All about Income Tax for FY 2017-18 or AY 2018-19 + Automatic Master of Form 16 Part B with 12 BA for F.Y.2016-17 and A.Y.2017-18

As per the Budget presented by Finance Minister Arun Jaitley on 1 Feb 2017, the tax rate for those earning up to Rs 5 lakh is reduced to 5% and flat Rs 12,500 rebate offered to all taxpayers. But tax compliance will become stricter and delays in filing tax returns will cost money. This article gives Overview of Income Tax for FY 2017-18 AY 2018-19 applicable for income earned from 1 Apr 2017 to 31 Mar 2018, Income Tax Slab Rates for FY 2017-18 or AY 2018-19.This will be applicable, if passed, from 1 Apr 2017 to 31 Mar 2018

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·                                 The Budget has also proposed stricter rules for not filing tax returns on time. There will be a fee of 5,000 if the tax return is filed after the due date, but before 31 December of the assessment year. If filed after that, the fee will be 10,000. However, if the annual income of the taxpayer is up to 5 lakh, the fees will be lower at 1,000.

·                                 The tax rate for those earning up to 5 lakh has been reduced from 10% to 5%, a move that will affect nearly two crore taxpayers.The tax rebate enjoyed by this segment of taxpayers under Section 87 has been reduced from 5,000 to 2,500 and will apply only to incomes up to 3.5 lakh.

·                                 The tax rebate enjoyed by this segment of taxpayers under Section 87 has been reduced from 5,000 to 2,500 and will apply only to incomes up to 3.5 lakh.For other taxpayers, the Budget has offered a flat tax rebate of 12,500. If you add the savings on education cess, most taxpayers will save 12,875. Those earning over 1 crore will save over 14,000.However, upper

·                                 For other taxpayers, the Budget has offered a flat tax rebate of 12,500. If you add the savings on education cess, most taxpayers will save 12,875.

·                                 Those earning over 1 crore will save over 14,000.However, upper-middle-class taxpayers earning between 50 lakh and 1 crore will shell out more tax due to the 10% surcharge on tax.

           Simplification of the Income Tax Return form for income up to 5 lakh. This ITR form will now be a one-page document, very similar to the Saral form introduced several years ago. The finance minister also said that anyone filing tax returns for the first time will not attract scrutiny. This might induce individuals to start filing their tax returns.

• Salaried taxpayers who fudge house rent receipts will now find it difficult to claim exemption for housing rent allowance. The budget proposes to make it mandatory for TDS to be deducted if the rent exceeds 50,000 a month. Three years ago, it was made mandatory to mention the landlord’s PAN if the rent exceeded 1 lakh a year. Now, with the TDS requirement, it will become even more difficult to submit fake rent receipts to claim tax exemption.
• There is No Change in 80C limit  It is still Rs 1.5 lacs. The investment in NPS or National pension scheme gives you extra tax deduction of up to Rs 50,000
• NO RGESS Tax exemption from FY 2017-18 Tax exemption under section 80CCG for RGESS (Rajiv Gandhi Equity Scheme) would NOT be available from FY 2017-18 on wards. The deduction was introduced in Budget 2012 to encourage retail participation in stock market but failed to take off as desired.
• Tax-exemption to partial withdrawal from NPS Partial withdrawal up to 25% of the contribution made by an employee would be exempted from tax.

·         Income From House Property

• Interest deduction on rented property capped at Rs 2 Lakh.Tax break due to interest paid on rented homes (whether first or second) will now be capped at 2 lakh. This is likely to impact investment in real estate

• Professionals, salaried employees and smaller businessmen paying more than 50,000 a month as rent will have to deduct tax at source at 5%
• Reduced tax rate of 25% on firms with turnovers upto 50 cr in FY 2015-16 Period for carry-forward and use of MAT credit in creased from 10 to 15 years
• Beneficial withholding tax rate of 5% on interest on ECBs of Indian firms extended by three yrs till June 2020. Also extended to their rupee-denominated bonds
• Tax holiday to start-ups now available for 3 out of 7 yrs instead of existing 3 out of 5 yrs

Income Tax Slab Rates for FY 2017-18 or AY 2018-19

In AY 2017-18 or FY 2016-17,  there were three slabs — 10 percent income tax for annual income between Rs 2.5 lakh and Rs 5 lakh, 20 percent on annual income from Rs 5 lakh to Rs 10 lakh, and 30 percent on income above Rs 10 lakh. This will be applicable, if passed, from 1 Apr 2017 to 31 Mar 2018.

