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Income Tax Rates / Tax Slab for FY 2015-2016 (AY 2016-2017)

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Income Tax Slab / Rates applicable in India for Individuals, Hindu Undivided Family (HUF), Association of Persons (AOP) and Body of Individuals (BOI):

For Individuals below 60 years age (including Woman Assessees)
   
upto Rs 2.50 Lakh NIL
Rs 2.50  lakh – Rs 5 Lakh 10% on amount exceeding Rs 2.50 lakh
Rs 5 lakh – 10 Lakh  Rs 25000 + 20% of amount exceeding Rs 5 Lakh
above Rs 10 akh Rs 125000 + 30% of amount exceeding Rs 10 lakh

 

For Individuals aged 60 years and above but below 80 years (Senior Citizen)
   
upto Rs 3 Lakh NIL
Rs 3 lakh – Rs 5 Lakh 10% on amount exceeding Rs 3 lakh
Rs 5 lakh – 10 Lakh  Rs 20000 + 20% of amount exceeding Rs 5 Lakh
above Rs 10 Lakh Rs 120000 + 30% of amount exceeding Rs 10 lakh

 

For Individuals aged 80 years and above (Very Senior Citizen)
   
Upto 500,000 Nil
500,000 to 1,000,000 20% of the amount exceeding 500,000
1,000,000 & above Rs.100,000 + 30% of the amount exceeding 1,000,000

3.   Surcharge on Income Tax –  If the total taxable income exceeds Rs 1 crore ,  there will be surcharge of 12% of Tax payable ( not 10% of income)

4.  Education Cess:  3% of Income Tax plus Surcharge  (applicable for every assesse)

5. Section 80C gives deduction for various savings schemes upto Rs. 1.50 lakhs  and additional deduction of Rs.50,000 towards investment in NPS under 80CCD (1b). Check various deductions you can claim while computing your tax. Read Article here

If you have any queries related to this article or any other personal finance query ( Investment, Taxation etc), please comment below

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10 comments

  1. Sir,
    In FY 2013-14 (AY2014-15) I have gifted my wife Rs 9 lacs which she put in FD in her name and got interest of approx Rs 63,330. This interest I have clubbed with my income and paid income tax accordingly. Now in FY 2014-15 (AY 2015-16) she has reinvested the entire amount ( principal plus interest) in same bank FD and again got interest income of approx Rs 91,325.
    Please guide me whether the amount of Rs 91,325 is again to be clubbed with my income for FY 2014-15 ? Or can she now file IT return showing it as her income ? Or is there some other rule on the subject ?
    Thank you.

    • Ideally, the interest earned on 9 lakhs should be clubbed again with your income. Any income generated on the Interest income may not be clubbed.
      So interest earned on 9 lakh – clubbed
      & interest earned on 63330 – not clubbed

  2. Hello vivek,
    I have read your articles and your comments on few questions and seems very happy to see your helping nature. Sir I have a question on tds deduction on fd. Sir I had deposited an amount of ( 1,24,972rs ) on for a fd of term 3 years on behalf of my sister name and after 3 years this amount should be ( 1,62,026rs ) at a rate of 8.75perannum . The period was from ( 12-05-2012 ) to ( 12-05-2015 ). Now when we go to bank for renew this fd an amount of 8,000rs was deducted as tds since we have not submitted pan no and also not 15g form. My sister is a house wife with no income. Kindly help me to get that amount back.
    Thanks

    • Hi Gaurav,

      If the FD interest is more than Rs 10000 in an year, TDS is deducted @10%. But if no PAN is provided, TDS will be deducted @ 20%.

      Now, the option you have is
      1) Apply for PAN card for your sister. it is straight forward. You will get it in a month by paying Rs 106
      https://tin.tin.nsdl.com/pan/

      2) Once you get your PAN, go to bank and ask them to show the TDS deducted against this PAN

      3) Once that is done, you need to file Income tax returns & claim the TDS amount as refund.

  3. Hi Vivek,

    I am a married and unemployed woman. my husband is working in software company. My father gave me 5 lakhs on this april and i put in FD for 2 years. So please advise me do i have to pay tax for this interest i am getting from this FD. my father has only agriculture income which is less than 1 lakh per year.

    • Hi Ramya,

      As the money is give by your father, the income will not be added to your husband.

      You will be responsible for any tax. If you make FD of Rs 5 lakh and donot file return, you will get tax compliance notice.

      So it is better to do the FD, file Form 15G/H in the bank for non filing of TDS. Also file the income tax return even if the income is below taxable limit.

  4. Hi Manish,

    I am a software engineer. My wife got a marriage gift on our marriage time nearly 15 lacs including from her father and all relatives at 3 years before. she gave that money to my father for our agriculture land clean up. now my father gave 5 lacs to my wife and she put a FD last year (jun-2014). and again my father gave 5 lacs on this year (apr-2015) again she put a FD. so now she has totally 10 lacs in FD in her name and both she submitted FORM15G. whatever my father gave all are his agriculture income and all he deposited as a money in her bank account. and my wife is a home maker and she does not have any other income. so I heard from my friends i need to have a proof to show all the money in her name otherwise it will be considered as my money and i have to pay tax for the FD interest. please let me know is it correct. if it is how to make the proof of the gift money. even i dont have any proof for the money given to my father. please advice.

    • Hi Kumar,

      the money received initially was gift to your wife. then your wife gave it to your father and now your father is returning the money.
      So, may be on plain paper, you can make the agreement and keep it with you.

      As it is her money, it will not be added to your income. The interest earned will be your wife’s income. Make sure that you file the return even if the income is below taxable limit becuase you may get compliance notice otherwise (as FD amount is large).

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