Income Tax Slabs & Rates Financial Year 2017-18 (Assessment Year 2018-19)

Monday, February 20th, 2017 Amritesh 2 responses

Revision in Tax Rates was announced in the Budget 2017 for the next Financial Year. The chart above shows the latest Tax rates applicable for the FY 17-18 (Assessment Year 2018-19). Also refer to the points discussed below, explaining in details about the applicability of Cess and Surcharge on Taxable Income. The exemption limit for Senior Citizens has also been discussed. Please also read about the Tax Liability in the Financial Year 2017-18 in the link provided below. Income Tax Implication For The Financial Year 2017-18 *Tax Rebate of 10% (Rs 2500/- maximum) is available under Sec 87A to individuals whose Taxable Income is in the range of Rs 2,00,001-3,50,000/-. No Rebate is available on annual Income above Rs 3,50,000/-.…

New Income Declaration Scheme (IDS): Pradhan Mantri Garib Kalyan Yojana 2016

Wednesday, November 30th, 2016 Amritesh no responses

                                  Post Demonetization, Government has realized it needs to do more in terms of tax reform to eradicate the influx of Black Money in the economy. The new amendment bill introduced in the Parliament is aimed at plugging the loopholes in the Income Tax Act which may be exploited by the illicit to disclose their undeclared income. The disclosure scheme has been named as Garib115BBE and Kalyan Yojana 2016 which is an amendment to existing Income Tax Act, levies tax and penalties U/S 271 AAB. If undeclared Income is disclosed under the Scheme, the respective Individual will have to pay 30% tax on the income,…

Income from Other Sources: Inclusions and Tax Implications

Sunday, October 2nd, 2016 Amritesh no responses

  “Income from Other Sources” is any income which is not taxable under any other “Heads of Income”. Any income which does not specifically come under Income from Salary, Income Business or Profession, Income from House Property or Income from Capital Gain, will be taxed under “Income from Other Sources.   Income from House Property: Tax Implications   Income from Salaries: Tax Implications Following Incomes are taxed under “Income from Other Sources”: Dividends received from non Indian entities is chargeable to Tax. Dividend received from Domestic company is exempt from tax if it chargeable to dividend distribution tax (DDT) U/S 115-O. But as per the Finance Act,2016, Dividend in excess of Rs 10,00,000 received by any individual/HUF/Firm is chargeable to…

Income from House Property: Tax Implications

Wednesday, September 28th, 2016 Amritesh 2 responses

  Any Income earned in form of rent through a property like land, house, apartment, building, etc by the owner is chargeable to tax under “Income from House Property”. Income earned from such properties cannot be included under any other “heads” of Income. Income from Salaries: Tax Implications Income from Other Sources: Tax Implications   Types of Income falling under the heads “Income from House Property”   Income earned in form of rent by the owner is only chargeable to tax under the head “Income from House Property”. It includes any rental income arising out of land/building being let out for residence or shop, commercial purpose of which the tax payer is the legal owner.   Income not considered under…

Applicability of Tax on Retirement Benefits

Sunday, September 4th, 2016 Amritesh no responses

Employees receive monetary benefits at the time of retirement. Such benefits are taxable under the head, “Salaries” as it is profits paid in lieu of salary. Certain tax exemption wholly or partially is also granted on such benefits under the Income Tax Act, 1961. Tax on Retirement Benefits such as Annuity Pension and interest received on lump sum deposits is applicable as per the provisions of the Income Tax Act.  Tax exemption is available U/S 10 of the Income Tax Act. The exemption granted may be wholly or partially depending on the nature of benefit. These tax exemptions are provided on retirement benefits to reduce the financial burden. Furthermore, these financial benefits are for Individuals to sustain themselves and lead…

Income from Salaries: Tax Implications

Sunday, August 28th, 2016 Amritesh 2 responses

“Salary” is any remuneration paid by an employer to the employee in lieu of the service provided by him/her. Salary may include monetary and non monetary benefits which are taxable as per the Income Tax Act. Any payment made by the employer to employee in lieu of service is chargeable to tax. Salary has a much wider meaning for taxation purpose than it is normally understood. Income from Salaries comprises of various components and we will discuss the tax implications on the same.  Salary includes; Wages Fees, Commission, Perquisites or Profits in Lieu of Salary Advance Salary Leave Encashment Fund transferred from Unrecognized Provident Fund to Recognized Provident Fund Compensation due to variation in Service Contract Contribution to Recognized Provident…

