Income Tax Slab for Financial year 2015-16 – Budget 2015


Income Tax Slab for Financial year 2015-16 – Budget 2015

As the budget for the Financial Year 2015 – 16 is announced by the Finance Minister Arun Jaitley, most of the entities will be interested in knowing the income tax slab and the tax rates applicable on them for the Financial Year 2015 – 16 i.e. Assessment Year 2016 – 17. Let us go through the income tax slabs and rates applicable thereon for various kinds of assesses.

  1. Income Tax Slabs for Individual, Hindu undivided family (HUF), association of persons (AOP), body of individuals (BOI), artificial juridical person: The slab rates for above stated persons are provided in Paragraph A of Part-III of First Schedule to the Bill which are as follows:
    1. In case of individuals other then those mentioned below in ‘b’ and ‘c’, every Hindu Undivided Family, every association of persons or body of individual, irrespective of the fact that they are incorporated or not, every artificial juridical person as specified in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act but not the one to which any other paragraph of Part III applies, the income tax slab rates will be as follows:
SlabTax Rate
≤ Rs. 2,50,000NIL
From Rs. 2,50,001 to Rs. 5,00,00010% of the amount exceeding Rs. 2,50,000.
From Rs. 5,00,001 to Rs. 10,00,00020% of the amount exceeding Rs. 5,00,000 Plus Rs. 25,000.
> Rs. 10,00,00030% of the amount exceeding Rs. 10,00,000 Plus Rs. 1,25,000.

 

  1. Income Tax slab rates for individuals who is a resident in India who have during the previous year, attained the age of 60 years or more but less then 80 years are given below:
SlabTax Rate
≤ Rs. 3,00,000NIL
From Rs. 3,00,001 to Rs. 5,00,00010% of the amount exceeding Rs. 3,00,000.
From Rs. 5,00,001 to Rs. 10,00,00020% of the amount exceeding Rs. 5,00,000 Plus Rs. 20,000.
> Rs. 10,00,00030% of the amount exceeding Rs. 10,00,000 Plus Rs. 1,20,000.
  1. Income Tax slab rates for individuals who is a resident in India who have attained in the previous year the age of 80 years or more and who are known as super senior citizens, are given below:
SlabTax Rate
≤ Rs. 5,00,000NIL
From Rs. 5,00,001 to Rs. 10,00,00020% of the amount exceeding Rs. 5,00,000.
> Rs. 10,00,00030% of the amount exceeding Rs. 10,00,000 Plus Rs. 1,00,000.

 

The finance bill has introduced an extra surcharge of 2% on the income of super rich individuals. The previous rate of surcharge on super rich was 10% but now the same will be 12%. Thus, the assessees who earn taxable income of above Rs. 1 Crore will be liable to pay surcharge at the rate of 12% on the income tax payable by assessee. IN the case where surcharge is payable, a relief is also available. The same is that in case the aggregate amount of tax and surcharge payable on income exceeding Rs. 1 crore exceeds the amount of income exceeding Rs. 1 Crore then the lower of the both is payable.

  1. Co-operative Societies: The income tax slabs and rates of income tax applicable thereon on the income earned by the Co-operative society are same as those were applicable for the Financial Year 2014 – 15. the rates applicable to co-operative societies are provided in Paragraph B of Part III of the First Schedule to the Bill and the rates are as follows:

SlabTax Rate
≤ Rs. 10,00010% of the amount upto Rs. 10,000.
From Rs. 10,000 to Rs. 20,00020% of the amount exceeding Rs. 10,000 Plus Rs. 1,000.
> Rs. 20,00030% of the amount exceeding Rs. 20,000 Plus Rs. 3,000.

 

In the case of co-operative society also, surcharge @ 12% will be applicable on the amount of income tax where the amount of total income of the society exceeds Rs. 1 crore. It means that where the total income of the assessee exceeds Rs. 1 crore, 12% surcharge is payable on the amount of income tax payable. It is also provided that the amount of tax and surcharge payable on amount of income exceeding Rs. 1 Crore will be payable subject to the amount of income exceeding Rs. 1 Crore.

  1. In case of Firms: Paragraph C of Part III of the First Schedule to the Bill provides tax rate applicable to the Firms. The tax rate applicable for the Firms for the Financial Year 2015-16 will be 30% which is same as was applicable in the previous year. The clauses of surcharge will also applicable to the firms as are applicable in 1 and 2 above.
  1. In case of Local Authorities: The subsequent paragraph i.e. Paragraph D of Part III of the First Schedule to the Bill is the place where one can find the tax rate applicable to the local authorities and the same is provided @ 30% for the Financial Year 2015-16.

Local Authorities are also liable to pay surcharge @ 12% on the amount of income tax payable in case the total income of any Local Authority exceeds Rs. 1 Crore in the previous year. It will also be made available with a relief in case the aggregate amount of income tax and surcharge payable on the amount that exceeds income of Rs. 1 Crore is in excess of such income exceeding Rs. 1 crore then the amount payable will be the lower one.

  1. In case of Companies: The Companies have to pay income tax as per the rates provided in Paragraph E of Part III of the First Schedule to the Bill. Thus, the income tax rates applicable for companies for the Financial Year 2015 – 16 will be as follows:
ParticularsTax Rate
In case of a domestic company30% of the total income.
In case of a company other than a domestic company40% of the total income.

 

Specified Royalties   and fees for rendering technical services received from Government or an Indian concern with regards to an approved agreement made by the company with the Government or Indian concern between 1..1961 and 31.3.1976 in case of royalties and between 1.3.1964 and 31.3.1976 in case of FTS would be chargeable to tax @ 50%.

Surcharge is also applicable to the companies as follows:

  • In case where the total income of the company exceeds Rs. 1 Crore but is less then Rs. 10 Crores:
ParticularsTax Rate
In case of a domestic company7% of the income tax.
In case of a company other than a domestic company2% of the income tax.

             

However the relief will be available in case where the amount payable as income tax as well as surcharge on the part of income exceeding Rs. 1 Crore exceeding the total income over Rs. 1 Crore. In such case, the lower amount will be payable.

 

  • In case where the total income of the company exceeds Rs. 10 Crores:
ParticularsTax Rate
In case of a domestic company12% of the income tax.
In case of a company other than a domestic company5% of the income tax.

 

Here also the relief as in the above case will be available. Just replace the words “Rs. 10 Crores” in place of “Rs. 1 Crore”.

The rates in force of “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall be in force for the Financial Year 2015-15 @ 2% and 1% of the income tax respectively.


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