Income Tax 2017-18 (Assessment Year 2018-19) – Tax Structure, Exemption and Deductions,With Automated All in One TDS on Salary for F.Y.2017-18

Income Tax 2017-18 (Assessment Year 2018-19) – Income Tax Structure, Exemption and Deductions available to Personal Income Tax Payers

PART I: Income Tax Slab for Individual Tax Payers & HUF (Other than Senior Citizens)

Income Slab                                                                                                          Tax Rate
Income up to Rs 2,50,000*                                                                                                    No tax
Income from Rs 2,50,000 – Rs 5,00,000                                                                                5%
Income from Rs 5,00,000 – 10,00,000                                                                                   20%
Income more than Rs 10,00,000                                                                                             30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 2,50,000 for individual & HUF other than those covered in Part(II) or (III)

PART II: Income Tax Slab for Senior Citizens (60 Years Old Or More but Less than 80 Years Old)(Both Men & Women)

Income Slab                                                                                                                        Tax Rate
Income up to Rs 3,00,000*                                                                                                         No tax
Income from Rs 3,00,000 – Rs 5,00,000                                                                                      5%
Income from Rs 5,00,000 – 10,00,000                                                                                         20%
Income more than Rs 10,00,000                                                                                                   30%
Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore. Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-1 is up to Rs. 3,00,000 other than those covered in Part(I) or (III)

PART III: Income Tax Slab for Senior Citizens(80 Years Old Or More) (Both Men & Women)

Income Slab	Tax Rate
Income up to Rs 2,50,000*	No tax
Income up to Rs 5,00,000*	No tax
Income from Rs 5,00,000 – 10,00,000	20%
Income more than Rs 10,00,000	30%
Surcharge: 15% of income tax, where total income exceeds Rs.1 crore.
Cess: 3% on total of income tax + surcharge.
*Income tax exemption limit for FY 2017-18 is up to Rs. 5,00,000 other than those covered in Part(I) or (II)

There is also a tax rebate U/s 87A of up to Rs.2,500 for a taxable income up to Rs. 3.5 lakhs.

Deductions available under Chapter VI A (Section 80)

Section	Deduction on	FY 2017-18
Section 80C	Investment in PPF Employee’s share of PF contribution NSCs Life Insurance Premium payment Children’s Tuition Fee Principal Repayment of home loan Investment in Sukanya Samridhi Account ULIPS ELSS Sum paid to purchase deferred annuity Five year deposit scheme Senior Citizens savings scheme Subscription to notified securities/notified deposits scheme Contribution to notified Pension Fund set up by Mutual Fund or UTI. Subscription to Home Loan Account Scheme of the National Housing Bank Subscription to deposit scheme of a public sector or company engaged in providing housing finance Contribution to notified annuity Plan of LIC Subscription to equity shares/ debentures of an approved eligible issue Subscription to notified bonds of NABARD	Rs. 1,50,000
80CC	For amount deposited in annuity plan of LIC or any other insurer for pension from a fund referred to in Section 10(23AAB).	–
80CCD(1)	Employee’s contribution to NPS account (maximum up to Rs 1,50,000)	–
80CCD(2)	Employer’s contribution to NPS account	Maximum up to 10% of salary
80CCD(1B)	Additional contribution to NPS	Rs. 50,000
80TTA	Interest Income from Savings account	Maximum up to 10,000
80GG	For rent paid when HRA is not received from employer	Least of rent paid minus 10% of total income Rs. 5000/- per month 25% of total income
80E	Interest on education loan	Interest paid for a period of 8 years
80EE	Interest on home loan for first time home owners	Rs 50,000
80D	Medical Insurance – Self, spouse, children Medical Insurance – Parents more than 60 years old or (from FY 2015-16) uninsured parents more than 80 years old	Rs. 25,000 Rs. 30,000
80DD	Medical treatment for handicapped dependant or payment to specified scheme for maintenance of handicapped dependant Disability is 40% or more but less than 80% Disability is 80% or more	·           Rs. 75,000 Rs. 1,25,000
80DDB	Medical Expenditure on Self or Dependent Relative for diseases specified in Rule 11DD For less than 60 years old For more than 60 years old For more than 80 years old	Lower of Rs 40,000 or the amount actually paid Lower of Rs 60,000 or the amount actually paid Lower of Rs 80,000 or the amount actually paid
80U	Self suffering from disability: Individual suffering from a physical disability (including blindness) or mental retardation. Individual suffering from severe disability	·           Rs. 75,000 Rs. 1,25,000

