As per the Union Budget 2016 ,there has been no change in the Income tax slab rates for the financial year 2016-17.The Income tax slabs are the same as that of financial year 2015-16.

Income tax is calculated on the Taxable income of an assessee as per the Income tax slab rates that are applicable for the relevant financial year. Have a look at the Income tax slabs for the financial year 2016-17 .

Income tax slab rates for Financial year 2016-17 are as follows:

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You can also have a look at the Income tax slabs for financial year 2017-18

*Surcharge: As per Finance Budget 2016 Surcharge has been increased to 15% of the Income tax where taxable Income is greater than Rs.1 crore.( It was 12% for F.Y.2015-16).This means the super rich will have to shed more money out of their pockets.

*Education Cess : 2% of Total Income tax and surcharge.

*Secondary and Higher Education cess: 1% of Income tax and surcharge.

*Relief U/s 87A :For Individuals having Income less than 5 lakhs the Tax Relief U/s 87A increased from Rs.2000 to Rs.5000.

For additional details on Section 87A you can refer Tax relief under Section 87A

For timely filing of your Income tax returns, you must also check our popular blog post : 10 Documents required for E-filing – Just keep them ready !

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*NRI: Non Resident Individual, HUF:Hindu Undivided Family, AOP: Association of Persons, BOI:Body of Individuals and AJP : Artificial Judicial Person.

*Surcharge: As per Finance Budget 2016 Surcharge has been increased to 15% of the Income tax where taxable Income is greater than Rs.1 crore. ( It was 12% for F.Y.2015-16).

*Education Cess : 2% of Total Income tax and surcharge.

*Secondary and Higher Education cess: 1% of Income tax and surcharge.

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*Surcharge: Surcharge @ 12% of the Income tax where taxable Income is greater than Rs.1 crore.

*Education Cess : 2% of Total Income tax and surcharge.

*Secondary and Higher Education cess: 1% of Income tax and surcharge.

(vi) Firm:

Tax is charged at the rate of 30%.

*Surcharge: Surcharge @ 12% of the Income tax where taxable Income is greater than Rs.1 crore.

*Education Cess : 2% of Total Income tax and surcharge.

*Secondary and Higher Education cess: 1% of Income tax and surcharge.

(vii) Local Authority :

Tax is charged at the rate of 30%.

*Surcharge: As per Finance Budget 2016 Surcharge has been increased to 15% of the Income tax where taxable Income is greater than Rs.1 crore. ( It was 12% for F.Y.2015-16).

*Education Cess : 2% of Total Income tax and surcharge.

*Secondary and Higher Education cess: 1% of Income tax and surcharge.

(viii) Domestic Company : 

Tax is charged at the rate of 30%.

*Surcharge @ 7% of Income tax if Net income>1 crore

*Surcharge @ 12% of Income tax if Net income>10 crores

*Education Cess : 2% of Total Income tax and surcharge.

*Secondary and Higher Education cess: 1% of Income tax and surcharge.

(ix) Foreign Company :

Tax is charged at the rate of 40%.

*Surcharge @2% of Income tax if Net income>1 crore

*Surcharge @ 5% of Income tax if Net Income >10 crores

*Education Cess : 2% of Total Income tax and surcharge.

*Secondary and Higher Education cess: 1% of Income tax and surcharge.

For calculating your Income tax you can refer our Income Tax Calculator and for filing Income tax returns on time check Due dates for Income tax Return filing !

To have proper tax planning,also have a look at our popular posts : 7 Tax saving tips for salaried class and Tax Deduction under Section 80 C – Eligible Investments !

For any queries thereon,you can ask in the comment section below.

Feel free to share your valuable feedback and opinions on the same !