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There will be several changes including tax slabs, ITR due dates etc. in Income Tax for FY 2017-18 / AY 2018-19. Take a look on those changes.

INCOME TAX SLAB RATE

According to Budget 2017-18 Income tax slab rate has been changed for FY 2017-18.

Earlier 10% tax rate has been reduced to 5% now, other rates remains same.

Normal Rates for Resident Individuals & HUFs


Taxable Income

Tax rate

Tax + Edu. cess @ 3%

Total

0 - to 250,000/-

Nil

Nil

Nil

250,000/- to 500,000/-

5%

12,500/- + 375/-

12,875/-

500,000/- to 10,00,000/-

20%

(12,500+100,000)/- +3,375/-

115,875/-

10,00,000 /- to above

30%

112,500/- + 30% of taxable income exceeds 10,00,000/-

Calculate with value


For Senior Citizens (Above 60 years)


Taxable Income

Tax rate

Tax + Edu. cess@ 3%

Total

0 - to 300,000/-

Nil

Nil

Nil

300,000/- to 500,000/-

5%

10,000/- + 300/-

10,300/-

500,000/- to 10,00,000/-

20%

(10,300 + 100,000)/- + 3,309/-

113,609/-

10,00,000 /- to above

30%

110,300/- + 30% of taxable income exceeds 10,00,000/-

Calculate with value


For Very Senior Citizens (Above 80 years)


Taxable Income

Tax rate

Tax + Edu. cess@ 3%

Total

0 to 500,000/-

Nil

Nil

Nil

500,000/- to 10,00,000/-

20%

100,000/- + 3,000/-

103,000/-

10,00,000 /- to above

30%

100,000/- + 30% of taxable income  exceeds 10,00,000/-

Calculate with value


REBATE U/S 87A

Earlier, if a taxpayer's taxable income was below 500,000/- he was eligible for a maximum rebate of 5,000/-. But in FY 2017-18/ AY 2018-19, if a taxpayer's taxable income is below 350,000/- he will get a maximum rebate of 2,500/-

DUE DATES & PENALTY

In FY 2017-18/ AY 2018-19, due dates for filing ITR remains same, i.e. 31st July. In case of audit u/s 44AB the due date is 30th September. But a new penal provision introduced for late filing of return.

A new sec.234F included in Income tax act,1961 according to this regard.

According to this section, there will be a penalty of

i) Rs. 5,000/-, if return submitted after 31st July but on or before 31st December.
ii) Rs. 10,000/- if return submitted 1st January to 31st March.
iii) Upto Rs. 1,000/- if return submitted after 31st July but the income of the taxpayer is below 5 Lakh.

This penal provisions are applicable for taxable returns i.e. refund/demand case. In case of nil taxable return, there will be no penalty if anyone missed the due date.

REVISE RETURNS

From FY 2017-18 / AY 2018-19, Revise returns can be filed till the end of that assessment year (Not one year from the end of assessment year). It means for FY 2017-18 / AY 2018-19, revise can be filed till 31st March 2019.

Both Original and Revise return can be revised.

SURCHARGE

There will be a surcharge of 10% if taxable income is between Rs. 50 Lakh to 1 Crore. There will be a surcharge of 15% if taxable income exceeds Rs. 1 Crore.

LOSS FROM HOUSE PROPERTY

Loss under the head 'Income from house property' is limited to 2 lakh only, previously there was no limit.

NO CHANGES 

Tax Audit u/s 44AB : The taxpayer is liable for Tax audit if annual gross turnover exceeds,

Rs. 1 Crore, in case of Business,
Rs. 50 Lakh, in case of Professionals.

Deductions under chapter VIA : The deductions under chapter VIA i.e. 80C, 80D, 80CCD, 80TTA etc. remains same as like previous year.


80C

80CCC

80CCD(1)

80ccd (1b)

80D

80EE

80G

80TTA

Upto Rs. 150,000/-

Upto Rs. 50,000/-

Up to Rs. 25,000/- & Rs. 30,000/- for Senior citizens

Upto Rs. 50,000/-

100% (generally in case of government funds) or 50% (generally in case of non-governmental funds)

Upto Rs.10,000/-

Life insurance premium, PPF investment, NSC accrued interest, ELSS Mutual funds, 5 years bank or post office saving deposits, SCSS

Kid's tution fees, Sukanya Samriddhi Account deposit scheme

Contribution to annuity plan of L.I.C.  or any other Life Insurance Company for receiving pension from the fund is considered for tax benefit. 

 Allowed to an Individual who makes deposits to his/her Pension account (like NPS). Maximum deduction allowed is 10% of salary (in case of taxpayer being an employee) or 10% of gross total income (in case of tax payer being self-employed).

Amount deposited by a taxpayer to their NPS account. Contributions to Atal Pension Yojana are also eligible.

Mediclaim

Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments. The below criteria has to be met for claiming tax deduction under section 80EE.

*The home loan should have been sanctioned in FY 2017-18.

*Loan amount should be less than Rs 35 Lakh.

*The value of the house should not be more than Rs 50 Lakh &

*The home buyer should not have any other existing residential house in his name.

Contributions made to certain relief funds and charitable institutions. This deduction can only be claimed when the contribution has been made via cheque or draft or in cash. But deduction is not allowed for donations made in cash exceeding Rs 10,000. In-kind contributions such as food material, clothes, medicines etc do not qualify for deduction under section 80G. 

Interest on deposits in SAVINGS BANK ACCOUNT , co-operative society or post office can be claimed under this section. Section 80TTA deduction is not available on interest income from fixed deposits.

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Category Income Tax, Other Articles by - Soumya Laha 



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