Income Tax Slab Rate with Raised some Tax Section for FY 2015-16 i.e. AY 2016-17

The new income tax slab rate has been announced. The latest income tax slab rate is not as per the expectations.
There is no change in tax slab rate. The tax free income remains 2.5
lakh. There is some concession in medical insurance. But 80C limit of Rs
1.5 lakh will remain for another one year. Rather income tax surcharge
is increased. However, investment in New Pension Scheme will give you
extra tax saving.

1) You can get extra tax deduction up to Rs 50,000 by investing in New Pension Scheme.

2) The tax deduction limit for health insurance is also increased from 15,000 to 25,000. For the senior citizen this limit is now Rs 30,000.

3) Senior citizens who are older than 80 years and don’t have any health insurance, can claim tax deduction on medical expense of Rs 30,000.

4) From the financial year 2015-16 the the riches would have to pay more tax as surcharge is increased to 12%. Earlier it was 10%. Surcharge is levied upon those who earn more than Rs one core in a year.

5) Wealth tax is abolished.

6) Transport Allowance exemption limit is increased to 1,600/month. Earlier it was Rs 800/month.

Now  giving you the tax slab and rates of the financial year
2015-16. These tax rates are applicable on the income earned during 1
April 2015-31 march 2016. For tax saving investments in 2015-16.
you should take account of this income tax slab rate. The assessment of
income tax according to this slab rate will be done in the year
2016-17. It means you have to apply these rates while filing the income tax return in the 2016.
Besides the income tax rates, 12% surcharge is also charged if total
taxable income exceeds Rs 1 Crore. However, marginal relief is given in
such cases.
Income tax slab rate is different for different class of taxpayers. These different classes are.

  • Individual/HUF
  • Senior Citizen
  • Super Senior citizen

I am giving the income tax slab rate of FY 2015-16 for
every class. Government usually tries to give you some tax saving every
year. Last year, individual taxpayer benefited by minimum Rs 3,120 due
to change in income tax slab. Let us see how much will you save this
year.
income tax slab for 2015-16

Individual Aged Below 60 Or HUF

This income tax slab is for individual who is born on or after 1ST April 1955.

The slab is also for Non Resident Indian, Hindu undivided
family, Association of Persons, Body of Individuals and Artificial
Judicial Person.

Income Slab                                            

Tax Rate

Taxable income is less than  Rs. 2,50,000 NIL                                           
Taxable income is more than Rs. 2,50,000 but less than Rs. 5,00,000 10% of the amount above and over 2,50,000.
Taxable income is more than Rs. 5,00,000 but less than  Rs. 10,00,000 Rs. 25,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000
Taxable income is more than Rs. 10,00,000 Rs. 1,25,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,00

Education Cess

Besides the tax rate, cess is also charged on the tax. The cess is
3%. Because of this cess the effective tax rates translates into 10.3%,
20.6% and 30.9% according to the slabs.

Effective Tax Rate

Income Slab Tax Rate Education Cess Aggregate Tax Rate
0 – 2.5 Lakh Nil Nil Nil
2.5 – 5.0 Lakh 10.00% 3.00% 10.30%
5.0 – 10.0 Lakh 20.00% 3.00% 20.60%
Above 10 Lakh 30.00% 3.00% 30.90%

For Senior Citizen

This tax slab is for individuals whose age is more than 60 but less than 80.
For this tax slab, one should be born on or after 1st April 1935 but before 1st April 1955.

Income Slab Tax Rate
Taxable income is less than  Rs. 3,00,000 nil
Taxable income is more than Rs. 3,00,000 but less than Rs. 5,00,000 10% of the amount above and over 3,00,000.
Taxable income is more than Rs. 5,00,000 but less than  Rs. 10,00,000 Rs. 1,20,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000
Taxable income is more than Rs. 10,00,000 Rs. 1,20,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,00

Education Cess

Senior citizens are also required to pay education cess similar to other individuals.

Effective Tax Rate of senior Citizens

Income Slab Tax Rate Education Cess Aggregate Tax Rate
0 – 3.0 Lakh Nil Nil Nil
3.0 – 5.0 Lakh 10.00% 3.00% 10.30%
5.0 – 10.0 Lakh 20.00% 3.00% 20.60%
Above 10 Lakh 30.00% 3.00% 30.90%

For Super Senior Citizens

This income tax slab is for the individual who is more than 80 years old.
To get the benefit of this tax slab, one should be born before 1st April 1935.

Income Slab

Tax Rate

Taxable income is less than  Rs. 5,00,000 Nil
Taxable income is more than Rs. 5,00,000 but less than  Rs. 10,00,000 20% of the amount by which the taxable income exceeds Rs. 5,00,000
Taxable income is more than Rs. 10,00,000 Rs. 1,00,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,00

Education Cess

Super senior citizens are also not spared of education cess. They need to pay 3% cess on the tax.

Effective Tax Rate for Super Senior Citizens

Income Slab Tax Rate Education Cess Aggregate Tax Rate
0 – 5.0 Lakh Nil Nil Nil
5.0 – 10.0 Lakh 20.00% 3.00% 20.60%
Above 10 Lakh 30.00% 3.00% 30.90%

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