Indian Finance Minister, Shri Arun Jaitley has tabled today, the Union General Budget 2016-17 in the Parliament. No changes have been made to the existing Income Tax slabs & rates. Below are the Income Tax Slab Rates for FY 2016-17 or AY 2017 -18.
(FY is Financial Year. AY is Assessment Year)
Latest Income Tax Slab Rates for FY 2016-17
The income tax slabs & rates are categorized as below;
- Individual resident aged below 60 years.
- Senior Citizen (Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year).
- Super Senior Citizen (Individual resident who is of the age of 80 years or more at any time during the previous year).
Budget 2016-17 & Important Tax Amended
- 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.
- 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.
- As per the Budget 2016 proposal, at the time of retirement, 40% of the EPF (Employees Provident Fund) lump sum withdrawal is tax-exempted, 60% of the corpus is taxable as per the applicable Income Tax Slab. To avoid this, the EPF member has to invest this 60% balance in an Annuity life insurance product. The Annuity income will be Tax-free. 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