Indian Finance Minister, Shri Arun Jaitley has tabled today, the Union General Budget 2017-18 in the Parliament. Below are the latest Income Tax Slab Rates for FY 2017-18 or AY 2018 -19. (FY is Financial Year and AY is Assessment Year)
Latest Income Tax Slab Rates for FY 2017-18
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).
Budget 2017 & Income Tax
- 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.
- Other Taxation proposals :
- Holding period for Long term capital gain for all immovable properties has been reduced to 2 years from 3 year. The base year for calculation of Indexation is going to be 2001.
- Tax benefit on loan repayment of second house will be restricted to Rs 2 lakh per annum. Balance loss if any will be carried forward to be set off against house property income of subsequent 8 years.
- Transactions worth above Rs 3 Lakh can not be done in Cash mode. (Read : ‘How Income Tax Dept tracks High Value Transactions?‘)
- All Indian Political parties have to file their Income Tax Returns.
- Proposal to have one page Income Tax Return Forms for the category of individuals having taxable income up to Rs 5 lakhs other than business income.
Continue reading : ‘Budget 2017 & 15 Key Direct Tax Proposals that you need to be aware of!‘
(Image courtesy of Stuart Miles at FreeDigitalPhotos.net)
(Post published on 01-February-2017)
nice topic sir
Hi,
I have 3 rented out flats in the same city and showing rent from these properties in my income.
As I am staying at different location on rent, I am also claiming HRA.
Flat 1: No home loan
Flat 2: On going home loan and interest paid is 2.3 lacks app
Flat 3: On going home loan and interest paid is 2.2 lacks app
Could you please let me know if I can get exemption on total home loan interest of 4.5 lacks in FY 2017-2018.
Dear Kunal,
No. You can claim up to Rs 2 Lakh only and the remaining balance can be carried forward to next FY.
Kindly read :
List of tax exemptions for FY 2017-18
Income from house property & Tax implications
I was born on 1958 DEC 31, am I a senior citizen for IT calculation
Dear Ashutosh ji,
Under the Income-tax Act, 1961, a ‘Senior Citizen’ has been defined as an individual who attains the age of 60 years at any time during a financial year.
In your case, you are attaining 59 years in FY 2017-18. So, you can be considered as a senior citizen from next FY 2018-19 onwards.
Good Day Sir, I am working onboard foreign ships and earn salary in dollars. I have been in india for last 5 years due to some issues. Now I am going back to ship but my ship is delayed and I will be flying on 30th Sept early morning 04:00 Am, kindly advise that if I stay onboard upto 31-march 2018 , will I be able to complete my NRI status or not. Is there any provision to compensate for missing 1-2 days of NRI Time.
Kindly reply at earliest.
Tks/Brgds
Anurag
Dear Anurag.. You may kindly use this Residential status – calculator..
Hi Sreekanth,
Please have a look at below scenario & let me know whether it is legal or not.
I am guardian of my kid ppf account & investing Rs 1,50,000 in his account & also i am investing Rs 1,50,000 in my ppf account. For tax benefit i am showing PPF slips for my account & not that of my kid as the max limit for the tax benefit is Rs 1,50,000.
Now is it legal to invest total Rs 3,00,000 in two PPF account & get the 8% return (variable) & claim one for tax benefit?
Regards,
Anchit
Dear Anchit ..Kindly go through this article, can be useful to you.
MY TAKE HOME IS Rs.8136/-
WHAT WILL BE MY TAX CUT OFF ?
AND I HAVE NOT YET LINKED MY PAN CARD TO MY SALARY ACCOUNT!!
Dear RIDHI ..If this is the only source of income, no Tax is applicable in your case.
Suggest you to provide your PAN number to your banker.
Invested capital gain of 29 lakhs in a new property . Booked in Oct 2012, paid morethan 90% of the cost in Jan 2013 . Promised to complete in mid 2014 , it looks like 2017 end for completion. I have done registered agreement to sale in Jan 2013 . Since ownership is from time of agreement , can i claim long term capital gain by selling the new flat once i do the sale agreement ?
Dear Rajan,
Though there are conflicting judgments on this, I believe that once you book a property, it entitles you a ownership share, so I believe that you can treat the gains as LTCG..
Please guide me on what could be the implications, if any .
Dear Rajan,
Kindly read :
Capital Gains on Sale of property!
Tax implications on different Assets
Hi Srikanth
I received gratuity at the time of retirement even though i have not completed 5 years, as i joined them at the age 56 years. Am I eligible for exemption under section 10 (10)?
Regards
Srinivasan
Dear srinivasan ji ..You may kindly go through my article on ‘Gratuity’…
I observed your blog to be extremely educational. I am extraordinarily motivated by your posts and considering composing mine now. A debt of gratitude is in order for being a motivation to me as I was likewise attempting to compose writes, however, was not getting the proper sort.
Should interest accrued on ppf account be shown in IT return?
Dear Rakesh.. It is a tax-free income but can be shown under ‘Exempt income’ section of ITR.
How to download requisite software for java utility ITR Forms?
Dear Rakesh..Kindly visit e-Filing portal and click on ‘ITR Forms AY 2017-18’ under Downloads section.
Which is the best investment plan for investing my Gratuity Amount and which provides me TAX FREE Amount upon its Maturity.
