Today we are discussing on INCOME TAX SLAB RATE FOR ASSESSMENT YEAR 2015-2016 of all form of business, In recent budget there are two major changes in income tax limit for Individual assessee limit is increased by 50,000 from 2,00,000 to 2,50,000 and for Senior citizen individual assessee limit is increased from 2,50,000 to 3,00,000.
Income tax slab rate for Assessment year 2015-16 of all the assessee are as Follow –
(I)Resident Individual whose age is below the 60 years at any time during the financial year/ Hindu Undivided Family/Association of person/Body of Individual/Non-resident Individual/Artificial Judicial Person:
Income Tax –
| Total Income Slabs | Tax Rates |
| Total Income is Rs. 2,50,000 or less | No tax |
| Total Income Exceeds Rs. 2,50,000 but less than Rs. 5,00,000 | 10% of the amount by which total income exceeds Rs. 2,50,000/- |
| Total Income Exceeds Rs. 5,00,000 but less than Rs. 10,00,000 | 20% of the amount by which total income exceeds Rs. 5,00,000 + Rs. 25,000 |
| Total Income Exceeds Rs. 10,00,000 | 30% of the amount by which total income exceeds Rs. 5,00,000 + Rs. 1,25,000 |
Special benefits for resident individual – Government has given the special benefit to resident individual whose income is less than 5, 00,000 by way of relief u/s 87A – 10% of Taxable income upto a maximum of Rs. 2000.
Surcharge: Surcharge is payable @10% on income tax, if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
(II)Individual Resident whose age is 60 years or more but less than 80 years at any time during the Financial Year Concerned:
Income Tax
| Total Income Slabs | Tax Rates |
| Total Income is Rs. 3,00,000 or less | No tax |
| Total Income Exceeds Rs. 3,00,000 but less than Rs. 5,00,000 | 10% of the amount by which total income exceeds Rs. 3,00,000/- |
| Total Income Exceeds Rs. 5,00,000 but less than Rs. 10,00,000 | 20% of the amount by which total income exceeds Rs. 5,00,000 + Rs. 20,000 |
| Total Income Exceeds Rs. 10,00,000 | 30% of the amount by which total income exceeds Rs. 5,00,000 + Rs. 1,20,000 |
Special benefits for resident individual – Government has given the special benefit to resident individual whose income is less than 5, 00,000 by way of relief u/s 87A – 10% of Taxable income upto a maximum of Rs. 2000.
Surcharge: Surcharge is payable @10% on income tax , if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
(III) Individual Resident whose age is 80 years or more at any time during the Financial Year Concerned:
Income Tax
| Total Income Slabs | Tax Rates |
| Total Income is Rs. 5,00,000 or less | No tax |
| Total Income Exceeds Rs. 5,00,000 but less than Rs. 10,00,000 | 20% of the amount by which total income exceeds Rs. 5,00,000 |
| Total Income Exceeds Rs. 10,00,000 | 30% of the amount by which total igncome exceeds Rs. 5,00,000 + Rs. 1,00,000 |
Surcharge: Surcharge is payable @10% on income tax, if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
(IV) Tax slab rate of Partnership Firm/Limited Liability Partnership:
Income Tax
In partnership firm (registered or unregistered) and Limited Liability partnership (LLP) there is no basic exemption limit in Income Tax. Income tax is levied @ 30% on total income. (Excluding Short term Capital Gain & Long term capital gain which are taxable at different rate)
Surcharge: Surcharge is payable @10% on income tax , if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
(V) Tax Slab rate for Co-operative Society:
Income Tax
| Total Income Slabs | Tax Rates |
| Total Income is Rs. 10,000 or less | 10% of Total Income |
| Total Income Exceeds Rs. 10,000 but less than Rs. 20,000 | 20% of the amount by which total income exceeds Rs. 10,000 + Rs. 1000 |
| Total Income Exceeds Rs. 20,000 | 30% of the amount by which total income exceeds Rs. 20,000 + Rs. 3,000 |
Surcharge: Surcharge is payable @10% on income tax, if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
(VI) Tax slab rate for Local Authority:
Income Tax
In Local Authority there is no basic exemption limit in Income Tax. Income tax is levied @ 30% on total income.
Surcharge: Surcharge is payable @10% on income tax, if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
(VII) Tax slab rate for Domestic Company
Income Tax
In Domestic Company (private limited or public limited) there is no basic exemption limit in Income Tax. Income tax is levied @ 30% on total income.
Surcharge:
Surcharge is payable @5% on income tax after deducting tax rebate, if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Surcharge is payable @10% on income tax after deducting tax rebate, if total taxable income excess Rupees 10 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
(VIII) Tax slab rate for Company other than a Domestic Company
Income Tax:
- Tax @ 50% on some specific transaction (Royalty and Technical fees) with the government of India.
- @ 40% of the balance
Surcharge:
Surcharge is payable @2% on income tax after deducting tax rebate, if total taxable income excess Rupees 1 Crores. (Marginal Relief is available)
Surcharge is payable @5% on income tax after deducting tax rebate, if total taxable income excess Rupees 10 Crores. (Marginal Relief is available)
Education Cess is payable @ 3% on the total of Income Tax and Surcharge.
Marginal Relief under Income tax Act 1961:
Simple concept for the marginal relief is tax should not increased more than increase in income.
Marginal Relief will be – (Increase on Tax) Subtract (Increase on income)
Example Taxable income of an assessee (partnership firm) is one crore and one lakhs (1,01,00,000).
Income tax – 30, 00,000
Surcharge for partnership firm – 3, 00,000
Income above 1 crores – 1 lakhs
Marginal Relief will be –( 3,00,000- 1,00,000)
Marginal relief will be Rs 2, 00,000/-