Income or loss on House Property – Section 24 of Income Tax Act 2017 (Income Tax Exemption on interest paid on Housing Loan)

Consequent upon enactment of Finance Act 2017, the maximum limit of interest paid house property has been capped at Rs.2 lakh, whether or not the house is self occupied or rented out. Earlier if the house property is Rented out, there was no maximum limit in deducting interest paid on housing loan from the income of the tax payer.

 List of Exempted Income under Section 10 of Income Tax Act (Subject to certain conditions

1. Agriculture Income [Section 10(1)]
2. Perquisites and Allowances paid by Government to its Employees serving outside India [Section 10(7)]
3. Gratuity [Section 10(10)]
4. Commuted value of pension received [Section 10(I0A)]
5. Amount received as leave encasement on retirement [Section 10(10AA)]
6. Retrenchment compensation paid to workmen [Section 10(10B)]
7. Retirement Compensation from a Public Sector Company or any other Company [Section 10 (10C)]
8. Income by way of tax on perks [Section 10(10CC)]
9. Any sum received under a life insurance policy [Section 10(10D)]
10. Payment from Statutory Provident Fund [Section 10(11)]
11. Payment from Recognised Fund [Section 10(12)]
12. Payment from Superannuation Fund [Section 10(13)]
13. House Rent Allowance [Section 10(13A) Read with Rule 2A]
14. Scholarship [Section 10(16)]
15. Pension received by certain winners of gallantry awards [Section 10(18)]
16. Family pension received by family members of armed forces including para military forces [Section 10(19)]

Download Automated All in One TDS on Salary for Govt & Non-Govt employees for F.Y.2017-18 with new Tax Slab

 Feature of this Excel Utility :-

1) Automatic Calculation Income Tax as per new Tax Slab for F.Y.2017-18

2) Automated H.R.A. Calculation U/s 89(1) with Form 10E

3) Automated Arrears Relief Calculator with Form 10E up to F.Y.2017-18

4) Individual Salary Structure for both of Govt & Non-Govt employees Salary Pattern

5) Automated Individual Salary Sheet

6) Automated Form 16 Part A&B for F.Y.2017-18

7) Automated Form 16 Part B for F.Y.2017-18

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Download Automated All in One TDS on Salary for West Bengal Govt Employees for F.Y.2017-18

As per the Finance Budget 2017 the new Income Tax Slab introduce for the Financial Year 2017-18 and Ass Year 2018-19. Also some limit the amount of Income Tax Section has made by this Finance Budget. Major changes in the Income Tax for the F.Y.2017-18 for the salaried persons are given below with the Income Tax Slab for F.Y.2017-18.

The new Income Tax Slab for F.Y. 2017-18 is given below:-

Section 87 A Tax Rebate is now Rs. 2,500/- who's taxable income is up to Rs. 3.5 Lakh.

Section 80TTA the exemption from the Postal/Bank Savings amount up to Rs. 10,000/- is continue.

As per the new Income Tax Slab and amended Income Tax Section this Excel Based Software only for the West Govt Employees All in One TDS on Salary for F.Y.2017-18.

