when official budget indicates that above 2.5 lakh there is 5% tax but many news sites stating that income upto 3.0 lakh is tax free . How? clarify this please
Vikas Sinha (Tax Consultant) (89 Points)
02 February 2017when official budget indicates that above 2.5 lakh there is 5% tax but many news sites stating that income upto 3.0 lakh is tax free . How? clarify this please
SHRMONEY
(solve legal finance problems - shrmoney@gmail.com)
(148 Points)
Replied 09 February 2017
YES IT IS THERE.
BUT THE EXEMPTION LIMITS HAVE BEEN KEPT UNCHANGED.
2.5 LACS FOR NORMAL PEOPLE AND THREE LACS FOR SENIOR CITIZENS.
HowToCalculate
(10 Points)
Replied 17 February 2017
| Originally posted by : Deepak Kumar | ||
 |
sir pls explain |  |
1) Suppose your total income is 3 lakh
2) Upto 2.5 lakh - No tax
3) Above 2.5 lakh - 5% of 50000 i.e 2500 income tax
4) As per Rule u/s 87A you will get rebate of 2500
5) Therefore you need not to pay tax of 2500
for detail read more at Income Tax Slab FY 2017-18 (AY 2017-18)
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