IT Return Filing - Form 16
Whose income exceeds the maximum amount, which is not chargeable to the income tax (i.e. Rs 250000
generally), is an assessee, and shall be chargeable to the income tax at the rate or rates prescribed under the finance act for the relevant assessment year, shall be determined on basis of his residential status.
WHAT IS ASSESSMENT YEAR AND FINANCIAL YEAR?
Financial year starts from 1st April and ends on 31st March (wherein there is income pertaining to the whole year or part of the year). Assessment year is the year immediately following the financial year wherein the income of the F.Y. is assessed.
For example F.Y. 2014-15 means Period from 01/04/2014 to 31/03/2015. For above F.Y. the relevant Assessment Year (A.Y.) is 2015-16.
RATE OF INCOME TAX
Income tax is a tax payable, at the rate in force enacted by the Union Budget (Finance Act) for every Assessment Year, on the Total Income earned in the Previous Year by every Person.
The chargeability is based on nature of income, i.e., whether it is revenue or capital. The rates of taxation of income are-: Income Tax Rates/Slabs Rate (%) (applicable for assessment year 2015-16)