INCOME TAX SOFTWARES FY 2017-18 AND AY 2017-18 UPDATED 25/11/2017, LIST OF IMPORTANT INCOME TAX DEDUCTIONS AND SLAB RATES

LIST OF IMPORTANT INCOME TAX  DEDUCTIONS FOR FY 2017-18 AND AY 2018-19 FULL DETAILS 

Section 80c

The maximum tax exemption limit under Section 80C has been retained as Rs 1.5 Lakh only. The various investment avenues or expenses that can be claimed as tax deductions under section 80c are as below;

• PPF (Public Provident Fund)
• EPF (Employees’ Provident Fund)
• Five year Bank or Post office Tax saving Deposits
• NSC (National Savings Certificates)
• ELSS Mutual Funds (Equity Linked Saving Schemes)
• Kid’s Tuition Fees
• SCSS (Post office Senior Citizen Savings Scheme)
• Principal repayment of Home Loan
• NPS (National Pension System)
• Life Insurance Premium (Read : ‘Best Term insurance plans‘)
• Sukanya Samriddhi Account Deposit Scheme

(Read : ‘Tax Saving Investment Options u/s 80c | In whose name can they be Invested?’)

Section 80CCC

Contribution to annuity plan of LIC (Life Insurance Corporation of India) or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. The maximum allowable Tax deduction under this section is Rs 1.5 Lakh.

Section 80CCD

Employee can contribute to Government notified Pension Schemes (like National Pension Scheme – NPS). The contributions can be upto 10% of the salary (salaried individuals) and Rs 50,000 additional tax benefit u/s 80CCD (1b) was proposed in Budget 2015.

As per Budget 2017-18, the self-employed (individual other than the salaried class) can now contribute up to 20% of their gross income and the same can be deducted from the taxable income under Section 80CCD (1) of the Income Tax Act, 1961, as against current 10%.

To claim this deduction, the employee has to contribute to Govt recognized Pension schemes like NPS. The 10% of salary limit is applicable for salaried individuals only and Gross income is applicable for non-salaried. The definition of Salary is only ‘Dearness Allowance.’ If your employer also contributes to Pension Scheme, the whole contribution amount (10% of salary)can be claimed as tax deduction under Section 80CCD (2).

Kindly note that the Total Deduction under section 80C, 80CCC and 80CCD(1) together cannot exceed Rs 1,50,000 for the financial year 2016-17. The additional tax deduction of Rs 50,000 u/s 80CCD (1b) is over and above this Rs 1.5 Lakh limit.

(Read : ‘NPS Scheme – Pros & Cons‘)

Contributions to ‘Atal Pension Yojana‘ are eligible for Tax Deduction under section 80CCD.

Section 80D

Deduction u/s 80D on health insurance premium is Rs 25,000. For Senior Citizens it is Rs 30,000. For very senior citizen above the age of 80 years who are not eligible to take health insurance, deduction is allowed for Rs 30,000 toward medical expenditure.

Preventive health checkup (Medical checkups) expenses to the extent of Rs 5,000/- per family can be claimed as tax deductions. Remember, this is not over and above the individual limits as explained above. (Family includes: Self, spouse, dependent children and parents).

Section 80DD

You can claim up to Rs 75,000 for spending on medical treatments of your dependents (spouse, parents, kids or siblings) who have 40% disability. The tax deduction limit of upto Rs 1.25 lakh in case of severe disability can be availed.

To claim this deduction, you have to submit Form no 10-IA.

Section 80DDB

An individual (less than 60 years of age) can claim upto Rs 40,000 for the treatment of specified critical ailments. This can also be claimed on behalf of the dependents. The tax deduction limit under this section for Senior Citizens is Rs 60,000 and for very Senior Citizens (above 80 years) the limit is Rs 80,000.

To claim Tax deductions under Section 80DDB, it is mandatory for an individual to obtain ‘Doctor Certificate’ or ‘Prescription’ from a specialist working in a Govt or Private hospital.

