In the tax slab for FY 2016-17, i.e., Financial Year April 1 2016 to March 31 2016, there have not been any major changes. In this post, we will discuss the relative changes in the tax slab for 2016-17 for different entities.
1 . Individual, HUF, AOP, BOI, AJP: There are no changes in the basic exemption limit. It will applicable as follows.
Individual resident in India below the age of 60 years AND for HUF, AOP, BOI and AJP:
| Particulars | Slab rates |
| Up to Rs.2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 10% |
| 5,00,001 – 10,00,000 | 20% |
| 10,00,001 and above | 30% |
Individual resident in India between the age of 60 and 80 years:
| Particulars | Slab rates |
| Up to Rs.3,00,000 | Nil |
| 3,00,001 to 5,00,000 | 10% |
| 5,00,001 to 10,00,000 | 20% |
| 10,00,000 and above | 30% |
Individual resident in India over the age of 80 years:
| Particulars | Slab rates |
| Up to Rs.5,00,000 | Nil |
| 5,00,001 – 10,00,000 | 20% |
| 10,00,001 and above | 30% |
The surcharge will be applicable if the income exceeds Rs. 1 Crore at a rate of 15%. Previously it was applicable at the rate of 12%. Educational Cess will be continued at 3%.
2. Co-operative societies, Firms Local authorities and LLPs: The tax slab for FY 2016-17 for Co-operative societies, Firms Local authorities and LLPs will continue at the same rate as the previous financial year.
Co-operative societies:
| Particulars | Slab rates |
| Up to Rs.10,000 | 10% |
| 10,000 – 20,000 | 20% |
| 20,000 and above | 30% |
Firms Local authorities and LLPs: Income tax rate will continue to be applied at 30%.
The surcharge will be applicable if the income exceeds Rs. 1 Crore at a rate of 12%. Educational Cess will be continued at 3%.
3. Companies: In the financial bill of 2015, it was proposed that corporate tax rate will be reduced to 25% over a period of four financial years. Thus for domestic companies tax slab for FY 2016-17 will be:
| Particulars | Slab rates |
| If turnover/gross receipts do not exceed 5 crores. | 29% |
| If turnover/gross receipts exceeds 5 crores. | 30% |
Surcharge will be applicable at the same rate:
- If total income exceeds 1 crore but less than 10 crores- 7% surcharge
- If total income exceeds 10 crores – 12% surcharge
Other than domestic companies i.e, foreign companies: The tax slab for FY 2016-17 for foreign companies will continue at the rate of 40%, same as the previous financial year.
Surcharge will be applicable at the same rate as before:
- If total income exceeds 1 crore but less than 10 crores- 2% surcharge
- If total income exceeds 10 crores – 5% surcharge
This is the overview of how the tax slab for 2016-17 will be applicable for different entities.
Related topics: Proposed amendments in TDS compliance.
