Quick Answer · Historical
For FY 2016-17 (AY 2017-18), the individual slab was Nil up to ₹2,50,000, then 10% (₹2.5L–₹5L), 20% (₹5L–₹10L) and 30% above ₹10L. Budget 2016 raised the Section 87A rebate to ₹5,000 (income ≤ ₹5 lakh), plus a 3% education cess and 15% surcharge above ₹1 crore. These are historical rates — the new regime and Rs12 lakh rebate apply from AY 2026-27.
Up to ₹2.5L Nil
₹2.5L–₹5L 10%
₹5L–₹10L 20%
Above ₹10L 30%
This is a historical page (AY 2017-18)
These slabs applied only to Financial Year 2016-17 and are kept for reference. They do not reflect current law. For the latest FY 2025-26 / AY 2026-27 new-regime slabs — where tax is Nil up to ₹12 lakh — see the current income tax slabs page.
Individual < 60
Income Tax Slab — Individual (Below 60), FY 2016-17
The slab structure for a resident individual below 60 years of age for Assessment Year 2017-18, with the effective tax at each level.
| 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 87A rebate) |
| ₹5,00,001 – ₹10,00,000 | 20% | ₹25,000 + 20% above ₹5L |
| Above ₹10,00,000 | 30% | ₹1,25,000 + 30% above ₹10L |
Add 3% education cess (2% education + 1% SHEC) on tax payable after the 87A rebate. Historical — AY 2017-18.
Age-based exemption
Senior & Super-Senior Citizen Slabs, FY 2016-17
Senior citizens (60–79) enjoyed a higher basic exemption of ₹3,00,000 and super-senior citizens (80+) an exemption of ₹5,00,000.
| Income Slab | Senior (60–79) | Super-Senior (80+) |
|---|---|---|
| Up to ₹3,00,000 | Nil | Nil |
| ₹3,00,001 – ₹5,00,000 | 10% | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% |
Super-senior citizens (80+) had no 10% band — income up to ₹5,00,000 was fully exempt.
Comparing older years for planning? See the full slab archive.
All Income Tax Slabs →Rebate · cess · surcharge
Section 87A Rebate, Cess & Surcharge (FY 2016-17)
Budget 2016 raised the Section 87A rebate from ₹2,000 to ₹5,000 for resident individuals with total income up to ₹5,00,000 — the highest this rebate reached before the new-regime restructuring. The rebate applies to tax computed before cess.
- 87A rebate: up to ₹5,000 (or actual tax, whichever is lower) if total income ≤ ₹5,00,000.
- Education cess: 3% (2% education + 1% secondary & higher education cess) on tax after rebate.
- Surcharge: 15% of income tax where taxable income exceeds ₹1 crore, with marginal relief.
- No standard deduction: salaried employees instead had a ₹19,200/year transport allowance and ₹15,000 medical reimbursement.
Worked example
How the Tax Added Up — FY 2016-17
Income ₹5,00,000 (individual < 60)
Tax on ₹2.5L–₹5L @ 10%₹25,000
Less: 87A rebate−₹5,000
Add: 3% cess₹600
Total tax₹20,600
Income ₹12,00,000 (individual < 60)
Tax up to ₹10L₹1,25,000
Tax on ₹2L @ 30%₹60,000
Add: 3% cess₹5,550
Total tax₹1,90,550
At ₹5 lakh the ₹5,000 rebate cut the base tax from ₹25,000 to ₹20,000 before cess. Above ₹5 lakh, no rebate was available.
Finance Act 2016
Budget 2016 — Key Income Tax Changes
| Change | Detail |
|---|---|
| Section 87A rebate | Raised from ₹2,000 to ₹5,000 for income ≤ ₹5 lakh |
| New manufacturing companies | 25% rate for companies incorporated after 1 Mar 2016 (no specified deductions) |
| Small domestic companies | 29% rate where turnover ≤ ₹5 crore |
| Transport allowance | ₹1,600/month (₹19,200/year), up from ₹800/month |
| Section 115BBDA | Extra 10% tax on dividend income > ₹10 lakh for individuals |
| Surcharge | Individual surcharge above ₹1 crore raised to 15% (from 12%) |
Section 269ST (₹2 lakh cash-receipt cap) was legislated later and applied from FY 2017-18.
Then vs now
FY 2016-17 vs Current AY 2026-27
2016-17
Old regime only — AY 2017-18
- Basic exemption ₹2.5 lakh
- 87A rebate ₹5,000 (income ≤ ₹5L)
- Slabs 10% / 20% / 30%
- 3% education cess
- No standard deduction
vs
2026-27
New regime default — AY 2026-27
- Nil up to ₹4 lakh; slabs to 30% above ₹24L
- 87A makes tax Nil up to ₹12 lakh income
- Standard deduction ₹75,000 (new regime)
- 4% health & education cess
- Old regime optional with Chapter VI-A
TaxClue Insight
Use FY 2016-17 figures only for old returns, revisions or reference. For any current filing, the new regime is the default from AY 2026-27 and its ₹12 lakh rebate changes the maths entirely — start from the current slabs and calculator.
Filing for a current year? Estimate your tax under both regimes in seconds.
Open the Tax Calculator →Government sourcesSlabs & rebate: incometax.gov.in · Finance Act 2016 · Section 87A, 115BBDA · Cess & surcharge: Income-tax Act, 1961 (as in force AY 2017-18) · Current-year reference: TaxClue income tax slabs
People also ask
FY 2016-17 Income Tax — FAQs
Slabs & Rates
What are the income tax slab rates for FY 2016-17?
