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income-tax-slabs-fy-2017-18

 

Income Tax Slab for the Financial Year 2017-18

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31st July was the due date to file Income Tax return, Now the due date of Income tax return has extended for one month i.e. 31st August is the due date to file your return to avoid tax penatlySee posts : How to e-file Income Tax Return and How to downloand form 26AS online .

First question of every person to me is:

  1. In which income tax slab I fall?
  2. Which deductions I can avail?
  3. What amount of Income Tax I need to pay?
  4. What is the procedure to file my income tax return?
  5. Can I file my income tax return myself?

So here comes my blog to explain income tax slabs for the financial year 2017-18. I will also talk about various deductions that can be availed as per various applicable conditions.

Introduction to Income Tax Slab for the F.Y.17-18 Income Tax Slabs depends mainly on your status like an Individual (resident or not), an HUF, a company, a firm, an AOP/BOI & Local authorities.
  • No tax for individuals with income less than ₹ 2,50,000
  • 5% tax with income Rs 2.5 lacs to 5 lacs for different age groups
  • 20% tax with income Rs 5 lacs to 10 lacs
  • 30% tax with income above Rs. 10 lacs.
  • Invest up to Rs.1.5 lacs under Sec 80C and save tax.
  • Invest up to Rs. 50,000 in NPS (National Pension Scheme u/s 80CCD (1B) and save tax.
  • Other deductions under section 80D, 80E, 80EE, 80G, 80TTA and section 24 (subject to the payment and conditions apply) can also be availed and save tax.
  • Tax Rebate u/s 87A is available to Residents (Not NRI) whose total income does not exceed Rs. 3,50,000 during the financial year, allowed up to (Rs. 2500 or 100% of Tax whichever is less)
 Individual Resident taxpayers lie in three categories:
  1. Individuals (below the age of 60 years) whether resident or non-resident Indian.
  2. Resident Senior citizens (age of 60 years and above but below 80 years).
  3. Resident Super senior citizens (age of 80 years or above 80 years).
1. Income Tax Slabs for Individual Tax Payers (with age less than 60 Years)
Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 2,50,000 No tax
Income from Rs 2,50,000 – Rs 5,00,000 5% 3% of Income Tax
Income from Rs 5,00,000 – 10,00,000 20% 3% of Income Tax
Income more than Rs 10,00,000 30% 3% of Income Tax
  • Surcharge: 10% of income tax, where total income exceeds Rs.50 lac up to Rs.1 crore.
  • Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
  • Tax Rebate u/s 87A is available to Residents (Not NRI) whose total income does not exceed Rs. 3,50,000 during the financial year, allowed up to (Rs. 2500 or 100% of Tax whichever is less)
2. Income Tax Slabs for Senior Citizens (with age 60 Years or more but less than 80 Years)
Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 3,00,000 No tax
Income from Rs 3,00,000 – Rs 5,00,000 5% 3% of Income Tax
Income from Rs 5,00,000 – 10,00,000 20% 3% of Income Tax
Income more than Rs 10,00,000 30% 3% of Income Tax
  • Surcharge: 10% of income tax, where total income exceeds Rs.50 lac up to Rs.1 crore.
  • Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
  • Tax Rebate u/s 87A is available to Residents (Not NRI) whose total income does not exceed Rs. 3,50,000 during the financial year, allowed up to (Rs. 2500 or 100% of Tax whichever is less)
3. Income Tax Slabs for Senior Citizens (with the age of 80 Years or More)
Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 5,00,000 No tax
Income from Rs 5,00,000 – 10,00,000 20% 3% of Income Tax
Income more than Rs 10,00,000 30% 3% of Income Tax
  • Surcharge: 10% of income tax, where total income exceeds Rs.50 lac up to Rs.1 crore.
  • Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
  • Tax Rebate u/s 87A is available to Residents (Not NRI) whose total income does not exceed Rs. 3,50,000 during the financial year, allowed up to (Rs. 2500 or 100% of Tax whichever is less)
4. Income Tax Slabs for HUF/AOP/BOI and any other Artificial Juridical Person
Income Tax Slabs Tax Rate Health and Education Cess
Income up to Rs 2,50,000 No tax
Income from Rs 2,50,000 – Rs 5,00,000 5% 3% of Income Tax
Income from Rs 5,00,000 – 10,00,000 20% 3% of Income Tax
Income more than Rs 10,00,000 30% 3% of Income Tax
  • Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
  • Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.

HOW TO CALCULATE TAXABLE INCOME UNDER THE F.Y. 2017-18 WITH EXAMPLE

Mr. Pawan who is 45 years old and employed in private company., has the following details relating to his income and investments are as under:-
Basic pay Rs. 300000/-
Tuition Income Rs. 120000/-
House rent allowance Rs. 150000/-
Contribution by Mr. Pawan to Provident Fund Rs. 36000/-
Amount deposited in PPF account Rs. 50000/
House rent paid for residence in Chandigarh Rs. 60000/-
LIC premium paid for self/spouse/children Rs. 50000/-
Medical insurance premium paid for self  Rs. 15000/-
Interest received from Saving Bank Account Rs. 15000/-
 

CALCULATION OF TAXABLE INCOME  is as follows:

Income From Salary                                                                (Amount in Rs)
Basic Pay 300000
House Rent Allowance 150000
Less:Exempt (see notes) 30000 120000  420000
Income from other sources
Tuition Income 120000
Interest received from saving bank account 15000 135000
Gross Total Income  555000
Less:  Deduction under Chapter VI-A
Under Section 80C
Contribution to Provident Fund 36000
Deposit in PPF Account 50000
LIC Premium paid 50000 136000
Under Section 80D
Medical Insurance Premium Paid 15000
Under Section 80TTA
Interest from saving bank account 10000
Total Amount of Deduction 161000  161000
Taxable Income    394000

Notes:-

  1. Amount of HRA exempt is the least of following:-
    • Actual HRA received   1,50,000
    • Rent paid – 10% of salary i.e (60000-30000)=   30,000
    • 40% of salary for non metro cities and 50% for Metro Cities (he lives in Chandigarh i.e. non metro city so 40% of Salary)       1,20,000
  2. Medical Insurance Premium is allowed up to 25000 as deduction under section 80D for the F.Y. 2017-18
  3. Deduction under section 80TTA is allowed up to 10000 in respect of interest received from saving bank accounts for the F.Y. 2017-18
  4. A rebate of income tax is not allowed under section 87A since the taxable income in above case is more than 350000. The amount of rebate will be 2500 or actual income tax payable, whichever is less if the taxable income is up to 350000.
I hope this would have clarified your question 1 regarding income tax slabs. For any further query, you can reach me or send the comments.



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