Check out the Section 87A rebate for FY 2017-18 in the following section. The Income Tax Rebate under Section 87A for AY 2018-19 is allowed as per the following schedule for different Financial Years.
Showing posts with label Income Tax Slab for F.Y.2017-18. Show all posts
Showing posts with label Income Tax Slab for F.Y.2017-18. Show all posts
Monday 11 June 2018
Sunday 11 February 2018
If you have a dependent person in your family who is suffering from a disability, then you can avail tax benefit under section 80DD. This deduction is offered to help you take care of your disabled family member who is dependent on you.
If the individual himself is suffering from a disability, then he can claim tax benefits under section 80U.
Wednesday 26 July 2017
Sunday 21 May 2017
Download Automated Income Tax Preparation Excel Based All in One TDS on Salary for Only Non-Govt Employees for the Financial Year 2017-18 and Assessment Year 2018-19. [ This Excel Based Utility can prepare at a time your Individual Tax computed Sheet + Individual Salary Structure as per the Non-Govt Employees Salary Pattern + Automated H.R.A. Calculation + Automated Form 12 BA + Automated Form 16 Part A&B and Form 16 Part B as per the latest Income Tax Slab.]
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Main Data Input Sheet
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Individual Salary Structure
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Individual Tax Computed Sheet |
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Form 16 Part A&B |
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Form 16 Part B
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As per the Budget, we can only say that the Deductions may be the following because it may get changed in final Budget.:
1. Deduction u/s 80C, 80CCC, 80CCD is Rs. 1,50,000. (80CCC - Deduction for Annuity Plan)
A) Additional Deduction can be entitled U/s 80CCD(2) Out of Max Limit Rs. 1.5 Lah U/s 80C
B) Additional Deduction can entitled U/s 80CCD(1B) Max Rs. 50,000/- out of Max Limit Rs.1.5 Lakh U/s 80C
2. Deduction u/s 80D is Rs. 25000 for general and Rs. 30000 for Senior citizens. (For Mediclaim paid)
3. Deduction u/s 80E here you can take education loan from the financial institution for higher studies and can avail tax deduction for the maximum of 7 years.
4. Deduction u/s 80G - Deduction for donations, here you can get 100% and 50% deduction of the amount paid as a deduction but percentage depends upon the receiver.
5. Deduction u/s 80GG Deduction for House rent paid....
Deduction is least of
A) Rent paid less 10% of total income.
B) Rs. 5000 per month
C) 25% of Total Income.
6. Deduction u/s 80U. Deduction for the person suffering from physical Disability... normal disability deduction of Rs.75000, and severe disability deduction of Rs. 125000.
7. 100% TAX DEDUCTION on contributions made to SWACHH BHARAT & CLEAN GANGA initiatives.
8. Deduction u/s 80DD Expenditure on account of specified diseases Rs.80000.
9. Deduction u/s 80TTA Deduction of Income received from Saving Bank Interest Rs. 10000.Max.
10. Deduction u/s 87A: Tax rebate of Rs.2,500/- who’s taxable Income is less than Rs.3,50000/-
2. Deduction u/s 80D is Rs. 25000 for general and Rs. 30000 for Senior citizens. (For Mediclaim paid)
3. Deduction u/s 80E here you can take education loan from the financial institution for higher studies and can avail tax deduction for the maximum of 7 years.
4. Deduction u/s 80G - Deduction for donations, here you can get 100% and 50% deduction of the amount paid as a deduction but percentage depends upon the receiver.
5. Deduction u/s 80GG Deduction for House rent paid....
Deduction is least of
A) Rent paid less 10% of total income.
B) Rs. 5000 per month
C) 25% of Total Income.
6. Deduction u/s 80U. Deduction for the person suffering from physical Disability... normal disability deduction of Rs.75000, and severe disability deduction of Rs. 125000.
7. 100% TAX DEDUCTION on contributions made to SWACHH BHARAT & CLEAN GANGA initiatives.
