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Tax Rates for Individuals for FY 2015-16

As per Income Tax Act, taxes are levied depending upon the age and residential status of the assessee. The tax rates may differ in every financial year depending upon the rates which are announced in the budget presented by the Finance Minister in the Parliament. The applicable tax rates for Individuals and HUF as per Financial Budget 2015 (for F.Y 2015-16 i.e. A.Y 2016-17) are as follows.

Tax Rates for Individuals for FY 2015-16

1. Resident Individual aged below 60 years

 

S.no Income Slabs Tax Rates
i Taxable Income Up to Rs. 2,50,000 Nil
ii Taxable Income from  Rs. 2,50,001 up to Rs 5,00,000 10% of income exceeding Rs 2,50,000
iii Taxable Income from  Rs. 5,00,001 up to Rs 10,00,000 20% of Income exceeding Rs 5,00,000
iv Taxable Income above Rs. 10,00,000 30% on amount exceeding Rs 10,00,000

 


2. Senior Citizens
Resident
Individual aged above 60 years but below the age of 80 years

 

S.no Income Slabs Tax Rates
i. Taxable Income up to Rs. 3,00,000 Nil
ii. Taxable Income from  Rs. 3,00,001 up to Rs 5,00,000 10% of income exceeding Rs 3,00,000
iii. Taxable Income from  Rs. 5,00,001 up to Rs 10,00,000 20% of Income exceeding Rs 5,00,000
iv. Taxable Income above Rs. 10,00,000 30% on amount exceeding Rs 10,00,000


3. Super Senior CitizenResident Individual aged above 80 years

 

S.no Income Slabs Tax Rates
i. Taxable Income up to Rs. 5,00,000 Nil
ii. Taxable Income above Rs. 5,00,001 up to Rs 10,00,000 20% of income exceeding Rs.5,00,000
iii. Taxable Income above Rs.10,00,000 30% of Income exceeding Rs 10,00,000

4. Non- Resident Individuals and HUF- Irrespective of Age

 

S.no Income Slabs Tax Rates
i. Taxable Income Up to Rs. 2,50,000 Nil
ii. Taxable Income from  Rs. 2,50,000 up to Rs 5,00,000 10% of income exceeding Rs 2,50,000
iii. Taxable Income from  Rs. 5,00,000 up to Rs 10,00,000 20% of Income exceeding Rs 5,00,000
iv. Taxable Income above Rs. 10,00,000 30% on amount exceeding Rs 10,00,000

 

 

In addition to these rates Education cess (EC) @ 2% of Income tax and Secondary & Higher Education cess (SHEC)@1% of Income tax is charged.

SurchargeIn case the Net income of an Individual exceeds Rs 1 crore Surcharge @12% on the amount of Income is charged. In a case where surcharge is levied, EC of 2% and SHEC of 1% will be levied on the amount of income-tax plus surcharge.

However, marginal relief is available from surcharge in such a manner that in the case of a person having a net income of exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

Rebate u/s 87A– A resident individual whose taxable income does not exceeds Rs 5,00,000 can claim rebate of 100% of income tax or Rs.2000 whichever is less. Benefit of rebate u/s 87A is not applicable for a Non- resident individual.

Now let us understand the above provisions with the help of some Examples


Ex 1. Mr. Roy being a resident Individual born on 05/07/1985 has a taxable Income (after considering income from all heads less deduction under chapter VI A) of Rs 12, 95,000

The Income tax payable by Mr. Roy is.

Up to Rs. 2,50000 Nil
Rs 250000 up to Rs 500000 Rs. 25000 (10% of Rs 250000)
Rs 500000 up to Rs 10,00,000 Rs. 100000 (20% of Rs 500000)
Remaining Rs 295000 Rs. 88500 (30% of Rs 295000)
                                                                                    Total Rs. 213500
EC+SHEC (3%) Rs. 6405 (3% of 213500)
Total Tax Payable for FY 2015-16 Rs. 219905

 

Ex 2.Let us assume DOB of Mr. Roy is 05/07/1941.

Now as per the DOB Mr. Roy is a Senior Citizen and the calculation of Income Tax will be as mentioned here under.

Up to Rs. 300000 Nil
Rs. 3,00,000 up to Rs. 5,00,000 Rs. 20,000
Rs. 5,00,000 up to Rs.10,00,000 Rs.1,00,000
Remaining Rs. 295000 Rs. 88,500
                                                                                    Total Rs.2,08,500
EC+SHEC (3%) Rs. 6,255 (3% of 208500)
Total Tax Payable for FY 2015-16 Rs. 2,14,755

 


Ex 3.Mr. Roy is a Non- Resident Individual or a HUF having taxable income of Rs 12, 95,000

In this case if we consider Mr. Roy as a HUF or as a NRI the calculation of Income Tax payable by Mr. Roy will be same in both the cases as the Income tax slab is same for NRI and HUF and the age of an Individual is irrelevant.

Up to Rs. 2,50,000 Nil
Rs 2,50,000 up to Rs 5,00,000 Rs. 25,000 (10% of Rs 2,50,000)
Rs 5,00,000 up to Rs 10,00,000 Rs. 1,00,000 (20% of Rs 5,00,000)
Remaining Rs 2,95,000 Rs. 88,500 (30% of Rs 2,95,000)
                                                                                    Total Rs. 2,13,500
EC+SHEC (3%) Rs. 6,405 (3% of 2,13,500)
 Total Tax Payable for FY 2015-16 Rs. 2,19,905

 

 

Ex.4 Mr. Roy is Resident individual born on 05/07/1985 having taxable income of Rs 4, 90,000

In this case Mr. Roy is a resident individual having a taxable income of Rs 4, 90,000 so he can claim rebate of Rs 2000 u/s 87A or 100% of tax to be paid whichever is less. The amount of tax to be paid is mentioned below.

Up to Rs. 2,50,000 Nil
Rs 2,50,000 to Rs 4,90,000 Rs.24,000 (10% of Rs2,40,000)
    Rebate u/s 87A Rs.2,000
                                                                                  Total Rs. 22,000
EC+SHEC (3%) Rs.660 (3% of 22000)
   Total Tax Payable for FY 2015-16 Rs 22,660

 

For further queries please visit our website www.makeyourtax.com or you can contact us at info@makeyourtax.com

 

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