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Income Tax Slabs

Income Tax Slabs for Financial Year (FY) 2015-16

FY 2015-16 tax rate applies to income earned between 1st April 2015 and 31st March 2016. Income Tax rates for individuals are same for FY 2015-16 and FY 2014-15.

 

·Income Tax Slabs for Individual Resident Senior Citizens [For both Males or Females]

Income Tax Rates for those who are 60 years or older but less than 80 years old at any time during the year in which Income is earned.

Tax Slab

FY 2015-16 
FY 2014-15 
Tax Rate

Up to Rs.3,00,000

No Tax

Rs.3,00,000 - Rs.5,00,000

10%

Rs.5,00,000 - Rs.10,00,000

20%

Rs.10,00,000 and beyond

30%

 

·Income Tax Slabs for Individual Resident Super Senior Citizens[For both Males or Females]

Income tax rates for those who are 80 years or olderat any time during the year in which Income is earned.

Tax Slab

FY 2015-16 
FY 2014-15 
Tax Rate

Up to Rs.5,00,000

No Tax

Rs.5,00,000 - Rs.10,00,000

20%

Rs.10,00,000 and beyond

30%

·Income Tax Rates for all Other Individual(s), HUF, Association of Persons and Body of Individuals

Tax Slab

FY 2015-16 & FY 2014-15 
Tax Rate

Up to Rs.2,50,000

No Tax

Rs.2,50,000 - Rs.5,00,000

10%

Rs.5,00,000 - Rs.10,00,000

20%

Rs.10,00,000 and beyond

30%

Notes:

Surcharge: 10% of the Income Tax, where total income exceeds Rs.1 crore. Marginal reliefs can be claimed in surcharge to the extent of amount where sum of Income tax and surcharge exceeds the amount of Total Income

Education cess: 3% on sum of total income tax and surcharge.

A Further Rebate of Rs.2,000 can be claimed in case of Resident Individuals if the Total Income Doesn’t exceed Rs.5,00,000/-.

Interest shall be paid on tax for the following

  • Default in filing of Tax Returns by due-date- Section 234A
  • Default in payment of Advance Tax - Section 234B
  • Deferment of payment Advance Tax - Section 234C

Interest on tax payable for late filing or non-filing of returns – Section 234A
Income Tax Returns for a financial year need to be filed within the time limit prescribed all categories of Tax Payers. Failure to file a return within this prescribed time or non-filing of returns will attract interest u/s 234A on tax at 1% simple interest per month or part of the month of tax amount after reducing taxes specified in the law.

 

Interest on tax payable for Default in payment of Advance tax – Section 234B

  • Liability for Payment of Advance tax

if assessed income tax liability is Rs.10,000 or more in a financial year, Liability to pay Advance tax arises. Such Advance tax has to be paid in installments during the year in which income is earned.In case of Default interest is payable at 1% simple interest per month or part of the month. Assessed tax means the specified tax liability as reduced by advance tax already paid, TDS, Reliefs / Rebates and Tax Credits, if any.

 

Interest on Default in Advance Tax payment is not applicable to the following cases

  • When an eligible taxpayer opts for the scheme of computing business income under section 44AD on presumptive basis @ 8% of turnover.
  • A senior citizen (resident individual who is 60 yrs or more) who does not have any income from business & profession, is not liable to pay advance tax.
  • If at least 90% of assessed tax is not paid before 31st March of the financial year.

 

Interest on tax payable for Deferment of Advance tax- Section 234C

Advance tax is paid on the following dates of a financial year:

On or Before

In case of a Company Taxpayer

In case of all other Taxpayers

15th June

Up to 15% of advance tax payable

Not Applicable

15th September

Up to 45% of advance tax payable

Up to 30% of advance tax payable

15th December

Up to 75% of advance tax payable

Up to 60% of advance tax payable

15th March

Up to 100% of advance tax payable

Up to 100% of advance tax payable

 

Interest payable for Non-Company Tax Payer Assessee

Advance tax payable and its due-dates

Rate of Interest

Period of Interest

Amount on which Interest is calculated

If Advance Tax paid on or before September 15 is less than 30% of the Tax Payable*

Simple interest @1% per month

3 months

30% of Amount* less tax already deposited before September 15

If Advance Tax paid on or before December 15 is less than 60% of the Tax Payable*

Simple interest @1% per month

3 months

60% of Amount* less tax already deposited before December 15

If Advance Tax paid on or before March 15 is less than 100% of the Tax Payable*

Simple interest @1% per month

-

60% of Amount* less tax already deposited before March 15

 

 

 

 

 

 

Interest payable for Company Tax Payer Assessee

Advance tax payable and its due-dates

Rate of Interest

Period of Interest

Amount on which Interest is calculated

If Advance Tax paid on or before June 15 is less than 12% of the Tax Payable*

Simple interest @1% per month

3 months

15% of Amount* less tax already deposited before June 15

If Advance Tax paid on or before September 15 is less than 36% of the Tax Payable*

Simple interest @1% per month

3 months

45% of Amount* less tax already deposited before September 15

If Advance Tax paid on or before December 15 is less than 75% of the Tax Payable*

Simple interest @1% per month

3 months

75% of Amount* less tax already deposited before December 15

If Advance Tax paid on or before March 15 is less than 100% of the Tax Payable*

Simple interest @1% per month

-

100% of Amount* less tax already deposited before March 15

*tax Payable = Tax on total income as Filed in Returns minus the sum of the following amounts

  1. TDS / TCS
  2. relief u/s 90
  3. relief u/s 90A
  4. relief u/s 91 and
  5. less tax credit u/s 115JD / 115JAA as applicable