8. Deduction u/s 80DD Expenditure on account of specified diseases Rs.80000.
9. Deduction u/s 80TTA Deduction of Income received from Saving Bank Interest Rs. 10000.Max.
10. Deduction u/s 87A: Tax rebate of Rs.2,500/- who’s taxable Income is less than Rs.3,50000/-
Other Related Deductions available u/s 10 of Income Tax:
A. Exemption of transport allowance Rs 19,200 /-P.A & Phy.disable persons can get Rs.38500/- P.A.
B. Tax-free infra bonds proposed for funding irrigation, rail & road infrastructure projects.
C. Income tax exemption on Interest paid on Housing Loan u/s24B of Rs.200000. on a self-occupied property.
D. HRA (House Rent Allowance) Least of HRA paid or Rent paid less 10% of salary or 40% of salary (50% in case of Metro city)
E. Leave Travel Allowance
F. Children Education Allowance Rs.100 per month per child and max 2 children.
G. Hostel Allowance, Allowance Rs.300 per month per child and max 2 children.
H. Deduction u/s 80 EE. Additional House Building Loan Interest up to Rs. 1,00,000/- will be admissible who have paid the HBL Interest w.e.f. 1/4/2013 (Excluding the Section 24 B)
A. Exemption of transport allowance Rs 19,200 /-P.A & Phy.disable persons can get Rs.38500/- P.A.
B. Tax-free infra bonds proposed for funding irrigation, rail & road infrastructure projects.
C. Income tax exemption on Interest paid on Housing Loan u/s24B of Rs.200000. on a self-occupied property.
D. HRA (House Rent Allowance) Least of HRA paid or Rent paid less 10% of salary or 40% of salary (50% in case of Metro city)
E. Leave Travel Allowance
F. Children Education Allowance Rs.100 per month per child and max 2 children.
G. Hostel Allowance, Allowance Rs.300 per month per child and max 2 children.
H. Deduction u/s 80 EE. Additional House Building Loan Interest up to Rs. 1,00,000/- will be admissible who have paid the HBL Interest w.e.f. 1/4/2013 (Excluding the Section 24 B)
I. U/s 80TTA: - Interest of Savings Bank Max Rs. 10,000/-
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
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Tax Rate
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Income up to Rs 2,50,000
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Nil
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Income up to Rs 2,50,000/- to Rs 5 lakh
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5 per cent
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Income up to Rs 5 lakh to Rs 10 lakh
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20 per cent
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Income more than Rs 10 lakh
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30 per cent
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Income more than Rs 50 lakh
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30 per cent + 10 per cent surcharge
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Income more than Rs 1 crore
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30 per cent + 15 per cent surcharge
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Saturday 18 March 2017
The halving of the tax rate for those with incomes between Rs 2.5 lakh and Rs 5 lakh will result in a tax benefit of Rs 12,500 for everyone as the tax reduces from Rs 25,000 (10 per cent of 2,50,000) to Rs 12,500 (5 per cent of 2,50,000).
The Finance Minister Arun Jaitley gave the salaried class something to cheer for. In his Union Budget 2017 speech, Jaitley halved the tax rate for those people whose income is between Rs 2.5 lakh to Rs 5 lakh from 10 per cent to 5 per cent.
However, the tax rate of 20 per cent and 30 per cent on those with incomes between Rs 5 lakh to Rs 10 lakh and above Rs 10 lakh respectively remains the same.
DownloadAutomated Income Tax Calculator for Financial Year 2017-18 & AssessmentYear 2018-19 ( As per Finance Budget 2017-18)
This halving of the tax rate for those with incomes between Rs 2.5 lakh and Rs 5 lakh will result in a tax benefit of Rs 12,500 for everyone as the tax reduces from Rs 25,000 (10 per cent of 2,50,000) to Rs 12,500 (5 per cent of 2,50,000).
Jaitley has also reduced the rebate under section 87A from Rs 5,000 to Rs 2,500 with this rebate being made available to those people whose taxable income is less than Rs 5 lakh per year.
On the other end of the spectrum, those people whose income exceeds Rs 50 lakh but is less than Rs 1 crore will have to pay a surcharge of 10 per cent. Those with a taxable income of Rs 1 crore and more will continue to pay a surcharge of 15 per cent.
Tax slab for an individual of below 60 years of age:
Tax Slab for F.Y. 2017-18 & A.Y.2018-19
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New Tax slab
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Income below Rs 2.5 lakh
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No Tax
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Rs 2.5 lakh to Rs 5 lakh
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5%
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Rs 5 lakh to Rs 10 lakh
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20%
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Income above Rs 10 lakh
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30%
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Tax Liability
Under the new tax slab, the tax liability for people who earn Rs 3 lakh per annum will be zero after the rebate of Rs 2,500 under Section 87A.
In his Budget Speech, finance minister Arun Jaitley said if a person is earning Rs 4.5 lakh in a financial year, his tax liability will be zero if he or she claims a deduction of Rs 1.5 lakh under Section 80C.
