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