Income tax is that percentage of income paid to the government by the taxpayers for the betterment of the public at large. This income is categorized into different groups on the basis of the amount of income. Each such group is known as a Tax Slab. Tax is charged at different rates on the range of income falling under different income tax slabs.
The Income Tax Act 1961 is the law that governs the provisions for our income tax in India.
The income tax slab rates are usually revised every year during the budget. Various deductions that are allowed to a taxpayer under Section 80C, Section 80D etc.

Income Tax Slab Rate Post Budget 2017

The tax is calculated according to the income tax slabs announced by the government every year in the Budget. The finance minister has announced the changes in the tax slab structure in union budget for 2017.
Following are the income tax slab rates and deductions in India for different categories of tax payers:

Income Tax Slab Rate For Men below 60 Years of Age

Income Tax Slab	Income Tax Rate	Education Cess	Secondary and Higher Education Cess
Income upto Rs. 2,50,000	Nil	Nil	Nil
Income between Rs. 2,50,001 - Rs. 500,000	5% of Income exceeding Rs. 2,50,000	2% of income tax	1% of income tax
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000	2% of income tax	1% of income tax
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000	2% of income tax	1% of income tax

Income Tax Slab Rate For Women below 60 Years of Age

Income Tax Slab	Income Tax Rate	Education Cess	Secondary and Higher Education Cess
Income upto Rs. 2,50,000	Nil	Nil	Nil
Income between Rs. 2,50,001 - Rs. 500,000	5% of Income exceeding Rs. 2,50,000	2% of income tax	1% of income tax
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000	2% of income tax	1% of income tax
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000	2% of income tax	1% of income tax

Income Tax Slab Rate For Senior Citizens (Age 60 years or more but less than 80 years)

Income Tax Slab	Income Tax Rate	Education Cess	Secondary and Higher Education Cess
Income upto Rs. 3,00,000	Nil	Nil	Nil
Income between Rs. 3,00,001 - Rs. 500,000	5% of Income exceeding Rs. 3,00,000	2% of income tax	1% of income tax
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000	2% of income tax	1% of income tax
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000	2% of income tax	1% of income tax

Income Tax Slab Rate For Senior Citizens (Age 80 years or more)

Income Tax Slab	Income Tax Rate	Education Cess	Secondary and Higher Education Cess
Income upto Rs. 5,00,000	Nil	Nil	Nil
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000	2% of income tax	1% of income tax
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000	2% of income tax	1% of income tax

Income Tax Slab Rate Hindu Undivided Families (HUF)

Income Tax Slab	Income Tax Slab Rate
Up to Rs.2,50,000	Nil
Rs.2,50,000 to Rs.5,00,000	10%Income exceeding Rs. 2,50,000
Rs.5,00,000 to Rs.10,00,000	20%Income exceeding Rs. 5,00,000
Over Rs.10,00,000	30%Income exceeding Rs. 10,00,000

Also,

Surcharge:

2% of the income tax amount (If income is greater than Rs.1,00,00,000/-)

5% of the income tax amount. Subject to marginal relief (If income is greater than Rs.10,00,00,000/-)

Education Cess:2% extra (charged on the amount of income tax + surcharge being paid)

Secondary and Higher Education Cess:1% extra (charged on the amount of income tax + surcharge being paid)

Comparison Of Income Tax Slabs For FY 2017-18 and FY 2016-17

Income Tax Slab	Income Tax For FY 2017-18	Income Tax For FY 2016-17
Income upto Rs. 2,50,000	Nil	Nil
Income between Rs. 2,50,001 - Rs. 500,000	5% of Income exceeding Rs. 2,50,000	10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000	20% of Income exceeding Rs. 5,00,000	20% of Income exceeding Rs. 5,00,000
Income above Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000	30% of Income exceeding Rs. 10,00,000

courtesy OF HDFC Life


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