Income Tax Slab Rates for FY 2016-17 / AY 2017-18 (Budget 2016-17)

     The income tax slab rates are divided in to following categories:

A.INDIVIDUALS & HUF

1 For Men Below 60 Years Of Age

2. For Women Below 60 Years Of Age

3. For Senior Citizens (Age 60 years or more but less than 80 years)

4. For Senior Citizens (Age 80 years or more)

B.BUSINESSES

1.Co-operative  society

2.Firms,Local authority & Domestic Company

For Men Below 60 Years Of Age

Income Tax Slab	Income Tax Rate
Income upto Rs. 2,50,000	Nil
Income between Rs. 2,50,001 - Rs. 500,000	10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

For Women Below 60 Years Of Age

Income Tax Slab	Income Tax Rate
Income upto Rs. 2,50,000	Nil
Income between Rs. 2,50,001 - Rs. 500,000	10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax Slab	Income Tax Rate
Income upto Rs. 3,00,000	Nil
Income between Rs. 3,00,001 - Rs. 500,000	10% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 80 years or more)

Income Tax Slab	Income Tax Rate
Income upto Rs. 5,00,000	Nil
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

B.SLABS FOR BUSINESS

1. For Co-operative society

For Senior Citizens (Age 80 years or more)

Income Tax Slab	Income Tax Rate
Where the total income does not exceed 10000	10% of Income
Where the total income does not exceed 10000 but does not exceed 20000	20% of Amount by which it Exceeds 20000
Where the total income does  exceeds 20000	30% of Amount by which it Exceeds 20000

2.Firms,Local authority & Domestic Company

Income tax slab rates wont apply in this and Tax @ 30% flat shall be computed on 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 @ 15% Provided That the Total income of Domestic company Exceeds RS. 1 Crore  

Budget 2016-17 & Important Tax Proposals

• Deduction amount under 80GG increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all the individuals who do not own a residential house & do not get HRA (House Rent Allowance).
• Section 87A Rebate :. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs 5,000 in Budget 2016-17.The increased limit would be applicable for Financial Year  2016-17 which is beginning from 1^st April 2016.
• 15 % Surcharge on income of more than 1 crore rupees yearly has been proposed, earlier it was 10 %.
• National Pension System : 40% of corpus withdrawal at the time of retirement will be tax exempted.
• As per the Budget 2016 proposal, at the time of retirement, 40% of the EPF (Employees Provident Fund) lump sum withdrawal is tax-exempted, 60% of the corpus is taxable as per the applicable Income Tax Slab. To avoid this, the EPF member has to invest this 60% balance in an Annuity life insurance product. The Annuity income will be Tax-free. (Read : Latest EPF withdrawal rules 2016)
• Section 80EE – First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE.

• The home loan should have been sanctioned in FY 2016-17
• Loan amount should be less than Rs 35 Lakh
• The value of house should not be more than Rs 50 Lakh
• Budget 2016 proposes to levy 10% Dividend Distribution Tax (DDT) in the hands of the investor who receives dividend of Rs 10 Lakh or more in a financial year.
• Cash purchases of goods & services which are worth more than Rs 2 Lakh & purchases of car worth more than Rs 10 Lakh will be subject to TCS (Tax collection at Source). Tax at source of 1% on purchase of luxury cars would be levied.
• Budget 2016 has proposed to provide a limited period ‘Tax Compliance Window‘ for domestic taxpayers. This will be created between 1 June to 30th September to declare undisclosed income or income. To clear up their past tax transgressions,  the taxpayers will have to pay tax at 30%, and surcharge at 7.5% and penalty at 7.5%. So, the total applicable tax would be at 45% of the undisclosed income. They will have to pay up the taxes within two months of declaration.
• Levy of Infrastructure Cess on purchase of SUVs & Diesel cars.
• Krishi Kalyan cess at 0.5% on all taxable services effective from  1st June, 2016.