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)
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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’…
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