Knowing your income tax slab rate helps you get an idea of how much tax you will be paying in a year.
Income tax slab rates are reviewed by the government in Budget every year. But the tax slabs have not been changed for the last few years. Here is a primer on income tax slab rates for AY 2016-17 (FY 2015-16).
Knowing your income tax slab rate helps you get an idea of how much tax you will be paying in a year.
Individuals with taxable income below Rs 5,00,000 are allowed to claim a tax rebate of Rs 5,000 on tax payable from FY 2016-17. The limit was raised in Budget 2016 from Rs 2,000.
Super-rich individuals with an annual taxable income of over Rs 1 crore have to pay surcharge of 15 per cent. In Budget 2016, this limit was raised from 12 per cent.
Education Cess (EC) of 2 per cent and secondary and higher education cess (SHEC) of 1 per cent is levied on the tax payable.
Income Tax Slab Rates For individuals Below 60 Years Of Age:
| Income Tax Slab | Income Tax Rate |
| Income up to Rs. 2,50,000 | Nil |
| Income above Rs 2,50,000 but up to Rs 500,000 | 10% |
| Income above Rs 500,000 but up to Rs 10,00,000 | 20% |
| Income above Rs 10,00,000 | 30% |
For senior citizens above 60 years of age but less than 80 years: | Income Tax Slab | Income Tax Rate |
| Income up to Rs. 3,00,000 | Nil |
| Income above Rs 3,00,000 but up to Rs 500,000 | 10% |
| Income above Rs 500,000 but up to Rs 10,00,000 | 20% |
| Income above Rs 10,00,000 | 30% |
For super-senior citizens above 80 years of age: | Income Tax Slab | Income Tax Rate |
| Income upto Rs. 5,00,000 | Nil |
| Income above Rs 500,000 but up to Rs 10,00,000 | 20%
|
| Income above Rs 10,00,000 | 30% |
Essential Business Intelligence,
Continuous LIVE TV,
Sharp Market Insights,
Practical Personal Finance Advice and
Latest Stories — On NDTV Profit.
