior Citizens (60 to less than 80 years of age)
  3. Very Senior Citizens (80+ years of 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 Tax Slab for HUFs & Individuals (below 60 years – for both Men & Women)

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%
  • Surcharge: 15% 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
  • Rebate under Section 87A: Rs 5,000 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs

Download: Excel based Income Tax Calculator for FY 2016-17 [AY 2017-18]

Income tax slab for senior citizens (60 years to less than 80 years old) (both men & women)

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%
  • Surcharge: 15% 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
  • Rebate under Section 87A: Rs 5,000 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs

Download:Tax Planning Guide for FY 2016-17

Income tax slab for Very senior citizens (80 years or more) (both men & women)

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%
  • Surcharge: 15% 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
  • Rebate under Section 87A: Rs 5,000 or 100% of income tax (whichever is lower) for individuals with income below Rs 5 Lakhs

Income tax slab for Domestic Companies:

Company Turnover Tax Rate
Less than 5 crore 29%
More than 5 crore 30%
Surcharge:

  • 7% surcharge if the income is more than 1 crore but less than 10 crore
  • 12% surcharge if the income is more than 10 crore

Education Cess: 2% cess on income tax including surcharge

Secondary and Higher Education Cess: 1% cess on income tax including surcharge

Income tax slab for Partnership Firm:

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

Capital Gains Tax Rates:

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

2 thoughts on “Income Tax Slabs for FY 2016-17 (AY 2017-18)

  1. Can we claim deduction for investment in mahila pradhan kshetriya bachat yojana? If yes under which section?

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