Main Feature of this Excel Utility :-

• Automated Income Tax Compute Sheet as per new Tax Slab F.Y.2017-18
• Inbuilt the Salary Structure as per the W.B.Govt Employees Salary Pattern
• Individual Salary Sheet
• Automated House Rent Exemption Calculation U/s 10(13A)
• Automated Individual Tax Computed Sheet
• Automated Individual Salary Sheet
• Automatic Form 16 Part B for F.Y.2017-18
• Automatic Form 16 Part A&B F.Y. 2017-18
• Automatic Convert the Amount to the in-words

Click here to Download the Automated All in One TDS on Salary for West Govt employees for Financial Year 2017-18 & A..Y 2018-19

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Main Changes in Income Tax Rule from April 2017, With Automated All in One TDS on Salary for both of Government & Non-Government Employees F.Y.2017-18

Due to Demonetization and government drive against black money, a lot of Income Tax rules are either amended or changed with change in financial bills. Here are the list of major Income tax rules which are changed and implemented by next financial years are :

Download Automated All in One TDS on Salary for Govt. &Non-Govt. Employees for F.Y.2017-18.[ This Excel Utility can prepare at a time Individual Tax Computed Sheet + Individual Salary Sheet + Individual Salary Structure + Automated H.R.A. Exemption Calculation U/s 10(13A) + Automated Arrears Relief Calculator with Form 10 E up to date version + Automated Form 16 Part A&B and Form 16 Part B for F.Y. 2017-18 ]

Change in Income Tax Slabs for F.Y.2017-18 as per Finance Budget 2017

Tax rebate under 87A changed. Rebate under Section 87A gets reduced from Rs. 5,000 to Rs. 2,500. No further rebate will be applicable for taxpayers having income above Rs. 3.5 lakh.

This means tax savings of up to Rs. 7,700 for those with a taxable income between Rs. 3 lakh and Rs. 5 lakh.  Where as tax saving odf Rs 12,900 for persons with taxable income between Rs. 5 lakh and Rs. 50 lakh.

Calculate &Download Income Tax Calculator ( All in One) FY 2017-18 in Excel For All StateGovernment Employees

2) Individual having income more than Rs 50 lacs to Rs one crore , A surcharge of 10% will be charged. Where as existing surcharge of 15 per cent will remain the same for individuals having income above Rs. 1 crore.

Download Automated All in One TDS on Salary for Non-Govt Employees for F.Y.2017-18. [ This Excel Utility can prepare at a time Tax Computed Sheet + Individual Salary Structure + Automated Form 12BA + Automated H.R.A. Exemption Calculation + Automated Form 16 Part A&B and Form 16 Part B with new Income Tax Slab for F.Y.2017-18

3) A simplified Income tax return form for person having only salary income. This return form will be utilized for individuals having a taxable income up to Rs. 5 lakh other than business income.

4) RGESS (Rajiv Gandhi Equity Saving Scheme) discontinue from Assessment Year 2018-19. No deduction will be allowed for investment in RGESS.

5) Introduction of Penalty for non filling Income Tax returns – Income Taxpayers who do not file their returns on time will have to shell out a penalty of up to Rs. 10,000 from Assessment Year 2018-19. However, if the total income of the person does not exceed Rs. 5 lakh, the fee payable under this section shall not exceed Rs. 1,000.

Download Automated All in One TDS on Salary for Central Govt Employees for F.Y.2017-18

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Save Income Tax for FY 2017-18 – Download Automated Arrears Relief Calculator U/s 89(1) With Form 10E from FY 2000-01 to 2017-18

1. The tax rate for income between Rs 2.5 lakh to Rs 5 lakhs has been reduced to 5% from 10%

2. 10% Surcharge introduced for Income between Rs 50 Lakhs to Rs 1 crore

3. Tax Rebate under Section 87A reduced to Rs 2,500 for income up to Rs 3.5 Lakhs

4. Tax exemption under RGESS (Rajiv Gandhi Equity Scheme) has been discontinued from FY 2017-18

Income Tax Slabs for FY 2017-18 (AY 2018-19)

5. Loss of House/Property capped at Rs 2 Lakh irrespective if the house is rented or self-occupied

6. NPS tax deduction for self-employed increased to 20% of gross income

Download Automated All in One TDS on Salary for Central Govt. & All State Govt. employees for F.Y.2017-18 & A.Y. 2018-19

1. Section 80C/80CCC/80CCD

These 3 are the most popular sections for tax saving and have a lot of options to save tax. The maximum exemption combining all the above sections is Rs 1.5 lakhs. 80CCC deals with the pension products while 80CCD includes Central Government Employee Pension Scheme.