TAX Rate	MEN and WOMEN below 60 years	SENIOR CITIZEN(Between 60 yrs to 80 yrs)	For Very Senior Citizens(Above 80 years)
Basic Exemption	250000	300000	500000
5% tax	250001 to 300000	–	–
5% tax	300001 to 500000	300001 to 500000	–
20% tax	500001 to 1000000	500001 to 1000000	500001 to 1000000
30% tax	above 1000000	above 1000000	above 1000000
·                                 Surcharge:      ·                                                         10% surcharge on income tax if the total income exceeds Rs 50 Lakhs but below Rs 1 crore     ·                                                         15% surcharge on income tax if the total income exceeds Rs 1 crore     ·                                 Education Cess: 2% cess on income tax including surcharge     ·                                 Secondary and Higher Education Cess: 1% cess on income tax including surcharge    ·                                 Rebate under Section 87A: Rs 2,500 or 100% of income tax (whichever is lower) for individuals with income below Rs 3.5 Lakhs

On February 19, 2017 by www.taxexcel.net

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Download Automatic Master of Form 16 Part B for 100 & 50 Employees for F.Y. 2016-17.

1) Download Master of Form 16 Part B for 100 employees for F.Y.2016-17

2) Download Master of Form 16 Part B for 50 employees for F.Y.2016-17

The feature of this Excel Utility:-

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Chapter VIA List of All Deductions at a Glance, List of all Income Tax deductions from u/s 80C to 80U. Hi, Friends Here we are providing a list of all deductions covered under  Chapter VIA of Income tax act. In this article, we provide the complete list of deductions with Name of Section, Brief details for Section, List of Assessee’s who can avail that exemption, Amount of Deduction etc. Find Short details for Every Deduction like – Deduction under Section 80C, Maximum Deduction allowed u/s 80C, Deduction u/s 80CCC, Deduction u/s 80G, Deduction u/s 80U, Deduction u/s 80E, Deduction u/s 80D, Deduction u/s 80IA etc. Recently we provide a special article on “Paying Tax is better than Saving Tax!“. Now you can scroll down below and check more details for Chapter VIA List of All Deductions at a Glance

Chapter VIA List of All Deductions at a Glance

In this article, we provide a list of all Deductions are available under Chapter VIA of Income tax. In this article, we provide a list of all deductions by section wise covered under Chapter VIA. Now check below table for Chapter VIA List of All Deductions at a Glance.

Sections	Particulars	Allowed to	Quantum of deduction
80C	Deduction in respect of Life Insurance Premium, Contribution to Provident Fund, etc. Deduction in respect of contribution to certain pension funds	Individual and HUF	Max. Rs.1,50,000
80CCC	Deduction in respect of contribution to certain pension funds	Only individuals	Max. Rs.1,50,000
80CCD (1)	Deduction in respect of contribution to notified pension scheme of Central Government	Salaried employee or self-employed individual	Employer and employee contribution not exceeding 10% of salary in each case. Maximum deduction to an employee or self-employed person for his contribution limited to Rs.1,00,000
80CCD(2)	Deduction in respect of contribution to the Employee’s Pension Fund by the Emplyer	Salaried employee or self-employed individual	Contribution to the Employee’s Pension Fund by the Employer.This Additional Deduction out of the limit of U/s 80C Max. Rs.1.5 Lakh
80CCD(1B)	Additional deduction U.s 80C out of 1.5 Lakh to the employees Pension Scheme	Salaried employee or self	Max Rs. 50,000/ as additional deduction out of 1.5 Lakh.
80CCE	Limit on deductions under sections 80C, 80CCC and 80CCD (1)	N.A.	Rs.1,50,000
80CCG	Deduction in respect of investment made in an equity saving scheme	Individual who is resident in India	50%  of the amount invested or Rs.25,000 whichever is less
80D	Deduction in respect of medical insurance premium	Individual or HUF whether resident or non – resident	In case of individual – Maximum Rs.25,000 & Rs. 30,000/- for Sr.Citizen
80DD	Deduction in respect of maintenance including medical treatment of dependent who is a person with disability	For senior citizen Individual or HUF resident in India	Addl. Rs.5,000 Rs.75,000 or Rs.1,25,000 in case of a person with severe disability
80DDB	Deduction in respect of medical treatment, etc.	Individual or HUF resident in India	Max.Rs.60,000
80E	Deduction for interest paid on loan	For senior citizen Individual whether resident or not	Addl. Rs.20,000 Actual amount paid
80EE	Deduction in respect of interest on loan sanctioned during the financial year 2013 – 14 for acquiring residential house property	Individual only	Maximum Rs. 50,000
80G	Deduction in respect of donations to certain funds, charitable institutions, etc.	All assesses	(a)   100% or 50% of eligible donations, without applying qualifying limit in certain cases

On February 10, 2017 by www.taxexcel.net

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Finance Bill 2016, has raised to Rs. 5,000/- Under Section 87A. This newly amended section gives rebate up to the maximum of Rs. 5000/- to the assessee having Net Total Income Less than Rs. 5,00,000/-(Rs. Five lacs only). The rebate under this section is available to the resident Individuals w.e.f. A.Y. 2017-18.

“Section 87A An assessee, being an individual resident in India, whose total income does not exceed five Lacs rupees, shall be entitled to a deduction, from the amount of income-tax (as computed before allowing the deduction under this chapter i.e. Chapter VIA) on his total income with which he is chargeable for any assessment year, of an amount equal to hundred percent of income-tax or an amount of two thousand rupees, whichever is less.”

