HOME ABOUT PERSONAL FINANCE FINANCIAL PLANNING INSURANCE LIFE INSURANCE HEALTH INSURANCE INVESTMENTS STOCKS MUTUAL FUNDS STOCK STRATEGIES IT RETURNS
TAX RATES / SLABS FOR FY 2017-18
HAPPY TO RECORD
www.plannprogress.com has crossed 300,000 PAGE VIEWS THANK ALL READERS , WELL WISHERS WHO HAVE HELPED US TO REACH THE MILESTONE BUDGET PROPOSALS FOR FY 2017-18 AFFECTING PERSONAL FINANCE , CLICK HERE FOR TAX PLANNING FOR FY 2018-19, CLICK HERE
The Article on " TAX PLANNING FOR FY 2017-18 CONTAINS 5 PARTS
PART I : MAJOR CHANGES IN TAX RULES FOR FY 2017-18 CLICK HERE PART 2 : TAX RATES / SLABS FOR FY 2017-18 READ THIS PART BELOW PART 3: TAX REBATES AND POPUALR TAX SAVING SCHEMES CLICK HERE PART 4: ESTIMATE YOUR INCOME TAX/ADVANCE TAX FOR FY 2017-18 CLICK HERE PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE Have you submitted Form 15G / 15 H if you are eligible ? Go to Section " All about TDS and Form 15G / 15 H and find out whether you are eligible to submit the forms to avoid Tax Deduction at source.If you are eligible Download the forms and submit to your bank immediately.As year end is approaching Banks will deduct tax on their interest payment before the year end if you have not submitted the forms.Act earliest to avoid TDS . KEEP YOUR FINANCIAL RECORDS PROPERLY Keep the records of all your financial transactions .Money borrowed from friends , Jewelry inherited / purchased , Gifts received ,wedding expenditures , cash remitted to your account etc can be questioned by IT officers and can be taxed up to 83 % of the value if IT Officer is not satisfied about your explanation . As per amended section 115BBE ,an assessing officer can invoke 60 % tax,15 % surcharge,3 % cess with an added penalty of 10 % . To avoid such hefty payment of tax ,keep records of your transactions to enable yourself to explain sources of funds . FOR INCOME TAX NEWS CLICK HEREADVT
|
Income Range |
General Citizens |
Persons above 60 years and below 80 years |
Persons above 80 years |
Up to Rs 2,50,000 |
NIL |
NIL |
NIL |
Rs 2,50,001 to Rs 3,00,000 |
5% |
NIL |
NIL |
Rs 3,00,001 to Rs 5,00,000 |
5% |
5% |
NIL |
Rs 5,00,001 to Rs 10,00,000 |
20% |
20% |
20% |
Above Rs 10,00,000 |
30% |
30% |
30% |
1. Surcharge of 10 % for income between Rs 50,00,000 to Rs 1 Crore and surcharge of 15 % on income above Rs 1 .00 crore
2. Education cess of 3% on Tax+ Surcharge
3. Tax rebate under Section 87A of IT Act up to Rs 2,500 for individuals with income less than Rs. 5 lakhs.
2. Education cess of 3% on Tax+ Surcharge
3. Tax rebate under Section 87A of IT Act up to Rs 2,500 for individuals with income less than Rs. 5 lakhs.
Click to set custom HTML
HAVE CAKE AND EAT IT TOO
Plan your Expenses and Credit Card use and Tweak your Bank Accounts to earn Extra Income
Plan your Expenses and Credit Card use and Tweak your Bank Accounts to earn Extra Income