You can choose from the following for tax saving investments:

1.                 Employee/ Voluntary Provident Fund (EPF/VPF)

2.                 PPF (Public Provident fund)

3.                 Sukanya Samriddhi Account

4.                 National Saving Certificate (NSC)

5.                 Senior Citizen’s Saving Scheme (SCSS)

6.                 5 years Tax Saving Fixed Deposit in banks/post offices

7.                 Life Insurance Premium

8.                 Pension Plans from Life Insurance or Mutual Funds

9.                 NPS

10.            Equity Linked Saving Scheme (ELSS – popularly known as Tax Saving Mutual Funds)

11.            Central Government Employee Pension Scheme

12.            Principal Payment on Home Loan

13.            Stamp Duty and registration of the House

14.            Tuition Fee for 2 children

Download Automated All in One TDS on Salary for West Bengal Govt. Employees for F.Y.2017-18 & A.Y.2018-19

2. Section 80CCD(1B) – Investment in NPS

Budget 2015 has allowed additional exemption of Rs 50,000 for investment in NPS. This is continued this year too. We have done a complete analysis which you can read by clicking the link below.

3. Payment of interest on Home Loan (Section 24/80EE)

The interest paid up to Rs 2 lakhs on home loan for self-occupied or rented home is exempted u/s 24. Earlier there was NO limit on interest deduction on rented property. Budget 2017 has changed this and now the tax exemption limit for interest paid on home loan is Rs 2 lakhs, irrespective of it being self-occupied or rented. However, for rented homes, any loss in excess of Rs 2 lakhs can be carried forward for up to 7 years.

Budget 2016 had provided additional exemption up to Rs 50,000 for payment of home loan interest for first time home buyers. To avail this benefit the value of the home should not exceed Rs 50 lakhs and loan should not be more than Rs 35 lakhs.

Download Automated Arrears Relief Calculator U/s 89(1) With Form 10E from FY 2000-01 to 2017-18

4. Payment of Interest on Education Loan (Section 80E)

The entire interest paid (without any upper limit) on education loan in a financial year is eligible for deduction u/s 80E. However, there is no deduction on principal paid for the Education Loan.

The loan should be for the education of self, spouse or children only and should be taken for pursuing full-time courses only. The loan has to be taken necessarily from approved charitable trust or a financial institution only.

The deduction is applicable for the year you start paying your interest and seven more years immediately after the initial year. So in all, you can claim education loan deduction for maximum eight years.

5. Medical insurance for Self and Parents (Section 80D)

Premium paid for Mediclaim/ Health Insurance for Self, Spouse, Children, and Parents qualify for deduction u/s 80D. You can claim a maximum deduction of Rs 25,000 in case you are below 60 years of age and Rs 30,000 above 60 years of age.

An additional deduction of Rs 25,000 can be claimed for buying health insurance for your parents (Rs 30,000 in the case of either parent being senior citizens). This deduction can be claimed irrespective of parents being dependent on you or not. However, this benefit is not available for buying health insurance for in-laws.

HUFs can also claim this deduction for premium paid for insuring the health of any member of the HUF.

To avail deduction, the premium should be paid in any mode other than cash. Budget 2013 had introduced deduction of Rs 5,000 (with in the Rs 25,000/30,000 limit) is also allowed for the preventive health checkup for Self, Spouse, Dependent Children, and Parents. It continued to this year too.

