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Showing posts with label Income Tax Calculator for F.Y. 2017-18. Show all posts
Showing posts with label Income Tax Calculator for F.Y. 2017-18. Show all posts

Sunday 1 October 2017

The Central Finance Budget has already passed by the Parliament for the Financial Year 2017-18 and also some changes have made in this Finance Budge, The Section 87A will be continue and reduce Tax Rebate From Rs. 5,000/ to 2,500 and U/s 80 TTA (the Savings Bank Interest also entitled in this Financial Year 2017-18), K.V.P. has introduce , P.P.F. Limit has increase up to Rs. 1,50,000/- & Pension Fund U/S 80CC Max Rs.1.5 Lakh.

Sunday 10 September 2017


1. The tax rate for income between Rs 2.5 lakh to Rs 5 lakhs has been reduced to 5% from 10%
2. 10% Surcharge introduced for Income between Rs 50 Lakhs to Rs 1 crore
3. Tax Rebate under Section 87A reduced to Rs 2,500 for income up to Rs 3.5 Lakhs
4. Tax exemption under RGESS (Rajiv Gandhi Equity Scheme) has been discontinued from FY 2017-18

Download: Automated All in One for Non-Govt Employees for F.Y.2017-18 with Form 12 BA.

5. Loss from House/Property capped at Rs 2 Lakh irrespective if the house is rented or self-occupied
6. NPS tax deduction for self-employed increased to 20% of gross income
Mentioning Some Points I am frequently asked
1. There is NO tax benefit on Infrastructure Bonds
2. There is NO separate tax slab for Men & Women

We give a brief of all the tax saving sections below:

1. Section 80C/80CCC/80CCD

These 3 are the most popular sections for tax saving and have lot of options to save tax. The maximum exemption combining all the above sections is Rs 1.5 lakhs. 80CCC deals with the pension products while 80CCD includes Central Government Employee Pension Scheme.
You can choose from the following for tax saving investments:
1.                 Employee/ Voluntary Provident Fund (EPF/VPF)
2.                 PPF (Public Provident fund)
3.                 Sukanya Samriddhi Account
4.                 National Saving Certificate (NSC)
5.                 Senior Citizen’s Saving Scheme (SCSS)
6.                 5 years Tax Saving Fixed Deposit in banks/post offices
7.                 Life Insurance Premium
8.                 Pension Plans from Life Insurance or Mutual Funds
9.                 NPS
10.            Equity Linked Saving Scheme (ELSS – popularly known as Tax Saving Mutual Funds)
11.            Central Government Employee Pension Scheme
12.            Principal Payment on Home Loan
13.            Stamp Duty and registration of the House
14.            Tuition Fee for 2 children
We have done a comprehensive analysis of all the above available options and you can choose which is the best for you.

Download: Automated All in One TDS onSalary for Govt & Non-Govt employees For F.Y.2017-18 with Arrears ReliefCalculation U/s 891(1) & Form 10e

2. Section 80CCD(1B) – Investment in NPS

Budget 2015 has allowed additional exemption of Rs 50,000 for investment in NPS. This is continued this year too. We have done a complete analysis which you can read by clicking the link below.

Download: Automated Pan Application Form 49A( New Format)


3. Payment of interest on Home Loan (Section 24/80EE)

The interest paid up to Rs 2 lakhs on home loan for self-occupied or rented home is exempted u/s 24. Earlier there was NO limit on interest deduction on rented property. Budget 2017 has changed this and now the tax exemption limit for interest paid on home loan is Rs 2 lakhs, irrespective of it being self-occupied or rented. However for rented homes any loss in excess of Rs 2 lakhs can be carried forward for up to 7 years.
Budget 2016 had provided additional exemption up to Rs 50,000 for payment of home loan interest for first time home buyers. To avail this benefit the value of home should not exceed Rs 50 lakhs and loan should not be more than Rs 35 lakhs.

4. Payment of Interest on Education Loan (Section 80E)

The entire interest paid (without any upper limit) on education loan in a financial year is eligible for deduction u/s 80E. However there is no deduction on principal paid for the Education Loan.
The loan should be for education of self, spouse or children only and should be taken for pursuing full time courses only. The loan has to be taken necessarily from approved charitable trust or a financial institution only.
The deduction is applicable for the year you start paying your interest and seven more years immediately after the initial year. So in all you can claim education loan deduction for maximum eight years.

