Income Tax Slab For fy

One of the main expectations of Indians on this union budget for the FY 2017 – 2018 is the increase in the income tax slabs. The Union budget will be presented by the Hon’ble Finance Minister of the country, Mr. Arun Jaitley at the parliament on 1^st Feb, 2017. The present tax slabs will be increased as per financial experts and new tax slabs will be brought under effect by the Modi Govt. One of the major factors for this tax slab alteration is the demonetization which has resulted in heavy cash inflow in the market. The tax slabs is expected to be different for male citizen, female citizen, senior citizen as well as HUFs.

Tax slabs for males or Female below 60 years for FY

The Modi Govt. is going to alter the tax slabs of the males below the age of 60 years in the upcoming financial year i.e. 2017 – 2018. There is an expectation of tax slab increase of Rs. 1,50,000 for the next FY. This means those earning up to Rs. 4 lakh per annum will be exempted from paying income tax. However, the subsequent tax slabs might remain the same. Below is the tax slab illustration which may take place for the FY 2017 – 2018:

It means total 12500 rupee will be saved annually. Also there is a rebate of 2500 rupee which means upt0 3 lakhs no tax. This rebate is as part of section 87A by which if the earning is between 2.5 lakhs to 3.5 lakhs then you would get a discount of 2500. Earlier it was 5000 rupee. If we consider this as well the detailed tax slab would be as below

Update on taxation norms 2017-18

Arun Jaitley has concluded the budget speech and for the taxpayers of the nation, nothing appealing has happened. The only changes that have been included in the budget are mentioned below:

• 5% tax rate for those who have annual taxable income of INR 2.5 lakhs to INR 5 lakhs. The previous rate was 10%. This is the only major reduction announced and it actually covers the majority of the taxpayers of the nation.
• Those people who fall in INR 50 lakhs tax bracket will enjoy a tax rebate of INR 12,500. Though this is a relief, it is a tiny one and will impact only a limited section of the taxpayers in India.
• People who have income below INR 5 lakhs but fall under lowest tax bracket will no longer need to fill lengthy filing forms. For them, only a single-page form will be made available.
• People who have annual income of between INR 50 lakhs and INR 1 crore will now have to pay 10% surcharge.
• 15% surcharge for annual income of INR 1 crore and above has been retained.

Thus, no massive or ground breaking changes were made in tax rates or tax exemption slabs as was being anticipated before the budget speech. Some may look at it as a disappointment but we need to wait for expert analysis to understand the actual cause behind such decision with the backdrop of demonetization still lingering around.

Income tax slabs at present (FY 2016 – 17) for males below 60 years

• Annual income up to Rs. 2.5 lakh – Tax Nil.
• Annual income between Rs. 2.5 lakh to Rs. 5 lakh – 10 per cent of the exceeding Rs. 2.5 lakh.
• Annual income between Rs. 5 lakh to Rs. 10 lakh – 20 per cent of the exceeding Rs. 5 lakh.
• Annual income above Rs. 10 lakh – 30 per cent of the exceeding Rs. 10 lakh.

Tax slabs for females below the age of 60 years for FY 2017 – 2018

No changes made as part of Budget 2017 and all the females fall under same tax category as male under 60 years of age group

Existing tax slabs for senior citizen (Financial Year 2016 – 2017)

The IT Dept. of the country has put the senior citizen in different tax slab. Those who are aged between 60 to 80 years are considered under the senior citizen category. Citizen exceeding 80 years are termed as super senior citizen. Below are the existing tax slabs for the financial year 2016 – 2017 for senior citizen:

• Annual income up to Rs. 3 lakh – Tax Nil.
• Annual income between Rs. 3 lakh to Rs. 5 lakh – 10 per cent of the exceeding Rs. 2.5 lakh.
• Annual income between Rs. 5 lakh to Rs. 10 lakh – 20 per cent of the exceeding Rs. 5 lakh.
• Annual income above Rs. 10 lakh – 30 per cent of the exceeding Rs. 10 lakh.

Tax slabs to be changed for senior citizen for FY 2017 – 2018

This budget session of 2017 will also bring some important alteration in the tax policies of the senior citizen also. Those who age above 60 years but below 80 years may get addition tax benefits with increase in their tax slabs. Below are the expected tax slabs to be come under effect for the financial year 2017 – 2018:

Income tax slabs at present (FY 2016 – 17) for super senior citizen

Those who age above 80 years are called super senior citizens. Till now, the existing income tax slabs which were applicable for this category was as follows:

• Annual income up to Rs. 5 lakh – Tax Nil.
• Annual income between Rs. 5 lakh to Rs. 10 lakh – 20 per cent of the exceeding Rs. 5 lakh.
• Annual income above Rs. 10 lakh – 30 per cent of the exceeding Rs. 10 lakh.

Tax slabs for super senior citizen for FY 2017 – 2018

The Finance Ministry will also change the tax slabs of those citizens who belong to the super citizen category and age above 80 years. The limit of annual income for no tax will be raised from Rs. 5 lakh to Rs. 6 lakh, as per reports. Below are the illustrations of the upcoming tax slabs for the FY 2017 – 2018 for super senior citizen:

Taxation of Hindu Undivided Families (HUFs) for the FY 2017 – 2018

The HUFs which did not enjoy special tax exemptions till now and were considered for taxation as per normal citizen might soon get tax benefits in the next financial year 2017 – 2018.  As per the latest news no changes are made to HUF and HUF’s will fall under normal citizen group only.