Quick Answer
For FY 2015-16 (AY 2016-17), an individual below 60 paid nil up to ₹2,50,000, then 10% (₹2.5L–₹5L), 20% (₹5L–₹10L) and 30% above ₹10L. A Section 87A rebate of ₹2,000 applied for income up to ₹5L, plus 3% education cess. The basic slabs were unchanged from FY 2014-15; the big Budget 2015 news was the new 80CCD(1B) NPS deduction and the abolition of Wealth Tax.
Basic exemption ₹2.5L
Top rate 30%
87A rebate ₹2,000
Cess 3%
This is a historical page (AY 2016-17)
These rates apply only to FY 2015-16 and are shown for reference. From FY 2025-26 (AY 2026-27) the new regime is the default, with nil tax up to ₹12,00,000 taxable income via the enhanced Section 87A rebate. For current rates see the latest income tax slabs.
Individual < 60
Income Tax Slabs — FY 2015-16
Slab rates for a resident/non-resident individual below 60 years of age for Assessment Year 2016-17.
| Income Slab | Tax Rate | Effective Tax |
|---|---|---|
| Up to ₹2,50,000 | Nil | ₹0 |
| ₹2,50,001 – ₹5,00,000 | 10% | Up to ₹25,000 (less ₹2,000 87A rebate) |
| ₹5,00,001 – ₹10,00,000 | 20% | ₹25,000 + 20% of amount above ₹5L |
| Above ₹10,00,000 | 30% | ₹1,25,000 + 30% of amount above ₹10L |
Add 3% education cess (2% education + 1% secondary & higher education) on income tax after 87A rebate. There was no standard deduction in FY 2015-16.
Taxable income ₹6,00,000
0–2.5L₹0
2.5L–5L @10%₹25,000
5L–6L @20%₹20,000
Cess @3%₹1,350
Total tax₹46,350
Taxable income ₹12,00,000
0–2.5L₹0
2.5L–5L @10%₹25,000
5L–10L @20%₹1,00,000
10L–12L @30%₹60,000
Cess @3%₹5,550
Total tax₹1,90,550
Age-based slabs
Senior & Super-Senior Citizens — FY 2015-16
Senior citizens (60–79) and super-senior citizens (80+) enjoyed a higher basic exemption limit for AY 2016-17.
| Income Slab | Individual < 60 | Senior 60–79 | Super-senior 80+ |
|---|---|---|---|
| Up to ₹2,50,000 | Nil | Nil | Nil |
| ₹2,50,001 – ₹3,00,000 | 10% | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 10% | 10% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
Basic exemption: ₹2.5L (below 60), ₹3L (senior 60–79), ₹5L (super-senior 80+). Cess 3% on all.
Section 87A
Rebate & Surcharge — FY 2015-16
- Section 87A rebate: up to ₹2,000 (or actual tax, whichever lower) for resident individuals with total income up to ₹5,00,000, applied before cess.
- Surcharge: 12% of income tax where total income exceeds ₹1 crore (raised from 10% in FY 2014-15), with marginal relief.
- Education cess: 3% on (income tax + surcharge).
- No standard deduction — it was introduced only from FY 2018-19.
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Budget 2015 — Key Changes for Individuals
The basic slab rates were untouched, but Budget 2015 (Finance Act 2015) brought several structural changes effective FY 2015-16.
| Change | Detail |
|---|---|
| New Section 80CCD(1B) | Additional ₹50,000 deduction for NPS Tier-I, over and above the ₹1.5L 80C limit |
| Section 80D raised | Health insurance limit ₹15,000 → ₹25,000 (₹30,000 for senior citizens) |
| Abolished Wealth Tax | Wealth Tax Act 1957 ceased from AY 2016-17; no wealth-tax return required |
| Surcharge raised | 10% → 12% on income above ₹1 crore, to offset lost wealth-tax revenue |
| GAAR deferred | General Anti-Avoidance Rules implementation deferred to FY 2017-18 |
| Section 80G expansion | Donations to the National Fund for Control of Drug Abuse eligible for 100% deduction |
TaxClue Insight — 80CCD(1B) still matters
The extra ₹50,000 NPS deduction born in Budget 2015 is still available under the OLD regime today, taking total NPS-linked savings to ₹2,00,000 (₹1.5L under 80C + ₹50k under 80CCD(1B)). It is NOT available under the new default regime.
Old regime
Exemptions & Deductions Available in FY 2015-16
| Item | Limit / Amount |
|---|---|
| Section 80C (EPF, PPF, LIC, ELSS, tuition, home-loan principal) | Up to ₹1,50,000 |
| Section 80CCD(1B) — NPS additional (new) | Up to ₹50,000 |
| Section 80D — health insurance premium | ₹25,000 (₹30,000 for seniors) |
| Section 80TTA — savings bank interest | Up to ₹10,000 |
| Transport allowance exemption | ₹9,600/year (₹800/month) |
| Medical reimbursement | ₹15,000/year (bills required) |
| HRA exemption | Least of actual HRA, 50%/40% of basic, rent − 10% basic |
| Standard deduction | Not applicable (introduced FY 2018-19) |
Then vs now
FY 2014-15 → FY 2016-17 & Today
| Feature | FY 2014-15 | FY 2015-16 | FY 2016-17 | FY 2025-26 (new) |
|---|---|---|---|---|
| Basic exemption | ₹2,50,000 | ₹2,50,000 | ₹2,50,000 | ₹4,00,000 |
| Section 87A rebate | ₹2,000 (≤₹5L) | ₹2,000 (≤₹5L) | ₹5,000 (≤₹5L) | Nil tax up to ₹12L |
| Surcharge >₹1Cr | 10% | 12% | 15% | Capped 25% (new) |
| Cess | 3% | 3% | 3% | 4% |
| 80CCD(1B) NPS | — | New ₹50k | ₹50k | Old regime only |
| Wealth Tax | Applicable | Abolished | Abolished | Abolished |
FY 2025-26 (AY 2026-27) uses the new regime as default under the Income-tax Act, 2025. Old regime remains optional. See current slabs for full detail.
