The Government of India prescribes applicable tax rates and slab rates every year in its annual finance budget.
Income tax rates applicable for Financial Year 2016-17 are as follows:
All Individuals (resident or non- resident, Men or Women) below the age of 60 years:
Now let us understand this with an example. Assuming you are below 60 years of age and your total income
is Rs 10,50,000 from salary. Your tax will be calculated as under:
Special tax rates: In case of any other source of income (other than salary), tax rate may be different based on the nature of income. Some examples are as under:
- 15% tax rate on short term capital gains on sale of listed shares and securities
- 0% tax rate on long term capital gains on sale of listed shares and securities
- 20% tax rate on long term capital gains for sale of capital asses
- 0% tax rate on dividend income from companies
Surcharge: Where the total income of an individual exceeds Rs. 1 crore, additional surcharge at the rate of 12% would be levied on the amount of income tax.