IT SLAB

Your income is taxed according to income tax slab rates. Tax slabs have not changed since financial year FY 2014-15 (assessment year AY 2015-16). Income tax slab rates are same for these 3 financial years – FY 2014-15, FY 2015-16 and FY 2016-17.

Income Tax Slab Rates for FY 2015-16(AY 2016-17)
[These income tax slab rates are also applicable for FY 2016-17(AY 2017-18) and FY 2014-15(AY 2015-16)]

Income tax slab for individual tax payers & HUF (less than 60 years old) (both men & women)

Income Slab	Tax Rate
Income up to Rs 2,50,000	No Tax
Income from Rs 2,50,000 – Rs 5,00,000	10%
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.

Income tax slab for senior citizens (60 years old or more but less than 80 years old) (both men & women)

Income Slab	Tax Rate
Income up to Rs 3,00,000	No Tax
Income from Rs 3,00,000 – Rs 5,00,000	10%
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.

Income tax slab for super senior citizens (80 years old or more) (both men & women)

Income Slab	Tax Rate
Income up to Rs 2,50,000	No Tax
Income up to Rs 5,00,000	No tax
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 12% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.

How to calculate income tax from income tax slabs?
This example explains how to apply tax slabs to calculate income tax for FY 2015-16(AY 2016-17).

Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources such as salary, rental income and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues for FY 2015-16.

Income Slab	Tax Rate	Tax calculation
Income up to Rs 2,50,000	No tax
Income from Rs 2,50,000 – Rs 5,00,000	10% (Rs 5,00,000 – Rs 2,50,000)	Rs 25,000
Income from Rs 5,00,000 – 10,00,000	20% (Rs 8,00,000 – Rs 5,00,000)	Rs 60,000
Income more than Rs 10,00,000	30%	nil
Tax		Rs 85,000
Cess	3% of Rs 85,000	Rs 2,550
Total tax in FY 2015-16 (AY 2016-17)		Rs 87,550

Income tax slab for domestic companies for FY 2015-16(AY 2016-17)

If you are registered as a company, the income tax slab rates do not apply to you. Domestic companies are taxed at 30% on their total income. A 5% surcharge is payable if income is more than Rs 1 crore but less than Rs 10 crore. If total income is more than Rs 10 crore, 10% surcharge is applicable.

Some incomes are taxed at special rates

Although total income is taxable at income tax slab rates mentioned above. Some incomes are taxed at special rates.

Nature	Tax Rate
Short term capital gains from assets (Other than shares & mutual funds)	At Income Tax Slab rates listed above
Long term capital gains from assets (Other than shares & mutual funds)	20%
Short term capital gains on shares and equity mutual funds	15%
Long term capital gains on shares and equity mutual funds	NIL
Short term capital gains on debt mutual funds	At Income Tax Slab rates listed above
Long term capital gains on debt mutual funds	At 20% with indexation

How much Income Tax do I need to pay?

How much Income Tax do I need to pay?

How much tax you should pay depends upon the tax slab applicable to your income. Income tax is calculated on the basis of these tax slabs.

Income Tax Rates for taxpayers under 60 years of age in FY 2016-17, FY 2015-16, FY 2014-15 are below.

Income Slab	Tax Rate
Up to Rs.2,50,000	No Tax
Rs.2,50,000 - Rs.5,00,000	10%
Rs.5,00,000 - Rs.10,00,000	20%
Rs.10,00,000 and beyond	30%

Income Tax Rates for taxpayers under 60 years of age in FY 2013-14 are below.

Income Slab	Tax Rate
Up to Rs.2,00,000	No Tax
Rs.2,00,000 - Rs.5,00,000	10%
Rs.5,00,000 - Rs.10,00,000	20%
Rs.10,00,000 and beyond	30%

How to calculate income tax? (See example)

Income tax calculation for the Salaried
Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as medical reimbursements, telephone bills reimbursement. If you receive HRA and live on rent, you can claim exemption on HRA. Calculate exempt portion of HRA,
Transport allowance is given to employees as part of their salary to meet travel expenses from residence to work & back. Starting financial year 2015-16, limit of exemption on transport allowance is 1,600 per month or Rs 19,200 per annum. For example - if you receive Rs 2,000 as transport allowance every month, Rs 1600 shall be exempt from tax and remaining Rs 400 per month or Rs 4,800 per annum shall be taxed as salary income.
Let’s understand income tax calculation by way of an example. Neha receives a Basic Salary of Rs 50,000 per month. HRA of Rs 25,000. Transport Allowance of Rs 8,000 per month. Special Allowance of Rs 5,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 20,000 and lives in Delhi.

Nature	Amount	Exemption/Deduction	Taxable
Basic Salary	6,00,000	-	6,00,000
HRA	3,00,000	1,80,000	1,20,000
Transport Allowance	96,000	19,200	76,800
Special Allowance	60,000	-	60,000
LTA	20,000	12,000 (bills submitted)	8,000
Medical Bills	15,000	15,000(bills submitted)	-
Gross Total Income from Salary			8,64,800

To calculate income tax, include income from all sources. Include:

• Income from SALARY(salary paid by your employer)
• Income from house property (add any rental income, or include interest paid on home loan)
• Income from capital gains (income from sale purchase of shares or house)
• Income from business/profession (income from freelancing or a business or profession)
• Income from other sources (saving account interest income, fixed deposit interest income, interest income from bonds)

Neha has income from interest from savings account of Rs 8,400 and a fixed deposit interest income of Rs 5,500 during the year. Neha has made some investments to save income tax. PPF investment of Rs 50,000. ELSS purchase of Rs 20,000 during the year. LIC premium of Rs 8,000. Medical insurance paid of Rs 12,000. Here are the deductions Neha can claim.

Nature	Maximum Deduction	Eligible investments/expenses	Amount claimed by Neha
Section 80C	Rs.1,50,000	PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer(Neha’s contribution) = Rs 50,000 *12% *12 = 72,000	Rs 1,50,000
Section 80D	Rs 25,000 for self Rs 30,000 for parents	Medical insurance premium Rs 12,000	Rs 12,000
Section 80TTA	10,000	Savings account interest 8,400	Rs. 8,400

Calculation of gross taxable income in India

Nature	Amount	Total
Income from Salary	8,64,800
Income from Other Sources	18,400
Gross Total Income		8,83,200
Deductions
80C	1,50,000
80D	12,000	-
80TTA	8,400	1,70,400
Gross Taxable Income		7,12,800

How to calculate income tax in India for Neha

Up to Rs 2,50,000	Exempt from tax	0
Rs 2,50,000 to Rs 5,00,000	10% (10% of Rs 5,00,000 less Rs 2,50,000)	25,000
Rs 5,00,000 to Rs 10,00,000	20% ( 20% of Rs 7,12,800 less Rs 5,00,000)	42,560
More than Rs Rs 10,00,000	30% (nil)	0
Cess	3% of total tax (3% of Rs 25,000 + Rs 42,560)	2,026
Total Income Tax	Rs 25,000 + Rs 42,560 + 2,026	Rs 69,586.80