Wednesday, 28 December 2016

Income Tax Slab Rates and Deductions for the Financial Year 2016-17 (AY 2017-18)

Income Tax Slab Rates and Deductions for the Financial Year 2016-17 (AY 2017-18)
Income Tax Slab Rates and Deductions for the Financial Year 2016-17 (AY 2017-18). Income Tax assessment Slab Rate ,Deductions - FY 2016 -17 (AY 2017-18), Income tax slab rates and income tax deductions in India for Financial Year (FY) 2016-17 and Assessment Year (AY) 2017-18, Income Tax Deductions FY 2016-17 / AY 2017-18. Income Tax Rates in India for the Financial Year 2016-2017 and Assessment Year 2017-2018.


Income Tax Slab Rates and Deductions for the FY 2016-17 (AY 2017-18)


Income Tax Slabs for the Individual Male (Below 60 Years Age) for the Assessment Year 2017-2018:

Sl No. Income Tax Slab Income Tax Rate Payable
1. Rs. 0 to 250,000 No Income Tax
2. Rs. 250,001 to 500,000 10%
3. Rs. 500,001 to 1,000,000 20%
4. Rs. 1,000,001 and above 30%

Income Tax Slabs for the Individual Female (Below 60 Years Age) for the Assessment Year 2017-2018:
Sl No. Income Tax Slab Income Tax Rate Payable
1. Rs. 0 to 250,000 No Income Tax
2. Rs. 250,001 to 500,000 10%
3. Rs. 500,001 to 1,000,000 20%
4. Rs. 1,000,001 and above 30%

Income Tax Slabs for the Senior Citizen (60 to 80 Years Age) for the Assessment Year 2017-2018:

Sl No. Income Tax Slab Income Tax Rate Payable
1. Rs. 0 to 300,000 No Income Tax
2. Rs. 300,001 to 500,000 10%
3. Rs. 500,001 to 1,000,000 20%
4. Rs. 1,000,001 and above 30%

Income Tax Slabs for the Very Senior Citizen (Above 80 Years Age) for the Assessment Year 2017-2018:
Sl No. Income Tax Slab Income Tax Rate Payable
1. Rs. 0 to 500,000 No Income Tax
3. Rs. 500,001 to 1,000,000 20%
4. Rs. 1,000,001 and above 30%
# Tax Rates Chart - Income Tax Department Govt of india

Assessment Year 2017-18:
 a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 15% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 b) Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by education cess calculated at the rate of two per cent of such income-tax and surcharge.

 c) Secondary and Higher Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by secondary and higher education cess calculated at the rate of one per cent of such income-tax and surcharge.


 d) Rebate under Section 87A: The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 5,000, whichever is less.

As per Indian Finance Act 2014 the following changes relating to determination of Income Tax payable by Salaried Employees and Pensioners:
1. Taxable Income eligible for full exemption from income tax increased from Rs. 2 lakh to Rs. 2.5 lakh
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. 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. 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. House rent receipt is compulsory when across Rs.36000/ per annum

"The Indian Finance Act  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. 5000/- or the amount of tax payable, whichever is lower. This rebate is available for assessment year 2017-18 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 Caliculations 2016-17


 Updated Income Tax Software 2016-17 for AP &TS
Income Tax Exemption Guide, Deduction Sections for 2016-17 
Income Tax Slab Rates and Deductions for 2016-17

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