6. Treatment of Serious disease (Section 80DDB)

The cost incurred for treatment of certain disease for self and dependents gets a deduction for Income tax. For very senior citizens (more than 80 years of age) the deduction amount is up to Rs 80,000;  while for senior citizens (between 60 to 80 years of age) it Rs 60,000 and for all others, it's Rs 40,000. Dependent can be parents, spouse, children or siblings. They should be wholly dependent on you.

To claim the tax exemption you need a certificate from a specialist from Government Hospital as proof for the ailment and the treatment. In case the expenses have been reimbursed by the insurance companies or your employer, this deduction cannot be claimed. In case of partial reimbursement, the balance amount can be claimed as deduction

Diseases Covered:

1.                 Neurological Diseases

2.                 Parkinson’s Disease

3.                 Malignant Cancers

4.                 AIDS

5.                 Chronic Renal failure

6.                 Hemophilia

7.                 Thalassaemia

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7. Physically Disabled Tax payer (Section 80U)

Tax Payer can claim deduction u/s 80U in case he suffers from certain disabilities or diseases. The deduction is Rs 75,000 in case of normal disability (40% or more disability) and Rs 1.25 Lakh for severe disability (80% or more disability)

A certificate from neurologist or Civil Surgeon or Chief Medical Officer of Government Hospital would be required as proof for the ailment.

Disabilities Covered

1.                 Blindness and Vision problems

2.                 Leprosy-cured

3.                 Hearing impairment

4.                 Locomotor disability

5.                 Mental retardation or illness

6.                 Autism

7.                 Cerebral Palsy

8. Physically Disabled Dependent (Section 80DD)

In case you have dependent who is differently abled, you can claim a deduction for expenses on his maintenance and medical treatment up to Rs 75,000 or actual expenditure incurred, whichever is lesser. The limit is Rs 1.25 Lakh for severe disability conditions i.e. 80% or more of the disabilities. Dependent can be parents, spouse, children or siblings. Also, the dependent should not have claimed any deduction for self-disability u/s 80DDB.

To claim the tax benefit you would need disability certificate issued by the state or central government medical board.

You can also claim tax exemption on premiums paid for life insurance policy (in tax payers’ name) where the disabled person is the beneficiary. In case the disabled dependent expires before the tax payer, the policy amount is returned back and treated as income for the year and is fully taxable.

40% or more of the following Disability is considered for purpose of tax exemption

1.                 Blindness and Vision problems

2.                 Leprosy-cured

3.                 Hearing impairment

4.                 Locomotor disability

5.                 Mental retardation or illness

Download Automated HRA Exemption Calculator U/s 10(13A)

9. Donations to Charitable Institutions (Section 80G)

The government encourages us to donate to Charitable Organizations by providing the tax deduction for the same u/s 80G. Some donations are exempted for 100% of the amount donated while for others it's 50% of the donated amount. Also for most donations, the maximum exemption you can claim is limited to 10% of your gross annual income. Please note that only donations made by cash or cheque are eligible for deduction. Donations in kind like giving clothes, food, etc are not covered for tax exemption.

How to Claim Sec 80G Deduction?

1.                 A signed & stamped receipt issued by the Charitable Institution for your donation is must

2.                 The receipt should have the registration number issued by Income Tax Dept printed on it

3.                 Your name on the receipt should match with that on PAN Number

4.                 Also, the amount donated should be mentioned both in number and words

Download Automated All in One Value of Perquisite Calculator

10. House Rent in case HRA is not part of Salary (Section 80GG)

In case, you do not receive HRA (House Rent Allowance) as a salary component, you can still claim house rent deduction u/s 80GG. Tax Payer may be either salaried/pensioner or self-employed.

To avail this you need to satisfy the following conditions:

1.                 The rent paid should be more than10% of the income

2.                 No one in the family including spouse, minor children or self should own a house in the city you are living. If you own a house in different city, you have to consider rental income on the same

The House Rent deduction is lower of the 3 numbers:

1.                 Rs. 5,000 per month

2.                 25% of annual income

3.                  (Rent Paid – 10% of Annual Income)

You need to fill form no 10BA along with the tax return form

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