Heads of Income for Tax Computation

Sunday, July 31st, 2016 Amritesh one response

  The various Heads of Income which is taxable under the Income Tax Act has been discussed below. This is a brief of the various Income Heads which are chargeable to tax, details pertaining to the each head will be discussed in my future posts. Income Tax Filing: Types of Income Tax Forms How to e-File Income Tax Return (ITR1- Sahaj)? Various Heads of Income Income from Salary:Any monetary or facility benefit extended by an Employer to Employee in lieu of service provided is called Salary. For computation of income from “Salary” it important to establish an “Employee “, “Employer” relationship between the provider and receiver.   Components of Salary Include: Basic Pay Dearness Allowance House Rent Allowance Allowance Conveyance Allowance Medical Allowance…

Tax Deductions Available Under Various Sections For Financial Year 2016-17

Sunday, May 1st, 2016 Amritesh one response

Individuals whose Annual Income is above Rs 2,50,000/ p.a- will be liable to pay Taxes on the earnings above the prescribed amount. However, Individuals earning below Rs 5,00,000/- p.a can avail Tax Credit up to Rs 5000/- on the Tax payable. Now we will look at the Tax Deductions available under the Income Tax Act and Sections applicable. We would also find out Investment and Savings options which could be availed. DEDUCTIONS U/S 80C   Deductions are available to the Individuals under Section 80C, 80CCD, 80CCC up to the extent Rs 1,50,000/-. These are now effectively clubbed under Section 80C with the aggregate deduction ceiling of Rs 1,50,000/-. SAVING/INVESTMENT SCHEMES RETURN ON INVESTMENT LOCK IN PERIOD Contribution to Employee’s Provident…

Impact Of Income Tax For The Financial Year 2016-17

Sunday, April 10th, 2016 Amritesh 2 responses

 INCOME TAX LIABILITY FOR THE FINANCIAL YEAR 2016-17 (For Individuals Below 60 years)  Income up to Rs 2,50,000/- is exempted from Tax. *Tax Rebate U/S 87A raised to Rs 5,000 from Rs 2,000 for Individuals with Net Income below Rs 5,00,000/-. Assumed Maximum Deduction availed under Various Sections:** Deduction is available on Investment up to Rs 1,50,000/-  U/S 80C.     Deduction is available on Investment up to Rs 50,000/- in National Pension  Scheme U/S 80 CCD (1b).     Deduction is also available on Health Insurance paid for self, spouse, dependent children up to Rs 25,000/- U/S 80 D.*** Education Cess of 3% is levied on Income Tax payable.**** Surcharge of 15% is applicable on Income over Rs 100,00,000/-.Note:Only Deductions directly applicable to Individuals…

Income Tax Slabs And Rates For The Financial Year 2016-17 (Assessment Year 2017-18)

Sunday, March 6th, 2016 Amritesh one response

INCOME SLABS (INDIVIDUALS BELOW 60 YRS) TAX RATES 1.) Taxable Income not exceeding Rs 2,50,000/- Nil 2.) Rs 2,50,001 but not exceeding Rs 5,00,000/- 10% of Amount above Rs 2,50,000/-* 3.) Rs 5,00,001-Rs 10,00,000/- Rs 25,000/- Plus 20% of the amount exceeding Rs 5,00,001/- 4.) Above Rs 10,00,001/- Rs 1,25,000/- Plus 30% of the amount exceeding Rs 10,00,001/-** NOTE: *A Tax Rebate of 10% (Rs 5000/- maximum) is available under Sec 87A to individuals whose Taxable Income is in the range of Rs 2,00,001-5,00,000/-. However if the taxable income exceeds Rs 5,00,000/- the rebate is withdrawn.   **Surcharge of 15% if the Total Income exceeds 1 Crore.   Education Cess of 3% is payable on Total Income Tax and on…