Dear Mr Verma.. May I know your investment time-frame? Besides, tax-free income/gains, do you have any other investment objective(s)??
Ther is no special or extra consideration given for very senior citizens of over 80 years age although for income up to 5 Lakh has been given extra benefit.
Is this tax benefit of INR 12500 applicable for super senior citizens too as we can see that there is no such benefit directly given to tax payers but it occurs due to %age reduction in tax slab upto 500000? Exemption limit for super senior citizens is already 500000 so no tax is paid by them if there taxable income is upto 500000.
Dear Vikas..If their taxable income is beyond Rs 5 Lakh, yes..
.people not pay tax on base they earn but on what they want to pay…
It find that a same person previously pai 5000 tax today come and say file 5200 income tax return.
Lol…. 🙂
UP TO HOW MUCH AMOUNT AN INDIVIDUAL CAN INVEST IN LONG TERM MUTUAL FUNDS
AND WHAT ARE THE GOOD PERFORMING MUTUAL FUNDS AT PRESENT TO INVEST
Dear VIJAYA Kumar..There is no ceiling limit as such.
Kindly read:
Best Equity funds to invest in 2017.
How to pick right Mutual Fund Schemes?
Hi Vijay, You can invest as much as you in long term Mutual Funds based on your Financial Goal and your risk taking capacity.
For Further details….. Muthukumar 9840 93 0707.
looking at current budget , it will be good if you write/publish a article on how we can align MF portfolio.
Dear Ketan ji..Let’s not re-balance or re-align our long-term MF portfolios based on Market events.
Very disappointing for middle class especially salaried middle class as tax credit of Rs 5000 has been withdrawn
06.02.2017, Is Senior citizen get additional Rs 50,000.00 extra tax benifit in FY 2017-18
And there is one draconian provision in IT rules: Section 194DA! A huge loss will be incurred while encashing certain insurance policies. Is any change suggested in it?
1. The rebate for Senior citizens is Rs. 10000.00 and not Rs. 12500.00.
2. The FD rate of interest for Sr.Ctzns has been reduced by 2.75% within a span of 5 years in SBI, against corresponding price rise of different commodities. A double negative! The inflation rate may be lower, but not negative.
Very disappointing Income Tax Slab for AY 2018-19 for senior citizens.No change as per as 2017-18. Why the tax is 5% in 3.5 to 5 laks and 87A is reduced to 2500 from 5000. The same as previous year. Nothing & nothing for all .
Firstly. – the slab for senior citizens and super senior citizens should have been increased or alternatively the income tax rate should have been reduced.
Secondly. – the pension income should have been exempted from paying tax at least for the senior citizens and super senior citizens.
Dear Darshan,
Agree with you on both points.
(also as the interest rate scenario is in downward trend, Senior citizens are the most affected group..they could have done a better job for this category..they have announced only one relevant scheme ie 8% LIC Varishta Pension Yojana)
Worst Budget no rebait for tax payers..
why the exemption limit is not increased for senior citizen
it is matter of sadness. Jetly does not know the daily expenditure of kids for adjudication and
other demands.No words to say.FM does not know the hardship of middle class and senior citizens
because he never faced and never come across the horrible situation which we are facing now.All
Indians are requested to pray kind GOD to give Proper sense to BJP leaders including FM .
As compared to existing ppl with income between 5 & 10 lac will have to pay more i.e 20%. Not clear. Please confirm
Dear Gopalakrishnan,
The slabs for 20% & 30% remain same, and tax assessees who fall under these categories also get the benefit of 5% reduction.
Qther categories of tax payers in the subsequent slabs will also get a uniform benefit of Rs 12,500/- per tax assessee.Please clarify.
Regards
Rajesh
Dear Rajesh,
It means, the benefit of 5% reduction in tax rate is applicable for tax assessees who are in 20% & 30% also.
For ex: 5% reduction translates to Rs 12,500 ((Rs 5Lakh – Rs 2.5 Lakh ) * 5%)
Dear Sreekanth,
Its very SAD that FM did NOT touch the 2nd & 3rd slab. Nothing much to cheer about from this budget for these people. Its the third consecutive budget where there is no benefit for this group of people. It feels as if earning high income in INDIA is crime due to high taxes. The budget does NOT encourage saving (as evident by no increase in 80 C and 80 D exemptions).
regards
RAJ
Dear Raj,
I too believe that they have missed a golden opportunity to rationalize or re-structure the Tax slabs..
Hi Sreekanth,
12.8k tax reduction is significant for middleclass falling in 5 Lac to 50 Lac category (mostly 5 to 10 lac salary people). Remember someone earning 8-9 lac may have his taxable income below 5 lac also after all deductions like 80C, Transport, LoHP, etc.
I think more rationalization can only happen if they bring more tax evaders into the taxnet. Hopefully demonetization has given the govt enough data to track them down and probably next year we might see the 20% slab brought to 15% or so. No point in pushing current tax payers out of taxnet.
With general lower inflation, people are in much better position compared to say 5 years ago. So this is not dire by any yardstick.
Dear Pradeep,
Thank you for sharing your views.
May I know your insights on ‘how to bring more tax evaders’ in to the system??
are you sure , after 5% its going to be 20%?
Yes dear Sameer 🙂