Tuesday, February 7, 2017

income tax slab rates for ay 2018-19


new income tax slab rates for ay 2018-19/fy 2017-18 for individual, senior citizen and super senior citizen

  • General Person earning INR. 2.5 lakh annually has been exempted from paying taxes, while those having income upto INR. 5 lakh will be charged income tax at 5 %  (earlier 10%).
  • Senior Citizen (60 - 79 years) earning INR.3 lakh annually has been exempted from paying taxes.
  • Super Senior (80 years above) earning INR.5 lakh annually has been exempted from paying taxes.
  • surcharge of 10% will be levied on people with annual income between INR. 50 lakh to INR. 1 crore.
  • surcharge of 15% will be levied on people with annual income above Rs 1 crore.

NOTE:
Rebate - maximum of Rs.2,500 from the tax payable would be admissible under section 87A of the Act to those individuals whose total income does not exceed Rs. 3,50,000 p.a.



IMPORTANT POINTS

Tax exemption on partial withdrawal from NPS (w.e.f. 01.04.2018)
  1. Section 10(12A) provides that payment from National Pension System (NPS) trust to an employeeon closure of his account or opting out shall be exempt upto 40% of total amount payable to him.
  2. Sub-section (2) of section 20 provided in Chapter VI of the Pension Fund Regulatory Development Authority Act, 2013, permits withdrawals, not exceeding twenty-five per cent of the contribution made by the subscriber, from the individual pension account subject to certain conditions specified by the regulations, such as purpose, frequency and limits.
  3. Such partial withdrawals are presently not exempted from tax under the Act.
  4. In order to provide further relief to the employee subscriber, clause (12B) is proposed to be inserted to provide exemption in respect of aforesaid partial ithdrawals, to the extent of 25% of the original contribution, made by the employee in accordance with the terms and conditions specified under Pension Fund egulatory Development Authority Act, 2013 and regulations made thereunder
Enhancement of limit of deduction under section 80CCD (w.e.f. 01.04.2018)
  1. Under the existing provisions of section 80CCD (1) of the Act, an individual, not under any employment, is allowed deduction in respect of amount deposited in a previous year in his account under a notified pension scheme provided the same does not exceed 10% of his gross total income.
  2. It has now been proposed to enhance the above limit from 10% to 20% of the gross total income.
  3. It is, however, to be noted that the amount of deduction allowable under sub section (1) of this section shall not exceed Rs.1.50 lacs.
Phase out of deduction under section 80CCG (w.e.f. 01.04.2018)
  1. Under the existing provisions of section 80CCG, deduction upto ` 25,000 is admissible to an individual investor who invests in specified listed equity shares or units of equity oriented fund, subject to conditions specified therein. The said deduction is available for 3 consecutive assessment years starting from the year of initial investment.
  2. It is now being proposed that deduction under section 80CCG shall be phased out and shall not be  available in respect of amount to be first invested during assessment year 2018-19 and onwards.
  3. Grand fathering provisions are, however, provided in respect of initial investment made during the assessment year 2017-18 or prior thereto.
Rationalization of rebate under section 87A (w.e.f. 01.04.2018)
  1. It is proposed that amount of rebate admissible under section 87A of the Act shall be reduced from Rs. 5,000 to Rs.2,500 and shall be available to a resident individual assessee having gross total income of upto Rs. 3.50 lacs (as against Rs.5 lacs earlier)


VAISH ASSOCIATES, ADVOCATES
NEW DELHI, MUMBAI, BENGALURU


Individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year

  • (1) where the total income does not exceed Rs. 3,00,000: Nil;
  • (2) where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,000 : 5 per cent. of the amount by which the total income exceeds Rs. 3,00,000;
  • (3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000: Rs. 10,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
  • (4) where the total income exceeds Rs. 10,00,000 : Rs. 1,10,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000

Individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year

  • (1) where the total income does not exceed Rs. 5,00,000: Nil
  • (2) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 : 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
  • (3) where the total income exceeds Rs. 10,00,000 : Rs. 1,00,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act,—

  • (a) having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent. of such income-tax; and
  • (b) having a total income exceeding one crore rupees, at the rate of fifteen per cent. of such income-tax:
Provided that in the case of persons mentioned above having total income exceeding,—
  • (a) fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees;
  • (b) one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
Co-operative society

  • (1) where the total income does not exceed Rs. 10,000 : 10 per cent. of the total income;
  • (2) where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000 : Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 10,000;
  • (3) where the total income exceeds Rs. 20,000 : Rs. 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 20,000.

Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 11A or section 112 of the Income-tax Act, shall, in the case of every co-operative society, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such incometax:

Provided that in the case of every co-operative society mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

In the case of every firm

On the whole of the total income: 30 %

Surcharge on income-tax
  • The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, in the case of every firm, having a total income exceeding one crore rupees, be increased by a surcharge for the purposes of the Union calculated at the rate of twelve per cent. of such income-tax:
  • Provided that in the case of every firm mentioned above having total income exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

In the case of a Company

  • (i) where its total turnover or the gross receipt in the previous year 2015-16 does not exceed fifty crore rupees: 25 per cent. of the total income;
  • (ii) other than that referred to in item (i) : 30 per cent. of the total income.

In the case of a company other than a domestic company

(a) royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1961 but before the 1st day of April, 1976:  
or 
(b) fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th day of February, 1964 but before the 1st day of April, 1976, 

and where such agreement has, in either case, been approved by the Central Government: 50%

(ii) on the balance, if any, of the total income : 40%

Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 of the Income-tax Act, shall, be increased by a surcharge for the purposes of the Union, calculated,

(i) in the case of every domestic company,
  • (a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of seven per cent. of such income-tax; and
  • (b) having a total income exceeding ten crore rupees, at the rate of twelve per cent. of such income-tax;
(ii) in the case of every company other than a domestic company,
  • (a) having a total income exceeding one crore rupees but not exceeding ten crore rupees, at the rate of two per cent. of such income-tax; and
  • (b) having a total income exceeding ten crore rupees, at the rate of five per cent. of such income-tax:
Provided that in the case of every company having a total income exceeding one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax  and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees:

Provided further that in the case of every company having a total income exceeding ten crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.


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