Download:- All in One TDS on Salary for Govt and Non-Govt Employees for F.Y. 2017-18


5. Medical insurance for Self and Parents (Section 80D)

Premium paid for Mediclaim/ Health Insurance for Self, Spouse, Children and Parents qualify for deduction u/s 80D. You can claim maximum deduction of Rs 25,000 in case you are below 60 years of age and Rs 30,000 above 60 years of age.
An additional deduction of Rs 25,000 can be claimed for buying health insurance for your parents (Rs 30,000 in case of either parents being senior citizens). This deduction can be claimed irrespective of parents being dependent on you or not. However this benefit is not available for buying health insurance for in-laws.
HUFs can also claim this deduction for premium paid for insuring the health of any member of the HUF.
To avail deduction the premium should be paid in any mode other than cash. Budget 2013 had introduced deduction of Rs 5,000 (with in the Rs 25,000/30,000 limit) is also allowed for preventive health checkup for Self, Spouse, dependent Children and Parents. Its continued to this year too.

6. Treatment of Serious disease (Section 80DDB)

Cost incurred for treatment of certain disease for self and dependents gets deduction for Income tax. For very senior citizens (more than 80 years of age) the deduction amount is up to Rs 80,000;  while for  senior citizens (between 60 to 80 years of age) it Rs 60,000 and for all others its Rs 40,000. Dependent can be parents, spouse, children or siblings. They should be wholly dependent on you.
To claim the tax exemption you need a certificate from specialist from Government Hospital as proof for the ailment and the treatment. In case the expenses have been reimbursed by the insurance companies or your employer, this deduction cannot be claimed.In case of partial reimbursement, the balance amount can be claimed as deduction
Diseases Covered:
1.                 Neurological Diseases
2.                 Parkinson’s Disease
3.                 Malignant Cancers
4.                 AIDS
5.                 Chronic Renal failure
6.                 Hemophilia
7.                 Thalassaemia

Download: Automated All in One TDS on Salary for West Bengal Govt employees for F.Y. 2017-18


8. Physically Disabled Tax payer (Section 80U)

Tax Payer can claim deduction u/s 80U in case he suffers from certain disabilities or diseases. The deduction is Rs 75,000 in case of normal disability (40% or more disability) and Rs 1.25 Lakh for severe disability (80% or more disability)
A certificate from neurologist or Civil Surgeon or Chief Medical Officer of GovernmentHospital would be required as proof for the ailment.
Disabilities Covered
1.                 Blindness and Vision problems
2.                 Leprosy-cured
3.                 Hearing impairment
4.                 Locomotor disability
5.                 Mental retardation or illness
6.                 Autism
7.                 Cerebral Palsy

Download: Automated Arrears Relief Calculator U/s 89(1)with Form 10 E From F.Y.2000-01 to F.Y. 2017-18


9. Physically Disabled Dependent (Section 80DD)
In case you have dependent who is differently abled, you can claim deduction for expenses on his maintenance and medical treatment up to Rs 75,000 or actual expenditure incurred, whichever is lesser. The limit is Rs 1.25 Lakh for severe disability conditions i.e. 80% or more of the disabilities. Dependent can be parents, spouse, children or siblings. Also the dependent should not have claimed any deduction for self disability u/s 80DDB.
To claim the tax benefit you would need disability certificate issued by state or central government medical board.
You can also claim tax exemption on premiums paid for life insurance policy (in tax payers’ name) where the disabled person is the beneficiary. In case the disabled dependent expires before the tax payer, the policy amount is returned back and treated as income for the year and is fully taxable.
40% or more of following Disability is considered for purpose of tax exemption
1.                 Blindness and Vision problems
2.                 Leprosy-cured
3.                 Hearing impairment
4.                 Locomotor disability
5.                 Mental retardation or illness

Download:- Automated H.R.A. Calculator U/s 10(13A)

10. Donations to Charitable Institutions (Section 80G)
The government encourages us to donate to Charitable Organizations by providing tax deduction for the same u/s 80G. Some donations are exempted for 100% of the amount donated while for others its 50% of the donated amount. Also for most donations, the maximum exemption you can claim is limited to 10% of your gross annual income. Please note that only donations made in cash or cheque are eligible for deduction. Donations in kind like giving clothes, food, etc is not covered for tax exemption.
How to Claim Sec 80G Deduction?
1.                 A signed & stamped receipt issued by the Charitable Institution for your donation is must
2.                 The receipt should have the registration number issued by Income Tax Dept printed on it
3.                 Your name on the receipt should match with that on PAN Number
4.                 Also the amount donated should be mentioned both in number and words

Download: Automated All in One TDS on Salary for Non-Govt Employees forF.Y.2017-18.

