Income Tax Slabs and Rates for FY 2015-16 and AY 2016-17

Income Tax Slabs and Rates for FY 2015-16 and AY 2016-17

The following INCOME TAX RATES ARE applicable for the Financial Year ending March 31, 2016 (i.e. Financial Year 2015-16) - Assessment Year 2016-17)

Every year the income tax rates are changed and it is important to get the latest income tax rates. We give below the Income Tax Rates and Slabs applicable for the FY 2015-16 or AY 2016-17.   [As there was no change in Income Tax slabs for FY 2015-16 (i.e. AY 2016-17), the following rates were also applicable for FY 2014-15 (AY 2015-16)

For Men/Women below 60 years of age		For Senior Citizens (Age 60 years or more but less than 80 years)		For Senior Citizens (Age 80 years or more)
Income Level	Tax Rate	Income Level	Tax Rate	Income Level	Tax Rate
Rs. 2,50,000	Nil	Upto Rs. 3,00,000	Nil	Upto Rs. 5,00,000	Nil
Rs. 2,50,001 - Rs. 500,000	10%	Rs. 3,00,001 - Rs. 500,000	10%	Rs. 5,00,001 - Rs. 10,00,000	20%
Rs. 500,001 - Rs. 10,00,000	20%	Rs. 500,001 - Rs. 10,00,000	20%	Above Rs. 10,00,000	30%
Above Rs. 10,00,000	30%	Above Rs. 10,00,000	30%

Thus, we can Say :-

1.     The basic exemption limit for individuals (i.e. below 60 years of age) is Rs 2.50 lakhs

2.     The basic exemption limit for Senior citizens (60 years to below 80 years) is : Rs 3.00 lakhs

3.     The basic exemption limit for Very Senior Citizens(80 years and above)  is Rs3.50 lakhs

* A tax rebate of Rs 2,000 from tax calculated will be available for people having an annual income upto Rs 5 lakh.   However, this benefit of Rs2,000 tax credit will not be available if you cross the income range of Rs 5 lakh.  Thus we can say that tax payable in 10% slab will be maximum Rs23,000 (taking into account Rs 2000 tax credit), but for people who fall in income range of Rs5 lakh and above, the tax will be Rs25,000 + 20% tax on income above Rs 5 lakh;

The education cess to continue at 3 percent.