March 1, 2016

Income Tax Slab Rates for FY 2016-17 (AY 2017-18)

Yesterday Finance Minister presented the budget. Let us now see the Income Tax Slab Rates for FY 2016-17. There is no confusion now. Because no such big changes in tax slabs.

As I wrote yesterday on my analysis on Budget 2016, it is clear that there is no change in individual’s Income Tax Slab Rates for FY 2016-17.

You can read my complete Budget analysis at “Budget 2016 : 25 changes and how they will affect you?“.

It is as below.

The tax slabs are categorized as

#Individual below 60 years of age.

# Individual above 60 years of age but below 80 years of age.

#Individual above 80 years of age.

Income Tax Slab Rates for FY 2016-17

Below is the chart about Capital Gain Tax for FY 2016-17 (AY 2017-18)

Capital Gains Tax Rates 2016-17

Tax effect on Dividend received by holders–

Equity oriented-NIL and Debt oriented-Nil. However from Budget 2016, 10% Tax levied if your dividend income is more than Rs.10 lakh per year.

Security Transaction Tax (STT) Rates for FY 2016-17 (AY 2017-18)

Here, a slight change from Budget 2016. When you sell any option contract in Future and Option Market of stock exchange, then seller have to pay the STT tax. This was earlier at 0.017%. But it is now increased to 0.05%.

STT Rates for 2016-17

I hope this much information is enough to understand the Income Tax Slab Rates for FY 2016-17.

29 Comments

  1. I have download this image as you given in this article,
    Thanks for help

    Reply
  2. Thanks Sir,
    Income Tax Slab Batane Ke liye

    Reply
  3. Hi Basu,

    I am a software professional and falling in 30% of tax slab. I want to start freelancing work. I just want to know the income I got from freelancing will be extra income other than my CTC, so will also be consider for 30% tax or is there any way to save the tax on this income.

    Thanks in Advance.

    Vinod

    Reply
    • Vinod-It is additional income from your salary income. Hence, definitely as per NOW, you will be again under 30% tax bracket.

      Reply
  4. Hi Basu,

    Some X person Income is 650000 per annum.

    Kindly tell me how many money should invest in LIC, ELSS,PPF……etc to pay Zero TAX.

    Reply
      • Thank you Basavaraj,

        This is the gross income paid by an employer before any deductions are taken.

        1) Kindly tell me how much money should i invest in LIC, ELSS,PPF,sukanya samrudhhi……etc to pay Zero TAX.

        2) How Can i calculate like how much money should i invest for escape from TAX.

        Please clarify

        Reply
        • Karthik-Without knowing your salary components, it hard to guide you. Also, don’t concentrate too much on tax saving alone. But try to invest in such a way that your investment meet both financial goals as well as your tax saving options also.

          Reply
  5. Hi Basvaraj,

    I have a question related to double taxation.

    In last financial year, I worked outside India for more than 182 days. I got my salary directly in my Indian Account as I am on rolls in India only. Apart from this I was getting living allowance in Germany and I have a tax certificate for that. So I paid TDS in India and got Tax Certificate from German tax department (Just a Tax filing -No Taxes paid). Do I need to pay taxes in this case in India or can I apply for refund u/s 91 & 92 of Income tax act 1961?

    Reply
      • Thanks Baravaraj!!

        Reply
      • Do I need to pay taxes (in India) on living allowance I get in Germany? As per German Taxation laws the amount I get is exempted from Tax.

        Moreover, If I save some amount of it… Will it be treated like “white” money?

        Reply
        • Gaurav-Your employment is from India. Hence, I think you have to pay the tax. However, I suggest you to consult a CA on this issue.

          Reply
  6. In revised form 15 H , in colum 16 what is to be written . What is estimated total income? And in colum 17 total number of form 15 H filed, I e. If we have submitted in other banks of F.D. To be written? and the total of that amount is to be written in subsequent box. Pl. guide me.

    Reply
  7. in new budget insurance service tax percentage tell me sir

    Reply
  8. Gladly Thanks for ur such dedication of such crystal clear clarification

    Reply
  9. Of all sites spreading awareness about financial matters, yours is the clearest.

    Reply
  10. Dear sir i have 500000 rp. I want to invest mutual equity funds for long term. I can take risk. My 1st goal is my daughter education she is 5 years old. 2nd goal is my retirement plan. My age is 30. Pls suggest me
    what i do for best returns

    Reply
    • Abdul-It is hard to guide for two of your most important goals without knowing much about you. May I know what do you mean by RISK? Whether you are ready to incur loss of all Rs.5,00,000?? This is what you mean by “Can take risk”??

      Reply
  11. What is capital gain Tax ans Security Transaction Tax? Is it applicable for Individual holding Mutual funds or Stocks? Can you please brief on this..

    Reply
    • Vamsi-Capital gain tax is something which depends on your holding period and it is explained above chart. STT is the % of tax you pay while buying or selling the securities. It is also explained of to whom these two taxed applicable.

      Reply
  12. Thanks for quick fast response

    Reply
  13. Basu sir , kindly tell whether TDS (Tax Deduction at Source) limit rs.10,000 raised bank fixed deposit ? Thank you

    Reply

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