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Tax Structure and rates of Income-Tax as per Finance Act, 2016

CBDT definition for Tax Structure and rates of Income-Tax as per Finance Act, 2016

Ministry of Finance has issued a Circular regarding Tax Structure and rates of Income-Tax as per Finance Act, 2016

RATES OF INCOME-TAX AS PER FINANCE ACT,  2016:

As per  the Finance Act, 2016, income-tax is required to be deducted under Section 192 of the Act from income chargeable under the head “Salaries” for the financial  year 2016-17 (i.e.Assessment Year 2017-18) at the following rates:

Rates of tax

A.          Normal Rates of tax:

Sl No

Total Income

Rate of tax

1

Where the total income does not exceed Rs.2,50,000/-.

Nil

2

Where the total income exceeds Rs.2,50,000/-
but does not exceed Rs.5,00,000/-.
10 per cent of the amount by which the total income exceeds Rs.2,50,000/-

3

Where the total income exceeds  Rs. 5,00,000/- but
does not exceed  Rs. 10,00,000/-.
Rs. 25,000/- plus 20 per cent of the amount by which the total
income exceeds Rs. 5,00,000/-.

4

Where the total income exceeds    Rs. 10,00,000/-. Rs. 1,25,000/- plus 30 per cent of the amount by which the total income
exceeds Rs.10,00,000/-

B. Rates of tax for every individual, resident in India, who is of the age of sixty years or more  but less than eighty years at any time during the financial year:

Sl

No

Total Income

Rate of tax

1

Where the total income does not exceed Rs. 3,00,000/- Nil

2

Where the total income exceeds  Rs.3,00,000 but does not exceed  Rs.5,00,000/- 10 per cent of the amount by which the total income exceeds Rs.
3,00,000/-

3

Where the total income exceeds Rs.
5,00,000/- but does not exceed  Rs.
10,00,000/-
Rs. 20,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.

4

Where the total income exceeds Rs.10,00,000/- Rs. 1,20,000/- plus 30 per cent of the amount  by which the total income
exceeds Rs. 10,00,000/-

C. In case of every individual being a resident in India, who is of the age of eighty years or more at any time during the financial year:

Sl

No

Total Income

Rate of tax

1

Where the total income does not exceed Rs. 5,00,000/- Nil

2

Where the total income exceeds Rs.
5,00,000 but does not exceed Rs.10,00,000/-
20 per cent of the amount by which the total income exceeds Rs.
5,00,000/-

4

Where the total income exceeds Rs.10,00,000/- Rs. 1,00,000/- plus 30 per cent of the amount  by which the total income
exceeds Rs. 10,00,000/-

Surcharge on Income tax:

The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section
111A or section 112 of the Income-tax Act, shall, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, having a total income exceeding one crore rupees, be increased by a surcharge for the purpose of the Union calculated at the rate of fifteen per cent of such income-tax:

Provided that in the case of persons mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

Education Cess on Income tax:

The amount of income-tax including the surcharge if any,  shall be increased by Education Cess on Income Tax at the rate of two percent of the income-tax.

Secondary and Higher Education Cess on Income-tax:

An additional education cess is chargeable at the rate of one percent of income-tax including the surcharge if any, but not including the Education Cess as detailed above.

Also read the other provisions of Income Tax 2016-17 for Salaried Class – CBDT Circular dated 02.01.2017

Click here to Calculate Income Tax 2016-17 (Assessment Year 2017-18)

Click here to Calculate the Income Tax Relief under Section 89 for 7th Pay Commission Arrears

Download CBDT Circular F.No. 275/192/2016-IT(B) dated 02.01.2017

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