For salaried individuals, no changes have been made to the income tax rates proposed in 2017. However, the 3% Education Cess from the previous year has been replaced with a 4% “Health and Education Cess”. Furthermore, a standard deduction of Rs 40,000 has been introduced for all salaried individuals for transportation or medical reimbursement purposes.
The following income tax slab will help you in calculating your taxable income for all types of income slabs.
| Annual Income | Tax Rates | Health and Education Cess |
|---|---|---|
| Up to Rs.2,50,000 | Nil | Nil |
| Rs.2,50,001-Rs.5,00,000 | 5% | 4% of income tax |
| Rs.5,00,001-Rs.10,00,000 | Rs.12,500 + 20% | 4% of income tax |
| Above Rs.10,00,000 | Rs.1,12,500 + 30% | 4% of income tax |
Tax applicable for individuals over 60 years and under 80 years
| Annual Income | Tax Rates | Health and Education Cess |
|---|---|---|
| Up to Rs.3,00,000 | Nil | Nil |
| Rs.3,00,001-Rs.5,00,000 | 5% | 4% of income tax |
| Rs.5,00,001-Rs.10,00,000 | Rs.10,000 + 20% | 4% of income tax |
| Above Rs.10,00,000 | Rs.1,10,000 + 30% | 4% of income tax |
Tax applicable for individuals over 80 years and above
| Annual Income | Tax Rates | Health and Education Cess |
|---|---|---|
| Up to Rs.5,00,000 | Nil | Nil |
| Rs.5,00,001-Rs.10,00,000 | 20% | 4% of income tax |
| Above Rs.10,00,000 Rs.1,12,500 | Rs.1,00,000 + 30% | 4% of income tax |
TDS should be deducted at applicable rates as above along with surcharge and Health and Education Cess.
Income tax slabs for Financial Year 2015 – 2016
Tax applicable for men below 60 years
| Annual Income | Rate |
|---|---|
| Income up to Rs.2,50,000 | Nil |
| Income between Rs.2,50,001 – Rs.500,000 | 10% of Income exceeding Rs 2,50,000 |
| Income between Rs.500,001 – Rs.10,00,000 | 20% of Income exceeding Rs 5,00,000 |
| Income above Rs.10,00,000 | 30% of Income exceeding Rs.10,00,000 |
Tax applicable for women below 60 years
| Annual Income | Rate |
|---|---|
| Income up to Rs.2,50,000 | Nil |
| Income between Rs.2,50,001 – Rs.500,000 | 10% of Income exceeding Rs.2,50,000 |
| Income between Rs.500,001 – Rs.10,00,000 | 20% of Income exceeding Rs.5,00,000 |
| Income above Rs.10,00,000 | 30% of Income exceeding Rs.10,00,000 |
Tax applicable for Senior Citizens (Age 60 years or more but less than 80 years)
| Annual Income | Rate |
|---|---|
| Income up to Rs.3,00,000 | Nil |
| Income between Rs.3,00,001 – Rs.500,000 | 10% of Income exceeding Rs.3,00,000 |
| Income between Rs.500,001 – Rs.10,00,000 | 20% of Income exceeding Rs.5,00,000 |
| Income above Rs.10,00,000 | 30% of Income exceeding Rs.10,00,000 |
Tax applicable for Senior Citizens (Age 80 years or more)
| Annual Income | Rate |
|---|---|
| Income upto Rs.5,00,000 | Nil |
| Income between Rs.500,001 – Rs.10,00,000 | 20% of Income exceeding Rs.5,00,000 |
| Income above Rs.10,00,000 | 30% of Income exceeding Rs.10,00,000 |
