The new income tax slab rate has been announced. The latest income tax slab rate is not as per the expectations.
There is no change in tax slab rate. The tax free income remains 2.5
lakh. There is some concession in medical insurance. But 80C limit of Rs
1.5 lakh will remain for another one year. Rather income tax surcharge
is increased. However, investment in New Pension Scheme will give you
extra tax saving.
Now giving you the tax slab and rates of the financial year
2015-16. These tax rates are applicable on the income earned during 1
April 2015-31 march 2016. For tax saving investments in 2015-16.
you should take account of this income tax slab rate. The assessment of
income tax according to this slab rate will be done in the year
2016-17. It means you have to apply these rates while filing the income tax return in the 2016.
Besides the income tax rates, 12% surcharge is also charged if total
taxable income exceeds Rs 1 Crore. However, marginal relief is given in
such cases.
Income tax slab rate is different for different class of taxpayers. These different classes are.
- Individual/HUF
- Senior Citizen
- Super Senior citizen
I am giving the
income tax slab rate of FY 2015-16 for
every class. Government usually tries to give you some tax saving every
year. Last year, individual taxpayer benefited by minimum Rs 3,120 due
to change in income tax slab. Let us see how much will you save this
year.
Individual Aged Below 60 Or HUF
This income tax slab is for individual who is born on or after 1
ST April 1955.
The slab is also for Non Resident Indian, Hindu undivided
family, Association of Persons, Body of Individuals and Artificial
Judicial Person.
Income Slab
|
Tax Rate
|
| Taxable income is less than Rs. 2,50,000 |
NIL |
| Taxable income is more than Rs. 2,50,000 but less than Rs. 5,00,000 |
10% of the amount above and over 2,50,000. |
| Taxable income is more than Rs. 5,00,000 but less than Rs. 10,00,000 |
Rs. 25,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000 |
| Taxable income is more than Rs. 10,00,000 |
Rs. 1,25,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,00 |
Education Cess
Besides the tax rate, cess is also charged on the tax. The cess is
3%. Because of this cess the effective tax rates translates into 10.3%,
20.6% and 30.9% according to the slabs.
Effective Tax Rate
| Income Slab |
Tax Rate |
Education Cess |
Aggregate Tax Rate |
| 0 – 2.5 Lakh |
Nil |
Nil |
Nil |
| 2.5 – 5.0 Lakh |
10.00% |
3.00% |
10.30% |
| 5.0 – 10.0 Lakh |
20.00% |
3.00% |
20.60% |
| Above 10 Lakh |
30.00% |
3.00% |
30.90% |
For Senior Citizen
This tax slab is for individuals whose age is more than 60 but less than 80.
For this tax slab, one should be born on or after 1st April 1935 but before 1st April 1955.
| Income Slab |
Tax Rate |
| Taxable income is less than Rs. 3,00,000 |
nil |
| Taxable income is more than Rs. 3,00,000 but less than Rs. 5,00,000 |
10% of the amount above and over 3,00,000. |
| Taxable income is more than Rs. 5,00,000 but less than Rs. 10,00,000 |
Rs. 1,20,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000 |
| Taxable income is more than Rs. 10,00,000 |
Rs. 1,20,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,00 |
Education Cess
Senior citizens are also required to pay education cess similar to other individuals.
Effective Tax Rate of senior Citizens
| Income Slab |
Tax Rate |
Education Cess |
Aggregate Tax Rate |
| 0 – 3.0 Lakh |
Nil |
Nil |
Nil |
| 3.0 – 5.0 Lakh |
10.00% |
3.00% |
10.30% |
| 5.0 – 10.0 Lakh |
20.00% |
3.00% |
20.60% |
| Above 10 Lakh |
30.00% |
3.00% |
30.90% |
For Super Senior Citizens
This income tax slab is for the individual who is more than 80 years old.
To get the benefit of this tax slab, one should be born before 1st April 1935.
Income Slab
|
Tax Rate
|
| Taxable income is less than Rs. 5,00,000 |
Nil |
| Taxable income is more than Rs. 5,00,000 but less than Rs. 10,00,000 |
20% of the amount by which the taxable income exceeds Rs. 5,00,000 |
| Taxable income is more than Rs. 10,00,000 |
Rs. 1,00,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,00 |
Education Cess
Super senior citizens are also not spared of education cess. They need to pay 3% cess on the tax.
Effective Tax Rate for Super Senior Citizens
| Income Slab |
Tax Rate |
Education Cess |
Aggregate Tax Rate |
| 0 – 5.0 Lakh |
Nil |
Nil |
Nil |
| 5.0 – 10.0 Lakh |
20.00% |
3.00% |
20.60% |
| Above 10 Lakh |
30.00% |
3.00% |
30.90% | | | |
