CENTRAL GOVERNMENT EMPLOYEES - INCOME TAX
INCOME TAX RATES
ASSESSMENT YEAR 2016-2017
RELEVANT TO FINANCIAL YEAR 2015-2016
The normal tax rates applicable to a resident individual will depend on the age of the individual. However, in case of a non-resident individual the tax rates will be same irrespective of his age.
For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:
• Resident individual below the age of 60 years. i.e. born on or after 01-04-1956
• Resident individual of the age of 60 years or above at any time during the year but below the age of 80 years. (i.e. born during 01-04-1936 to 31-03-1956)
• Resident individual of the age of 80 years or above at any time during the year. i.e. born before 01.04.1936
• Non-resident individual irrespective of the age.
I. Normal tax rates applicable to a resident individual below the age of 60 years i.e. born on or after 01-04-1956
| INCOME SLABS |
INCOME TAX RATES |
| Upto Rs.2,50,000
|
NIL |
|
Rs. 2,50,000 to 5,00,000 |
10% of the amount exceeding Rs. 2,50,000
Less: Tax Credit - 10% of taxable income upto a maximum of Rs.
2000/-. |
| Rs. 5,00,000 to 10,00,000 |
Rs. 25,000 + 20% of the amount exceeding Rs. 5,00,000 |
| Rs. 10,00,000 & above |
Rs. 1,25,000 + 30% of the amount exceeding Rs. 10,00,000 |
II. Normal tax rates applicable to a resident individual of the age of 60 years or above at any time during the year but below the age of 80 years i.e. born during 1.4.1936 to 31.3.1956
| INCOME SLABS |
INCOME TAX RATES |
| Upto Rs. 3,00,000 |
NIL |
|
Rs. 3,00,000 to 5,00,000 |
10% of the amount exceeding Rs.3,00,000 |
| Rs. 5,00,000 to 10,00,000 |
Rs. 20,000 + 20% of the amount exceeding Rs. 5,00,000 |
| Rs. 10,00,000 & above |
Rs. 1,20,000 + 30% of the amount exceeding Rs. 10,00,000 |
III. Normal tax rates applicable to a resident individual of the age of 80 years or above at any time during the year i.e. born before 1.4.1936
| INCOME SLABS |
INCOME TAX RATES |
| Upto Rs. 5,00,000 |
NIL |
| Rs. 5,00,000 to 10,00,000 |
20% of the amount exceeding Rs. 5,00,000 |
| Rs. 10,00,000 & above |
Rs. 1,00,000 + 30% of the amount exceeding Rs. 10,00,000 |
SURCHARGE
Surcharge is levied @ 12% on the amount of income-tax where net income exceeds [As amended by Finance Act, 2015] Rs. 1 crore. In a case where surcharge is levied, EC of 2% and SHEC of 1% will be levied on the amount of income-tax plus surcharge.
However, marginal relief is available from surcharge in such a manner that in the case of a person having a net income of exceeding Rs. 1 crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
EDUCATION CESS ON INCOME TAX
The amount of Income-tax shall be further increased by Education Cess of 2% and SHEC of 1% on Income-tax.
PERMANENT ACCOUNT NUMBER (PAN)
Every assessee is required to obtain 10 alpha numeric Permanent Account Number (PAN) and quote the same in his returns, challans & correspondence. PAN can be obtained by applying in new Form No.49A at the designated Service Centres of UTITSL OR NSDL. PAN is essential for processing the Return of Income and for giving credit for taxes paid. If a person who is required to quote his Permanent Account Number fails to do so or intimates false number, the Assessing Officer may direct that such person shall pay, by way of penalty, a sum of Rs.10,000.
INCOME TAX PAYMENTS
Advance tax payments and Self-assessment tax payments have to be made in Challan No.280.
Cost Inflation Index – For Capital Gain
The cost inflation indices for the financial years so far have been notified as under:
| Financial Year |
Cost Inflation Index |
Financial Year |
Cost Inflation Index |
| 1981 – 82 |
100 |
1997 – 98 |
331 |
| 1982 – 83 |
109 |
1998 – 99 |
351 |
| 1983 – 84 |
116 |
1999 – 00 |
389 |
| 1984 – 85 |
125 |
2000 – 01 |
406 |
| 1985 – 86 |
133 |
2001 – 02 |
426 |
| 1986 – 87 |
140 |
2002 – 03 |
447 |
| 1987 – 88 |
150 |
2003 – 04 |
463 |
| 1988 – 89 |
161 |
2004 – 05 |
480 |
| 1989 – 90 |
172 |
2005 – 06 |
497 |
| 1990 – 91 |
182 |
2006 – 07 |
519 |
| 1991 – 92 |
199 |
2007 – 08 |
551 |
| 1992 – 93 |
223 |
2008 – 09 |
582 |
| 1993 – 94 |
244 |
2009 – 10 |
632 |
| 1994 – 95 |
259 |
2010 – 11 |
711 |
| 1995 – 96 |
281 |
2011 – 12 |
785 |
| 1996 – 97 |
305 |
2012 - 13 |
852 |
| 2013 - 2014 | 939 | 2014 – 2015 | 1024 |
| 2015 - 2016 | 1081 | | |