Friday 17 March 2017
This means that everyone under the tax bracket of Rs 50 lakh stands to gain Rs 12,500 tax benefit in the coming year.
In a major step, Finance Minister Arun Jaitley announced the reduction of the existing rate of taxation for individuals with income ranging between Rs 2.5 lakh to Rs 5 lakh to 5% instead of 10%. There will be a surcharge of 10% for those whose annual income is Rs 50 lakh to Rs 1 crore. Additionally, the 15% surcharge on Rs 1 crore or more remains unchanged. This is to make up for Rs 15,000 crore loss due to the cut in the personal income tax rate.
“This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50% of their existing liability. In order not to have duplication of benefit, the existing benefit of rebate available to the same group of beneficiaries is being reduced to Rs 2500 available only to assessees up to the income of Rs 3.5 lakhs. The combined effect of both these measures will mean that there would be zero tax liability for people getting income up to Rs 3 lakhs p.a. and the tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs,” the finance minister said in his budget.
“If the limit of Rs 1.5 lakh under Section 80C for investment is used fully, the tax would be zero for people with income of Rs 4.5 lakhs. While the taxation liability of people with income up to Rs 5 lakhs is being reduced to half, all the other categories of taxpayers in the subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The total amount of tax foregone on account of this measure is Rs 15,500 crores,” he said.
Monday 27 February 2017
Income Tax 2017-18 (A.Year 2018-19) Rate, Exemptions, Deductions and Rebate for Salaried Employees under Section 10, Section 24, Section 89(1), Chapter VIA, and Section 87A
Income Tax Rate 2017-18
Section 10 (13A) – Exemption in respect of HRA:
Under Sec. 10(13A), an employee who is in receipt of House Rent Allowance (HRA) can claim exemption, if he does not live in his own house, and pays rent in excess of 10% of his salary for his residential accommodation.
Exemption u/s 10(13A) is the least of the following
1. Actual amount of HRA received
2. 50% (for Chennai, Mumbai, Kolkata and Delhi) / 40% (for other places) of the Salary for the relevant period
3. Rent paid Less 10% of Salary for the relevant period. Free Download H.R.A. Exemption Calculator U/s 10(13A)
Section 87A – Rebate of Income Tax for Taxable income up to Rs. 5 Lakh
Finance Act 2016 provides for rebate of Income up to Rs. 5000/- in respect of Persons who have Taxable not exceeding Rs. 5 lakh.
Section 10(14) – Transport Allowance and Children Education Allowance (CEA)
Under Section 10(14), the Budget FY 2016-17 lets you claim Rs. 19,200 tax exemption as transport allowance
And Rs. 2,400 tax exemption as Children Education Allowance (CEA) in a financial year.
Section 24(b) – Home Loan
If you have taken a Home Loan, then you can claim a tax deduction on the interest component of the loan under Section 24(b). For self-occupied properties, you can benefit from deductions of up to Rs. 2,00,000.
Section 89(1) – Income Tax relief in respect of Arrears of Salary pertaining to previous years
If arrears of salary has been received in Financial year 2016-17 related to previous years then Relief of Income Tax can be claimed u/s 89(1) by accounting income from arrears in respective years on notional basis. Download Automatic Arrears Relief Calculator with Form 10E from F.Y.2001-02 to F.Y. 2016-17
Deductions allowed under Chapter VI A of Income Tax Act
Deduction Limit – Sec 80CCE. As per Section 80CCE, deduction can be claimed upto Rs. 1,50,000 for the payments / contributions made under Sections 80C, 80CCC and 80CCD[ Additional deduction U/s 80CCD(2) & 80CCD(1B) deduction out of U/s 80C 1.5 Lakh]
Section 80C – Subject to overall limit of Rs. 1,50,000 under Section 80CCE
For investments in specified schemes, saving instruments etc.
