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
- 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)