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.
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.
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
Taxable income ₹12,00,000
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.
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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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 |
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.
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) |
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 →- Slabs & 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
Disclaimer: This guide is general information based on the law and notifications in force when it was last updated. It is not professional advice for your case — rates, thresholds and due dates change, so check the current position or speak to our CA team before you act on it.