Normal tax rates applicable to an individual

The normal tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the tax rates will be same irrespective of his age. For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:

  • Resident individual below the age of 60 years. i.e. born on or after 1.4.1956
  • Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years. (i.e. born during 1-4-1936 to 31-3-1956)
  • Resident individual of the age of 80 years or above at any time during the year. i.e. born before 1.4.1936
  • Non-resident individual irrespective of the age.

Tax Slab for Individual below 60 Years

Net income range Income-tax rates Education Cess Secondary and higher Education Cess
Up to Rs. 2,50,000 Nil Nil Nil
Rs. 2,50,000 – Rs. 5,00,000 10% of (total income minus Rs. 2,50,000) [*] 2% of income-tax 1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000 Rs. 25,000 + 20% of (total income minus Rs. 5,00,000) 2% of income-tax 1% of income-tax
Above Rs. 10,00,000 Rs. 1,25,000 + 30% of (total income minus Rs. 10,00,000) 2% of income-tax 1% of income-tax

Tax Slab for Individual Senior Citizen – 60 to 80 Years

Net income range Income-tax rates Education Cess Secondary and higher Education Cess
Up to Rs. 3,00,000 Nil Nil Nil
Rs. 3,00,000 – Rs. 5,00,000 10% of (total income minus Rs. 3,00,000) [*] 2% of income- tax 1% of income-tax
Rs. 5,00,000 – Rs. 10,00,000 Rs. 20,000 + 20% of (total
income minus Rs. 5,00,000)
2% of income- tax 1% of income-tax
Above Rs.
10,00,000
Rs. 1,20,000 + 30% of (total income minus Rs. 10,00,000) 2% of income- tax 1% of income-tax

Tax Slab for Individual Super Senior Citizen – Above 80 Years

Net income range Income-tax rates Education Cess Secondary andhigher Education
Cess
Up to Rs. 5,00,000 Nil Nil Nil
Rs. 5,00,000 – Rs.
10,00,000
20% of (total income minus Rs. 5,00,000) 2% of income- tax 1% of income-tax
Above Rs. 10,00,000 Rs. 1,00,000 + 30% of (total
income minus Rs. 10,00,000)
2% of income- tax 1% of income-tax

Partnership Firm:

For the Assessment Year 2015-16 and 2016-17, a partnership firm (including LLP) is taxable at 30%.

Local Authority:

For the Assessment Year 2015-16 and 2016-17, a local authority is taxable at 30%.

Domestic Company:

For the Assessment Year 2015-16 and 2016-17, a domestic company is taxable at 30%.

Foreign Company:

Assessment Year 2015-16 and Assessment Year 2016-17

Nature of Income Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government 50%
Any other income 40%

Co-operative Society:

Assessment Year 2015-16 and Assessment Year 2016-17

Taxable income Tax Rate
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%

Note: Education Cess and Secondary Education Cess are applicable

a) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 b) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.