No interest is payable on account of underestimation or failure to estimate amount of capital gains or speculative income (lottery income, gambling income etc) If taxpayer has paid in full - tax payable on the income mentioned above, while paying remaining installments of advance tax due, or if no installment is due, tax payer pays them before the end of the financial year

 

 

 

 

 

 

 

 

 

 

 

 

Deductions from taxable Income under Chapter VIA of the Income tax Act

1.Section 80C, 80CCC and 80CCD

The deduction under section 80C is allowed for Individual and HUF Assesses for various investments, expenses and payments.Total Quantum of Deduction(s) under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2014-15 (assessment year 2015-16). The limit for financial year 2015-16 is also Rs 1,50,000.Few Examples of outflows for which Deduction benefits can be availed is as follows:

  • Depost in PPF scheme
  • Employee's share of PF Contribution 
  • Interest Received and Investment in National Savings Certificate
  • Life Insurance Premium Payment
  • Children's Tuition Fee Payment - Tuition fees paid to any school, college, university or other educational institution situated within India for the purpose of full time education of any two children (including payments for play school, pre nursery and nursery).
  • Principal Repayments on Loan for purchase of House Property 
  • Deposit in Sukanya Samridhi account 
  • Purchase of ULIPS or Unit Linked Insurance Plan
  • Investment in ELSS - ELSS or Equity Linked Savings Scheme is an Equity Fund. ELSS funds are eligible to be claimed as a deduction under section 80C. These funds have a 3 year lock in period.
  • Sum paid for securing Deferred Annuity 
  • Sum deposited in Five Year Deposit Scheme in Post Office.
  • Amount deposited under Senior Citizens Saving Scheme.
  • Subscription to any notified securities/notified deposits scheme. e.g. NSS
  • Contribution to notified Pension Fund set up by Mutual Fund or UTI.
  • Subscription to deposit scheme of a public sector, company engaged in providing housing finance (public deposit scheme of HUDCO).
  • Contribution to notified annuity Plan of LIC (e.g. Jeevan Dhara and Jeevan Akshay) or Units of UTI / notified Mutual Funds.
  • Subscription to equity shares/ debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions.
  • Subscription to any notified bonds of NABARD (National Bank for Agriculture and Rural Development).
  • Amount paid or deposited in any annuity plan of LIC or any other insurer for receiving pension from a fund referred to in Section 10(23AAB).
  • Deduction in respect of Contribution to Pension Account

 

Notes:

  1. For FY 2014-15 (assessment year 2015-16)
    1. Total Deduction under Section 80C, 80CCC and 80CCD(1) cannot exceed Rs 1,50,000.
  2. For FY 2015-16 (assessment year 2016-17)
    1. A new section 80CCD(1B) has been introduced to provide for additional deduction for amount contributed to NPS of up to Rs 50,000.
  3. From assessment year 2012-13, employer's contribution under section 80CCD(2) towards NPS is outside the monetary ceiling mentioned above.

 

2.Deductions for taxable Interest on Savings Bank Account u/s 80TTA Is allowed up to a maximum of Rs. 10,000/-, in respect of interest on deposits in savings account with a bank, co-operative society or post office.

3.Deduction with respect to House Rent Paidu/s 80GG is available for rent paid when House Rent Allowance is not received and the tax payer or his spouse or minor child or his HUF should not own residential accommodation at the place of employment.He should also not have self occupied residential premises in any other place.Deduction available is the least of the following amounts

  • Rent paid minus 10% of total income
  • Rs. 2000/- per month
  • 25% of total income

4.Deduction with respect to Interest on Loan for Higher Studies u/s 80E for pursuing higher education of the assessee, spouse or children or for a student for whom the assessee is a legal guardian.

 

 

  1. Deduction u/s 80D is available up to Rs. 15,000/- to an assessee for insurance of self, spouse and dependent children. If individual or spouse is more than 60 years old the deduction available is Rs 20,000. An additional deduction for insurance of parents (father or mother or both) is available to the extent of Rs. 15,000/- if less than 60 years old and Rs 20,000 if parents are more than 60 years old. Therefore, the maximum deduction available under this section is to the extent of Rs. 40,000/-. (From AY 2013-14, within the existing limit a deduction of up to Rs. 5,000 for preventive health check-up is available).For financial year 2015-16 – Deduction is raised from Rs 15,000 to Rs 25,000. The deduction for senior citizens is raised from Rs 20,000 to Rs 30,000. For uninsured super senior citizens (more than 80 years old) medical expenditure incurred up to Rs 30,000 shall be allowed as a deduction under section 80D. However, total deduction for health insurance premium and medical expenses for parents shall be limited to Rs 30,000.

 

  1. Deduction u/s 80U of Rs. 50,000/- to an individual who suffers from a physical disability (including blindness) or mental retardation. Further, if the individual is a person with severe disability, deduction of Rs. 100,000/- shall be available u/s 80U. Certificate should be obtained from a Govt. Doctor. The relevant rule is Rule 11D.For financial year 2015-16 – The deduction limit of Rs 50,000 has been raised to Rs 75,000 and Rs 1,00,000 has been raised to Rs 1,25,000.

 

  1. Deduction u/s 80G for donations specified in Sec. 80G are eligible for deduction up to either 100% or 50% with or without restriction as provided in Sec. 80G. Benefit of 80G deduction cannot be claimed in case donation is done in form of cash for amount over Rs 10,000.

 

  1. Deduction is allowed u/s 80GGB to an Indian company for amount contributed by it to any political party registered under section 29A of the Representation of the People Actor an electoral trust. Deduction is allowed for contribution done by any way other than cash.Contribution is as defined as per section 293A of the Companies Act, 1956.

 

  1. Deduction u/s 80 GGC is allowed to an assessee for any amount contributed to any political partyregistered under section 29A of the Representation of the People Act.or an electoral trust. Deduction is allowed for contribution done by any way other than cash.