New Income Tax slab for 2017-2018: All you need to know before filing returns

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New Income Tax slab 2017-2018 come into effect: All you need to know before filing returns
New Income Tax slab 2017-2018 come into effect: All you need to know before filing returns

New Delhi : President Pranab Mukherjee on Saturday (April 1) gave his assent to the Finance Bill, 2017. With this the tax proposals by Arun Jaitley in the union budget 2017 get the status of law.

The Finance Bill 2017 was passed by Parliament on Thursday (March 31), with the Lok Sabha rejecting the amendments proposed by the Rajya Sabha.

The Finance Act provides for a Rs 2 lakh cap on cash transactions to check tax evasion and makes it mandatory to quote the Aadhaar number for filing income tax returns from July 1. 

Here are some facts and new tax slab based on the Finance Bill that you must know before filing your income tax returns.

# Income Tax rates down to 5% from previous 10% for individuals earning Rs 2.5- 5 lakhs.

# Zero tax liability on people whose income is up to Rs 3 lakhs per annum.

# Tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5 lakhs.

# All the other categories of tax payers in the subsequent slabs will get a uniform benefit of Rs 12,875/- per person.

# Simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income up to Rs 5 lakhs other than business income.

# Surcharge of 10 percent of tax payable on categories of individuals whose annual taxable income is between Rs 50 lakhs and Rs 1 crore.

For Income of Rs 5 Lakh

Gross Income5,00,0005,00,000
Deductions under 80c1,50,0001,50,000
Net Income3,50,0003,50,000
Rebate under 87a5,0002,500
Tax Payable5,0002,500
Education Cess15075
Net tax Payable5,1502,575
Tax Saving2,575 


For Income of Rs 10 Lakh

Gross Income10,00,00010,00,000
Deductions under 80c1,50,0001,50,000
Net Income8,50,0008,50,000
Rebate under 87a00
Tax Payable95,00082,500
Education Cess2,8502,475
Net tax Payable97,85084,975
Tax Saving12,875 


For Income of Rs 15 Lakh

Gross Income15,00,00015,00,000
Deductions under 80c1,50,0001,50,000
Net Income13,50,00013,50,000
Rebate under 87a00
Tax Payable2,30,0002,17,000
Education Cess6,9006,525
Net tax Payable2,36,9002,24,025
Tax Saving12,875 

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