Compare the old and new regime for the current year in seconds.
Old vs New Regime Calculator →Government sourcesSlabs & rebate: incometax.gov.in · Finance Act 2015 (Budget 2015) — slab, surcharge & 80CCD(1B) provisions · Wealth Tax abolition: Finance Act 2015, effective AY 2016-17 · Current rates: TaxClue income tax slabs
People also ask
Income Tax FY 2015-16 — FAQs
Slabs & Rates
What were the income tax slab rates for FY 2015-16 (AY 2016-17)?
For an individual below 60 in FY 2015-16: nil up to ₹2,50,000; 10% from ₹2,50,001 to ₹5,00,000; 20% from ₹5,00,001 to ₹10,00,000; and 30% above ₹10,00,000. A 3% education cess applied on the income tax after the Section 87A rebate.
Were the FY 2015-16 slabs different from FY 2014-15?
No. The basic slab rates and exemption thresholds were identical in FY 2015-16 and FY 2014-15 — nil up to ₹2.5L, 10%, 20% and 30%. The differences were the surcharge rising from 10% to 12% on income above ₹1 crore, abolition of Wealth Tax, and the new Section 80CCD(1B) NPS deduction.
What was the basic exemption limit in FY 2015-16?
₹2,50,000 for an individual below 60, ₹3,00,000 for a senior citizen (60–79), and ₹5,00,000 for a super-senior citizen (80 or above), for Assessment Year 2016-17.
What was the top income tax rate in FY 2015-16?
The highest slab rate was 30%, applying to income above ₹10,00,000. On top of that, a 12% surcharge applied where total income exceeded ₹1 crore, plus 3% education cess on the total.
Rebate & Cess
What was the Section 87A rebate in FY 2015-16?
The Section 87A rebate was ₹2,000 for resident individuals with total taxable income up to ₹5,00,000. It was applied against tax payable before cess and could reduce liability to zero if tax was ₹2,000 or less. It was raised to ₹5,000 in FY 2016-17.
How much education cess applied in FY 2015-16?
3% — comprising 2% Education Cess and 1% Secondary & Higher Education Cess — levied on the income tax payable (plus surcharge, if any) after the 87A rebate. The cess was raised to 4% (Health & Education Cess) only from FY 2018-19.
What was the surcharge for FY 2015-16?
A surcharge of 12% of income tax applied to individuals with total income above ₹1 crore, up from 10% in FY 2014-15. The increase partly offset the revenue lost from abolishing Wealth Tax. Marginal relief was available to limit the surcharge impact near ₹1 crore.
Budget 2015
When was Section 80CCD(1B) NPS deduction of ₹50,000 introduced?
Section 80CCD(1B) was introduced by Budget 2015 (Finance Act 2015), effective from FY 2015-16 (AY 2016-17). It gives an additional deduction of up to ₹50,000 for NPS Tier-I contributions, over and above the ₹1,50,000 under Section 80C — a total of up to ₹2,00,000. It remains available under the old regime today.
Why was Wealth Tax abolished in Budget 2015?
Wealth Tax (Wealth Tax Act 1957) was abolished from AY 2016-17 via the Finance Act 2015 because it was high-cost and low-yield — collecting under ₹1,000 crore a year while requiring heavy compliance. To compensate, the surcharge on income above ₹1 crore was raised from 10% to 12%.
What else changed in Budget 2015 for individuals?
Key changes: Section 80CCD(1B) added (₹50,000 NPS); Section 80D limit raised from ₹15,000 to ₹25,000 (₹30,000 for seniors); Wealth Tax abolished; surcharge raised to 12% above ₹1 crore; GAAR deferred to FY 2017-18; and donations to the National Fund for Control of Drug Abuse made 100% deductible under 80G.
Deductions
What was the Section 80C limit in FY 2015-16?
The Section 80C deduction limit was ₹1,50,000, covering EPF, PPF, LIC premiums, ELSS, five-year tax-saver FDs, tuition fees, home-loan principal and similar investments. With the new 80CCD(1B), total NPS-linked savings could reach ₹2,00,000.
Was there a standard deduction in FY 2015-16?
No. A standard deduction for salaried taxpayers did not exist in FY 2015-16 — it was introduced (₹40,000) only from FY 2018-19. In FY 2015-16 salaried people instead relied on transport allowance (₹9,600/year) and medical reimbursement (₹15,000/year) exemptions.
Filing
Can I still file or revise my FY 2015-16 income tax return?
The normal and belated/revised return windows for AY 2016-17 have long closed, so a routine return can no longer be filed. In limited situations an updated return or a proceeding in response to a notice may apply. For any old-year issue, consult a TaxClue expert before acting.
What are the current income tax slabs, and how do they differ from FY 2015-16?
For FY 2025-26 (AY 2026-27) the new regime is the default: nil up to ₹4L, then 5%/10%/15%/20%/25%/30% bands, with a Section 87A rebate making tax nil up to ₹12,00,000 taxable income and a ₹75,000 standard deduction. This is far more generous than FY 2015-16, where tax started at ₹2.5L and the 87A rebate covered only ₹5L income. See the current income tax slabs page.
Which regime applied in FY 2015-16 — old or new?
Only one regime existed in FY 2015-16 — the regime now called the "old regime", with slab-based rates and full Chapter VI-A deductions (80C, 80D, 80CCD etc.). The optional new regime under Section 115BAC was introduced only from FY 2020-21 and became the default from FY 2023-24.
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