- Tax slabs for Individuals of below 60 years (Born on or after 01.04.1956).
A). Up to Rs.2, 50,000: – Nil
B). From Rs.2, 50,001 to Rs.5, 00,000:– 10% on taxable income which exceeds Rs. 2, 50,000/-.
C). From Rs.5, 00,001 to Rs.10, 00,000:- 20% [Rs.25, 000/-+ 20% on amount which exceeds Rs. 2, 50,000/-]
D). Above Rs.10, 00,000:- 30% [Rs. 125,000/- + 30% of the amount by which the taxable income exceeds Rs. 10, 00,000/-]
* Eligible for Tax Credit of 10% of taxable income. (maximum of Rs. 2000/-) u/s.87A up to the taxable income of Rs.500000/-.
- Tax slabs for Senior Citizen (Born on or before 31.03.1956).
A). Up to Rs.300000 – Nil
B). From Rs.300001 to Rs.5, 00,000 – 10% on taxable income which exceeds Rs. 300000/-.
C). From Rs.5, 00,001 to Rs.10, 00,000- 20% [Rs. 20,000/- + 20% of the amount by which the taxable income exceeds Rs. 5, 00,000/-.]
D). Above Rs.10, 00,000- 30% [Rs. 120,000/- + 30% of the amount by which the taxable income exceeds Rs. 10, 00,000/-]
* Eligible for Tax Credit of 10% of taxable income. (maximum of Rs. 2000/-) u/s.87A up to the taxable income of Rs.500000/-.
- Tax slabs for Senior Citizen (Born on or before 31.03.1936)
A). Up to Rs.500000: – Nil
B). From Rs.5, 00,001 to Rs.10, 00,000:- 20% on taxable income which exceeds Rs.500000/-
C). Above Rs.10, 00,000:- 30% [Rs. 100000/- + 30% of the amount by which the taxable income exceeds Rs. 10, 00,000/-].
Key tax legislations for the FY 2015-16(AY 2016-17)
- The income tax slabs fixed for FY 2014-15 remain unchanged for FY 2015-16.
- The education cess for all tax payers shall continue at 3 per cent.
- Health Insurance Premium deduction for individuals below 60 years increased from Rs.15000/- to Rs.25000/-.Exemption for senior citizen increased from Rs.20000/-to Rs.30000/-. Additional deduction of Rs.25000/- allowed on medical insurance of parents (or Rs.30000/- in case parent/s is above 60 years). The amount spent on preventive check-up (maximum of Rs.5000/-) is subsumed under the above limits.
- Deduction limit rose to Rs.150000/- from Rs.100000/- on contribution to National Pension scheme u/s 80C.
- Additional deduction of Rs.50000/= towards contribution to New Pension Scheme (NPS) by the employees is allowed under section 80 CCD(1)
- Transport allowance exemption increased to Rs.1600 from Rs.800 per month.
- 2% surcharge on income over Rs.one crore per annum.
- Wealth tax is abolished.
- 100% tax exemption on contribution towards Clean Ganga Fund & Swacch Bharat Kosh.
- 30% Standard deduction is available on Income from House Property, which is not self- occupied
- Income to be considered as deemed let out on second House property (not occupied).
- For self-occupied house property, deduction of Interest on Housing Loan is allowed up to Rs. 200000/- . Further, deduction of entire amount of interest paid on housing loan when the house is not self- occupied (Let out).
Disclaimer: The tax slabs and deductions/exemption under various sections of income tax rules illustrated above are based on our understanding of current tax legislation in India. It is possible that any mistake, errors, ambiguity, inconsistency, discrepancy or doubts may inadvertently creep up in those illustrations. Such mistakes or errors noticed by anyone may please be brought to the notice of the author for the rectification. For clarifications or interpretations, if any, the readers are suggested to cross check all the facts with their tax consultants and also be guided with the original circulars or notifications issued from time to time by Income Tax Department.It is notified that the author or publisher of the article in this website cannot be held responsible for any decision taken and/or decision made on account of articles published in this website. It is further notified that no one connected directly or indirectly to this website is responsible for any damage or loss or action of any kind, in any manner, therefrom.
