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Income Tax Slabs FY 2017-18


Let us go through time tested tax and investment strategies for FY 2018-19 to achieve our desired results.

1. Investments for Hindu Undivided Family tax file in your kitty
2. Deposits in savings bank account
3. Plan for investments for your minor children  
5. Zero coupon bonds  
6. Tax free bonds
7. Postal instruments   
8. Continue investment in Public Provident Fund     
9. Mutual Fund investments for the family
10. Time to think on investments in NPS
11. New life insurance policies  
12. Rajiv Gandhi Equity Savings Scheme  
13.  Investment in gold & silver  
14. Chill down and relax for next 100 days


 Here are seven smart tips to help you save more and reduce taxes.

1. Salary Restructuring
2. Utilizing Section 80C
Section 80C offers a maximum deduction of up to Rs. 1,00,000. Utilize this section to the fullest by investing in any of the available investment options. A few of the options are as follows:

 

  •    Public Provident Fund
  •    Life Insurance Premium
  •    National Savings Certificate
  •    Equity Linked Savings Scheme
  •    5 year fixed deposits with banks and post office
  •    Tuition fees paid for children's education, up to a maximum of 2 children

 3. Options beyond 80C
If you have exhausted your limit of Rs. 1,00,000 under section 80C, here are a few more options:

  • Section 80D - Deduction of Rs. 25,000 for medical insurance of self, spouse and dependent children and Rs. 30,000 for medical insurance of parents above 65 years

 

  • Section 80G- Donations to specified funds or charitable institutions.

4. House Rent Allowance
5. Tax Saving from Home Loans
6. Leave Travel Allowance
7. Tax on Bonus

Tax Slab* for Financial Year 2015-16 (Assessment Year 16-17)

For Men Below 60 Years Of Age

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 - Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

For Women Below 60 Years Of Age

Income Tax SlabIncome Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 - Rs. 500,000 10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax SlabIncome Tax Rate
Income upto Rs. 3,00,000 Nil
Income between Rs. 3,00,001 - Rs. 500,000 10% of Income exceeding Rs. 3,00,000
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

For Senior Citizens (Age 80 years or more)

Income Tax SlabIncome Tax Rate
Income upto Rs. 5,00,000 Nil
Income between Rs. 500,001 - Rs. 10,00,000 20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000 30% of Income exceeding Rs. 10,00,000

Hindu Undivided Families (HUF)

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000 Nil
Rs.2,50,000 to Rs.5,00,000 10% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,000 20% Income exceeding Rs. 5,00,000
Over Rs.10,00,000 30% Income exceeding Rs. 10,00,000

Legal Entities Registered as Associations of Persons

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000 Nil
Rs.2,50,000 to Rs.5,00,000 10% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,000 20% Income exceeding Rs. 5,00,000
Over Rs.10,00,000 30% Income exceeding Rs. 10,00,000

Legal Entities Registered as Bodies of Individuals

Income Tax SlabIncome Tax Slab Rate
Up to Rs.2,50,000 Nil
Rs.2,50,000 to Rs.5,00,000 10% Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,000 20% Income exceeding Rs. 5,00,000
Over Rs.10,00,000 30% Income exceeding Rs. 10,00,000

Partnership Firms- Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%

Local Authorities-Local Authorities are to be taxed at the rate of 30%.

Domestic Companies-Domestic Companies are to be taxed at the rate of 30%

Co-operative Societies

Income Tax SlabIncome Tax Slab Rate
Up to Rs.10,000 10% Income
Rs.10,000 to Rs 20,000 20% Income exceeding Rs. 10,000
Over Rs. 20,000 30% Income exceeding Rs. 20,000

Also, Surcharge:

 a. 2% of the income tax amount (If income is greater than Rs.1,00,00,000/-)

 b. 5% of the income tax amount. Subject to marginal relief (If income is greater than Rs.10,00,00,000/-)

Education Cess: 2% extra (charged on the amount of income tax + surcharge being paid)

Secondary and Higher Education Cess: 1% extra (charged on the amount of income tax + surcharge being paid)

Income Tax Deductions and Exemptions

Income Tax Section

Gross Annual Salary

How Much Tax Can You Save?

Standard Life Plans

Sec. 80C

Across all income slabs

Upto Rs. 46,350/- saved on investment of Rs. 1,50,000/-

All our Life Insurance Plans

Sec. 80CCC

Across all income slabs

Upto Rs. 30,900/- saved on Investment of Rs.1,00,000/-

All our Pension Plans

Sec. 80 D*

Across all income slabs

Upto Rs. 10,815/- saved on investment of Rs.35,000/-

(Inclusive of Rs. 20,000/- towards health insurance of parents who are senior citizens)

Total Savings
Possible **

                            Rs. 57,165/-

 

  • Rs. 46,350/- under Sec. 80C and Sec. 80CCC and
  • Rs. 10,815/- under Sec. 80D
  • Above figures calculated for an individual with gross annual income exceeding Rs. 10,00,000/-

Sec. 10 (10)D

Under Sec. 10(10D), the benefits received by you are completely tax-free, subject to conditions specified there in

  • Applicable to premiums paid for all Health Insurance Plans, Critical Illness Benefit, Accelerated Sum Assured and Waiver of Premium Benefit.
    ** These calculations are illustrative and based on our understanding of current tax legislations.
  • The above-mentioned tax benefits are subject to changes in the tax laws. Please contact your tax consultant for an exact calculation of your tax liabilities.

* Calculations are based on highest tax benefits.

Note: These tax calculations are based on present tax legislations, which are
subject to change The aggregate deductions from income under Sections 80C, 80CCC and 80CCD (applicable in case of central government employees only) should not exceed Rs 1 lakh


Proposed income-tax slabs for FY 2017-2018 (assessment year 2018-19)

announced in Budget 2017

The income tax slabs & rates are categorized as below:
* Individual resident aged below 60 years.
* Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time  during the previous year) &.
 *Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year).

Surcharge:
    If the total income exceeds Rs 50 Lakhs but below Rs 1 crore, a surcharge of 10% will be levied.
    15% surcharge on income tax if the total income is over and above Rs 1 cr.

Rebate under Section 87A:

Tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakh has been proposed. While the taxation liability of people with income upto Rs 5 lakhs will be reduced to half, all the other categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500/- per tax assessee.

Tax deductions limits under sections like Section 80C, 80D for FY 2017-18 etc., have been kept unchanged.