Income Tax Slabs & Rates for Financial Year 2016-2017 (Assessment Year 2017-2018)
Additional tax benefit of Rs.5000/- under Section 87A, if Income is upto Rs.5,00,000/-.
3% Extra Surcharge on total Tax.
Section 80GG: Deduction amount under 80GG increased from Rs 24,000 per annum to Rs 60,000 per annum. Section 80GG is applicable for all the individuals who do not own a residential house & do not get HRA (House Rent Allowance).
Section 87A Rebate : Benefit of Rs 5,000 upto the income of Rs 5,00,000. If you are earning below Rs 5 lakh, you can save an additional Rs 3,000 in taxes. Tax rebate under Section 87A has been raised from Rs 2,000 to Rs 5,000. Effectively, this means now the basic exemption is of Rs 3 lakh.
Surcharge: 15 % Surcharge on income of more than 1 crore rupees yearly has been proposed, earlier it was 10 %.
National Pension System : 40% of corpus withdrawal at the time of retirement will be tax exempted.
Section 80EE – First time Home Buyers can claim an additional Tax deduction of up to Rs 50,000 on home loan interest payments u/s 80EE.
The home loan should have been sanctioned in FY 2016-17
Loan amount should be less than Rs 35 Lakh
The value of house should not be more than Rs 50 Lakh
INCOME TAX RATES FOR GENERAL CATEGORY (NON SENIOR CITIZENS)
INCOME TAX RATES FOR SENIOR CITIZENS (60 YEARS & ABOVE, BUT BELOW 80 YEARS):