Conditions required to be fulfilled:

• ·   The rebate is allowed only to the individual assesses (not to HUF/Firm/AOP/BOI)
• ·                     The individual should be resident in India
• ·            Total income should be up to or less than Rs. 5,00,000/-. Total Income here means Income under all heads of Income (Salary, House property, Business & Profession, Capital Gain and Other sources) after deducting the deduction under chapter VI i.e. deduction from 80C to 80U.
• ·                  No deduction available to the Super Senior Citizens whose age is more than 80 years.
• Quantum of Rebate:
• The rebate will be the lower of
• ·                     100% of the tax payable on Total Income; or
• ·                     Rs. 5,000/-

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7) All the amended Section have in this utility as per Finance Bill 2016

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On December 03, 2016 by www.taxexcel.net

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What is Income Tax Rebate?

A Tax rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. The Income Tax Rebate in India is allowed for Individuals whose income falls under the tax slabs. Tax rebate rates are updated for every financial year as per the directions of the Indian government. The modifications made in the rebate structure are announced in Union Budget of the respective year.

Tax Rebate Rs.5,000/-U/s 87A for F.Y.2016-17

Section 87A of the Income Tax Act, 1961 was inserted by the Finance Act, 2013 with effect from 01-04-2014. The section 87A provides for an income tax rebate up to Rs. 2000/-(F.Y 2013-14) to Individuals having Taxable Income not exceeding Rs. 5,00,000/-. In Union Budget 2016, the Income Tax Rebate has been increased from Rs. 2000/- to Rs. 5,000/- and would be applicable from F.Y. 2016-17 onwards. The Rebate of Rs. 5,000/- would be given from the Total Tax payable by an Individual. It is pertinent to note here that this Rs. 5,000/- is to be subtracted from the Total Tax Payable and not from the Total Income of an Individual.

Eligibility for Income Tax Rebate

With a view providing tax relief to the individual assesses who are in lower income bracket a refund is provided for under Section 87A.

The rebate will be available if the assessee satisfies the following eligibility.

1.         The Taxpayer is a resident individual ( may be an ordinary resident or not ordinary resident).

2.         The Total Income or taxable income (i.e. gross total income minus deductions under Section 80C to 80U) is Rs. 5,00,000/- or less.

                  Income Tax Rebate Key Features

The following are the salient features of Income Tax Rebate u/s 87A.

·             Under Section 87A Tax Rebate is only available to Individuals. All categories of Individuals whether female or male or Senior Citizens are eligible to claim Income Tax Rebate as per Section 87A. The taxpayer under the class like HUF, LLP, Partnership Firms, Companies, LLP, etc. is not eligible to claim Income Tax Rebate under this section.

·             Income Tax Rebate u/s 87A is only available to Resident Individuals and not to Non-Resident Individuals.

·             From Financial Year 2016-17 onwards the total rebate allowed under section 87A would be Rs. 5,000/- or the total tax is payable (whichever is less).

·             Income Tax Rebate of Rs. 5,000/- is allowed before the levy of Education Cess and Secondary High Education Cess. In other words, Education Cess and SHEC-Secondary High Education Cess would be levied on the tax payable after allowing for Income Tax Rebate of Rs. 5,000/-.

·             For Super Senior Citizen (Aged above 80 years) There is no benefit of this Rebate as their Income up to Rs. 5,00,000/- is already exempted from the levy of Income Tax.

Note: Rebate under Section 87A is not available for the case of a non-resident individual, resident or non-resident HUF/ AOP/ BOI or any taxpayer other than a resident individual.

Tax Rebate for Senior Citizens

The Income Tax Act, 1961 has made provisions for tax rebates for senior citizens(aged over 65 years). The Section 88B contains all details about such tax rebates. But, the most significant fact about such rebates is that the individual concerned is entitled to receive rebates till Rs. 20,000/- depending upon the amount of tax payable on him.

Note: Rebate benefits u/s 87Ais not available to super senior citizens.

Income Tax Rebate Calculation

As Section 87A provides for Income Tax Rebate, the assessee will first compute the Total Tax Payable and then reduce Rs. 5,000/- from this Tax payable provided his Total Income is less than Rs. 5,00,000/-. If taxpayer’s Total Income is more than Rs. 5,00,000/-, then he won’t be able to claim income tax rebate under Section 87A.

·             The Net Taxable Income of Rs. 5,00,000/- is the total of incomes under all heads i.e. House Property, Salary,  Capital Gains, Business or Profession,  and Other Sources.

·             In case, there is any loss under any head due to the payment of housing loan or for any other reason, such loss would also be deducted from the total income.

·             Tax Deductions from Section 80C to Section 80U under Chapter VI-A would also be allowed, and the resultant figure i.e. Total Income should be less than Rs. 5,00,000/- for an individual to claim income tax rebate of Rs. 5,000/- under Section 87A.

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On July 14, 2016 by www.taxexcel.net

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