1. Life insurance premium for policy:
a) in case of individual, on life of assessee, assessee’s spouse and any child of assessee
b) in case of HUF, on life of any member of the HUF
a) in case of individual, on life of assessee, assessee’s spouse and any child of assessee
b) in case of HUF, on life of any member of the HUF
2. Sum paid under a contract for a deferred annuity:
a) in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)
b) in case of HUF, on life of any member of the HU
a) in case of individual, on life of the individual, individual’s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity)
b) in case of HUF, on life of any member of the HU
3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children [qualifying amount limited to 20% of salary]
4. Contributions by an individual made under Employees’ Provident Fund Scheme
5. Contribution to Public Provident Fund Account in the name of:
a) in case of individual, such individual or his spouse or any child of such individual
b) in case of HUF, in the name of any member there of
a) in case of individual, such individual or his spouse or any child of such individual
b) in case of HUF, in the name of any member there of
6. Contribution by an employee to a recognized provident fund
7. Contribution by an employee to an approved superannuation fund
8. Subscription to any notified security or notified deposit scheme of the Central Government.
For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian.
For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian.
9. Subscription to notified savings certificates [National Savings Certificates (VIII Issue)]
10. Contribution for participation in unit-linked Insurance Plan of UTI:
a) in case of an individual, in the name of the individual, his spouse or any child of such individual
b) in case of a HUF, in the name of any member thereof
a) in case of an individual, in the name of the individual, his spouse or any child of such individual
b) in case of a HUF, in the name of any member thereof
11. Contribution to notified unit-linked insurance plan of LIC Mutual Fund:
a) in the case of an individual, in the name of the individual, his spouse or any child of such individual
b) in the case of a HUF, in the name of any member thereof
a) in the case of an individual, in the name of the individual, his spouse or any child of such individual
b) in the case of a HUF, in the name of any member thereof
12. Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008]
13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children
14. Certain payments for purchase/construction of residential house property
15. Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both
16. Sum paid towards notified annuity plan of LIC or other insurer
17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005)
18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI Retirement Benefit Pension Fund)
19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions
20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in ‘eligible issue of capital’ referred to above. 21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified.
21. Subscription to notified bonds issued by the NABARD.
22. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions)
23. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions)
Section 80CCC – Subject to overall limit of Rs. 1,50,000 under Section 80CCE
Contribution to certain specified Pension Funds such as LIC or other authorised Insurance Companies
Section 80CCD(1) – – Subject to overall limit of Rs. 1,50,000 under Section 80CCE
Deduction in respect of contributions to National Pension Scheme / System (NPS) notified by Central Government
Limit : 10% of salary in case of employees, 10% of gross total income in case of others
Section 80CCD(1B)
Deduction in respect of the deposit under a pension scheme notified by Central Government (NPS) up to Rs. 50,000/-
Section 80CCD(2)
Deduction in respect of employer contributions to NPS – National Pension Scheme / System – This deduction is available over and above the Rs. 1.5 lakh limit
Section 80D
Amount invested in Health Insurance
In case of Individual, amount paid: a) For self, spouse and dependent children: Up to Rs. 25,000 (Rs. 30,000 if specified person is a senior citizen or very senior citizen) b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 30,000 if parent is a senior citizen or very super senior citizen) In case of HUF, up to Rs. 25,000 (Rs. 30,000 if specified person is a senior citizen or very senior citizen).
The aggregate amount of deduction cannot exceed Rs. 60,000/- in case of an individual.
The aggregate amount of deduction cannot exceed Rs. 60,000/- in case of an individual.
Section 80DD
Expenditure incurred for the medical treatment of a dependent (spouse, children, parents, brothers and sisters of the individual) up to Rs. 75,000 (Rs. 1,25,000 in case of severe disability)
Section 80DDB
Expenditure incurred for medical treatment of specified diseases for self, or wholly dependent spouse, children, parents, brothers and sisters up to Rs. 40,000 (Rs. 60,000 in case of senior citizen and Rs. 80,000 in case of very senior citizen)
Section 80E
Interest paid on Educational Loan with no limit
Section 80EE
Interest on loan for acquiring residential house property, sanctioned during the financial year 2016-17. The Housing Loan availed should be up to Rs. 35 lakh and should have been availed in the year 2016-17
Section 80G
Deduction in respect of donations to certain funds, charitable institutions, etc.
Section 80GG
Rent paid for residential accommodation from the income of Tax Payer / assessee who is not in receipt of HRA
Least of the following shall be exempt from tax: a) Rent paid in excess of 10% of total income*;
b) 25% of the Total Income; or
c) Rs. 5,000 per month.
b) 25% of the Total Income; or
c) Rs. 5,000 per month.
Section 80 TTA
Interest on Savings Bank accounts subject to maximum of Rs. 10,000
Section 80U
Exemption of income tax for an income up Rs. 75,000 for persons with disability (Rs. 1,25,000 in case of persons with severe disability)
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