13. House Rent in case HRA is not part of Salary (Section 80GG)

In case, you do not receive HRA (House Rent Allowance) as a salary component, you can still claim house rent deduction u/s 80GG. Tax Payer may be either salaried/pensioner or self-employed.
To avail this you need to satisfy the following conditions:
1.                 The rent paid should be more than10% of the income
2.                 No one in the family including spouse, minor children or self should own a house in the city you are living. If you own a house in different city, you have to consider rental income on the same
The House Rent deduction is lower of the 3 numbers:
1.                 Rs. 5,000 per month [changed from Rs 2,000 to Rs 5,000 in Budget 2016]
2.                 25% of annual income
3.                  (Rent Paid – 10% of Annual Income)

You need to fill form no 10BA along with the tax return form

Thursday 27 April 2017

In his Budget 2017 speech, Finance Minister Arun Jaitley proposed to reduce the existing rate of taxation of those with income between Rs 2.5 lakh to Rs 5 lakh from 10 per cent to 5 per cent.


Finance Minister Arun Jaitley on Wednesday tabled the Union Budget for the year 2017-18 where he announced in personal income tax limits. The move which is much appreciated is aimed at softening the impact on demonetisation. Here is you can use the financial calculator to know your Income Tax slabs, rates, and rebates post-Budget 2017.

Download All in One Income Tax preparation Excel Based Software for Central & State Employees for the Financial Year 2017-18 & Assessment Year 2018-19 as per the Finance Budget 2017 [ This Excel Utility have all the amended tax section and new tax slab]


1) This Excel Utility can prepare at a time Tax Compute Sheet + Individual Salary Structure as per Central & State Salary Pattern + Calculate Automatic House Rent Exemption Calculation U/s 10(13A) + Automatic Form 16 Part A&B and Form 16 Part B for F.Y.2017-18)

2) Automatic Convert the amount into the In-Words.

3) All Amended Income Tax Section have in this Utility.

4) Income Tax Slab Rate have in this Utility as per Finance Budget 2017-18,

In his Budget 2017 speech, Finance Minister Arun Jaitley proposed to reduce the existing rate of taxation of those with income between Rs 2.5 lakh to Rs 5 lakh from 10 per cent to 5 per cent.

According to the new figure, a person with a taxable income (after deductions such as Section 80C etc) of Rs 3.5 lakh will pay a tax of Rs 2575 as against Rs 5150, which was paid earlier. Also, persons with taxable income of over Rs 5 lakh to Rs 50 lakh will have to pay Rs 12875, which also included the cess saved.

However, those who are earning over Rs 50 lakh to Rs 1 crore will be paying a flat surcharge of 10 per cent on the total tax payable by them. For example, if a person is earning Rs 60 lakh annually he/she has to pay Rs 1,45,204 additional tax due to the surcharge.

Those who have an income of over Rs 1 crore would continue to pay the surcharge of 15 per cent but would get the meager benefit of saving Rs 12,875 (including saving of chess but excluding the saving on surcharge). For example, if a person has a gross income of Rs 1.2 crore will pay Rs 29,65,706 as taxes including surcharge and cess against Rs 39,80,512, which was payable earlier.

Income Tax Slab & Rate as per Union Budget 2017 for the Financial Year 2017-18 & Assessment Year 2018-19

 Income Slab
 Tax Rate
  Income up to Rs 2,50,000
 Nil
 Income up to Rs 2,50,000/- to Rs 5 lakh
 5 per cent
  Income up to Rs 5 lakh to Rs 10 lakh
 20 per cent
 Income more than Rs 10 lakh
 30 per cent
 Income more than Rs 50 lakh
 30 per cent + 10 per cent surcharge
 Income more than Rs 1 crore
 30 per cent + 15 per cent surcharge