Budget 2016: How does change in income tax rate impact you

Following is the table of the impact of changes in income tax provisions proposed by finance minister Arun Jaitley in the Union Budget for 2016-17. This includes the following:

Tax relief of Rs 5,000 from existing Rs 2,000 on income between Rs 2.5 lakh and Rs 5 lakh
Individuals with total income exceeding Rs 1 crore, surcharge rate increased to 15% from existing 12%.

Individual tax payers (Tax rate/Relief)

• Up to Rs 2,50,000 — NIL / NIL
• Rs 2,50,001 to Rs 5,00,000 — 10% / Rs 3,000 (Savings)
• Rs 5,00,001 to Rs 10,00,000 — 20% / NIL
• Rs 10,00,001 to Rs 1 crore — 30% / NIL
• Above Rs 1 crore — 30% / 3% higher surcharge

Senior citizens 60 years but less than 80 years (Tax rate/Relief)

• Up to Rs 3,00,000 — NIL / NIL
• Rs 3,00,001 to Rs 5,00,000 — 10% / Rs 3,000(Savings)
• Rs 5,00,001 to Rs 10,00,000 — 20% / NIL
• Rs 10,00,001 to Rs 1 crore — 30% / NIL
• Above Rs 1 crore — 30% / 3% higher surcharge

Senior citizens 80 years and above (Tax rate/Relief)

• Up to Rs 5,00,000 — NIL / Rs 3,000 (Savings)
• Rs 5,00,001 to Rs 10,00,000 — 20% / NIL
• Above Rs 1 crore — 30% / 3% higher surcharge
• Additional 10 per cent tax has been proposed in case dividend income received from a domestic company exceeds Rs 10 lakh.