Click to view Part I of Income Tax on Salaries – Circular No. 17/2014
2. RATES OF INCOME-TAX AS PER FINANCE (No. 2) ACT, 2014:
2.1 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/- |
| 3 | 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/- |
2.2 Surcharge on Income tax:
2.3.1 Education Cess on Income tax:
2.3.2 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 on income-tax as in 2.3.1.
6. REBATE OF RS 2000 FOR INDIVIDUALS HAVING TOTAL INCOME UPTO RS 5 LAKH [SECTION 87A]
ANNEXURE 1 – SOME ILLUSTRATIONS – For Assessment Year 2015-16
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