For FY 2016-17 (AY 2017-18), a resident individual below 60 paid Nil up to ₹2,50,000, 10% on ₹2,50,001–₹5,00,000, 20% on ₹5,00,001–₹10,00,000 and 30% above ₹10,00,000. A 3% education cess applied on the tax, and a 15% surcharge applied where income exceeded ₹1 crore.
What was the basic exemption limit in FY 2016-17?
The basic exemption was ₹2,50,000 for individuals below 60, ₹3,00,000 for senior citizens (60–79) and ₹5,00,000 for super-senior citizens (80 and above). These limits were unchanged from the previous year.
Did the slab rates change from FY 2015-16 to FY 2016-17?
The slab rates and exemption limits themselves did not change — they stayed at Nil / 10% / 20% / 30% with a ₹2.5 lakh basic exemption. The headline Budget 2016 change was raising the Section 87A rebate from ₹2,000 to ₹5,000 and increasing the surcharge above ₹1 crore from 12% to 15%.
What was the income tax rate for senior citizens in FY 2016-17?
Senior citizens aged 60–79 had a higher basic exemption of ₹3,00,000. Above that, tax was 10% up to ₹5 lakh, 20% up to ₹10 lakh and 30% beyond, plus 3% cess. Super-senior citizens (80+) were fully exempt up to ₹5,00,000.
Section 87A Rebate
What was the Section 87A rebate in FY 2016-17?
The Section 87A rebate for FY 2016-17 was up to ₹5,000 (or the actual tax, whichever is lower) for resident individuals with total income up to ₹5,00,000. Budget 2016 raised it from ₹2,000, effectively making income up to ₹5 lakh tax-free for those who qualified.
Why was the 87A rebate ₹5,000 in FY 2016-17 but ₹2,500 in FY 2017-18?
Budget 2016 raised the rebate to ₹5,000 to give greater relief to small taxpayers. Budget 2017 then reduced it to ₹2,500 and lowered the eligibility ceiling to income of ₹3.5 lakh, arguing the earlier relief had overshot its intent. It was later enhanced to ₹12,500 from FY 2019-20.
Was income up to ₹5 lakh tax-free in FY 2016-17?
Effectively yes for eligible individuals. With the ₹5,000 Section 87A rebate, the ₹25,000 tax that would arise at exactly ₹5,00,000 income was reduced — but the rebate itself was capped at ₹5,000, so income of exactly ₹5 lakh still left ₹20,000 of tax before cess unless further deductions (like 80C) brought taxable income lower.
Cess & Surcharge
What was the education cess rate in FY 2016-17?
The education cess was 3% — made up of 2% education cess and 1% secondary and higher education cess — charged on the income tax after the 87A rebate and after any surcharge. The 4% health and education cess came in only from FY 2018-19.
What was the surcharge rate on high incomes in FY 2016-17?
Individuals with net taxable income above ₹1 crore paid a 15% surcharge on the income tax (up from 12% the previous year). Marginal relief ensured the extra tax from the surcharge did not exceed the income above ₹1 crore.
Deductions
Was there a standard deduction for salaried employees in FY 2016-17?
No. There was no standard deduction in FY 2016-17. Instead, salaried employees could claim a tax-free transport allowance of ₹19,200 per year (₹1,600/month) plus a medical reimbursement exemption of up to ₹15,000 on bills. The ₹40,000 standard deduction arrived only in FY 2018-19.
What deductions were available in FY 2016-17?
Chapter VI-A deductions applied, including Section 80C up to ₹1,50,000 (EPF, PPF, LIC, ELSS, etc.), an additional ₹50,000 under 80CCD(1B) for NPS, and Section 80D health-insurance premium of ₹25,000 (₹30,000 for senior citizens), along with HRA and home-loan interest reliefs.
Companies
What was the corporate tax rate change in Budget 2016?
Budget 2016 introduced a 25% rate for new domestic manufacturing companies incorporated on or after 1 March 2016 that do not claim specified deductions. Existing small domestic companies with turnover up to ₹5 crore were taxed at 29% for FY 2016-17, against the standard 30%.
What is Section 115BBDA introduced in Budget 2016?
Section 115BBDA, introduced by Budget 2016, levied an additional 10% tax in the hands of resident individuals, HUFs and firms on dividend income exceeding ₹10 lakh in a year — over and above the Dividend Distribution Tax already paid by the company.
Using This Page
Are these FY 2016-17 rates still valid today?
No. These rates apply only to Financial Year 2016-17 (Assessment Year 2017-18) and are kept for historical reference, revisions or old-return work. The current default is the new regime for FY 2025-26 / AY 2026-27, where tax is Nil up to ₹12 lakh of taxable income. See the current income tax slabs page.
Where can I see the current income tax slabs?
For the latest slabs, visit the TaxClue income tax slabs page, which reflects the FY 2025-26 / AY 2026-27 new-regime structure (Nil up to ₹4 lakh, rising to 30% above ₹24 lakh, with tax Nil up to ₹12 lakh after the Section 87A rebate). You can also estimate your liability with the income tax calculator.
Can I still file or revise a return for FY 2016-17?
The normal window to file or revise a return for AY 2017-18 has long closed. In limited situations — such as an updated return under later provisions or in response to a notice — action may still be possible; consult a tax professional, as these figures are provided for reference only.
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