Wednesday, 28 December 2016

Income Tax Assessment Tax Rates for the Financial Year 2016-17

Income Tax Assessment Tax Rates for the Financial Year 2016-17

Income Tax for the Financial Year 2016-17 & Assessment year 2017-18:

As per Indian Finance Act 2014 the following changes relating to determination of Income Tax payable by Salaried Employees and Pensioners:

  1. 1. Taxable Income eligible for full exemption from income tax increased from Rs. 2 lakh to Rs. 2.5 lakh
  2. 2. Additional deduction of Rs. 50,000 under Section 80 C, CCC, CCD(1): Deduction allowed under Section 80C, 80CCC, and Section 80 CCD(1) for savings/investments, premium for annuity / pension fund and employee contribution to NPS respectively has been increased to Rs. 1.5 lakh from Rs. 1 lakh (Section 80CCE Limit)
  3. 3. Income Tax exemption on Interest paid on housing loan under Section 24 of the Income Tax Act increased from Rs. 1.5 lakh to Rs. 2 lakh
  4. 4. In addition to above three new changes, Income Tax Rebate of Rs. 2000 for taxable income up to Rs. 5 lakh continues this year also under Section 87A of Income Tax Act
  5. 5. House rent receipt is compulsory when across Rs.36000/ per annum

"The Indian Finance Act 2013 provided relief in the form of rebate to individual taxpayers, resident in India, who are in lower income bracket, i. e. having total income not exceeding Rs 5,00,000/-. The amount of rebate is Rs 2000/- or the amount of tax payable, whichever is lower. This rebate is available for assessment year 2015-16 and subsequent assessment years."
Income Tax Assessment Table for the F.Y 2016-2017

Net Income Range Income-Tax Rates Surcharge Education Cess Secondary and Higher Education Cess
Up to Rs.2,50,000 Nil Nil Nil Nil
Rs. 2,50,000 to Rs. 5,00,000 10% of (total income minus Rs. 2,50,000) Nil 2% of income-tax 1% of income-tax
Rs. 5,00,000 to Rs. 10,00,000 Rs. 25,000 + 20% of (total income minus Rs. 5,00,000) Nil 2% of income-tax 1% of income-tax
Rs. 10,00,000 to Rs. 1,00,00,000 Rs. 1,25,000 + 30% of (total income minus Rs. 10,00,000) Nil 2% of income-tax 1% of income-tax
Above Rs.1,00,00,000 Rs. 28,25,000 + 30% of (total income minus Rs. 1,00,00,000) 10% of income-tax 2% of income-tax and surcharge 1% of income-tax and surcharge
#Income Tax Assessment 2016-17

#Income Tax Assessment for the FY 2016-17
#Income Tax Deduction Sections of Assessment for FY 2016-2017
#Income Tax Assessment Tax Rates for the Financial Year 2016-17
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