Click to set custom HTML
Click to set custom HTML
TAX ON INTEREST INCOME
Sl No |
Plan |
Tax Value |
1 |
Savings Bank Accounts |
Tax free up to Rs 10,000 per year |
2 |
Tax on Fixed Deposits |
Fully taxable |
3 |
Recurring Deposits |
Fully taxable |
4 |
Tax Saving FDs |
Fully taxable |
5 |
National savings Certificates |
Fully taxable |
6 |
Kisan Vikas Patra |
Fully taxable |
7 |
Public Provident Fund |
Fully taxable |
8 |
Public Provident Fund |
Tax Free |
9 |
Tax Free Bonds |
Tax Free |
10 |
Sukanya Samruddhi Yojana |
Value |
TAX ON STOCK MARKET TRANSACTIONS
1. Profits made out of short term stock holding (for less than a year )to be added to the Income for tax purposes .
2. Short term loss on one stock can be offset by short term gain on another stock
3. Stocks held for more than 12 months are eligible for Long Term Capital Gain and hence profits are tax free
4. Short term losses can be carried forward for 8 years only if you declare the same in your Income Tax returns before due date .
5. Trading in derivatives attract Business tax .
6. Losses made out of stocks held for more than 12 months cannot be offset for Short term gains .
2. Short term loss on one stock can be offset by short term gain on another stock
3. Stocks held for more than 12 months are eligible for Long Term Capital Gain and hence profits are tax free
4. Short term losses can be carried forward for 8 years only if you declare the same in your Income Tax returns before due date .
5. Trading in derivatives attract Business tax .
6. Losses made out of stocks held for more than 12 months cannot be offset for Short term gains .
TAX ON MUTUAL FUNDS
1. For Tax purpose , a Mutual fund that invests more than 65 % in equities is classified as Equity Funds .
2.Diversified funds and arbitrage funds are also considered Equity Funds .
3.Profits on Equity funds held less than 12 months is considered as Short term Capital Gain and to be included in the taxable income .Short Term Capital Gain attracts a tax of 15 %
4. Profits on Equity Funds held for more than 12 months is considered as Long term Capital Gain and is exempted from tax .
5 .Profit on Debt Funds are considered Long Term , if held for more than 3 years .
6 .Tax on Long Term Capital gain on debt Funds is 20 % . However investors can get the benefit of indexation , which allows the original investment to be adjusted for inflation .
7. Short Term Debt Funds for debt funds sold within 3 years is to be added to the taxable income and will be taxed according to slab .8.Dividends on Mutual funds are tax free,as Mutual Fund Houses would have paid Dividend Distribution Tax ,currently at 28.84 % .
2.Diversified funds and arbitrage funds are also considered Equity Funds .
3.Profits on Equity funds held less than 12 months is considered as Short term Capital Gain and to be included in the taxable income .Short Term Capital Gain attracts a tax of 15 %
4. Profits on Equity Funds held for more than 12 months is considered as Long term Capital Gain and is exempted from tax .
5 .Profit on Debt Funds are considered Long Term , if held for more than 3 years .
6 .Tax on Long Term Capital gain on debt Funds is 20 % . However investors can get the benefit of indexation , which allows the original investment to be adjusted for inflation .
7. Short Term Debt Funds for debt funds sold within 3 years is to be added to the taxable income and will be taxed according to slab .8.Dividends on Mutual funds are tax free,as Mutual Fund Houses would have paid Dividend Distribution Tax ,currently at 28.84 % .
TAX ON INSURANCE POLICIES
Under 80 C of Income tax Act , life insurance premia paid on life indurance policies is one of the eligible instruments for total tax exemption up to Rs 1,50,000 only .However be cautious and confirm with policy issuers whether the contribution made to the particular policy is eligible for such exemption .The reason is there are riders for contributions made to be eligible for exemption .
As per Income tax law ,
quote ; "
Life Insurance premium is part of gross qualifying amount for the purpose of deduction under section 80 C . Payment of premium which is in excess of 10 percent ( if policy is issued on or after 1-4-2013 , 15 % in case of insurance on life of person with disability referred to in section 80U or suffering from disease or ailment specified in section 80 DDB/ rule 11DD ) of actual capital sum assured shall not be included in gross qualifying amount . The value of any premiums agreed to be returned or of any benefit by way of bonus or otherwise , over the sum actually assured , which is to be or may be received under the policy by any person , shall not be taken in to account for the purpose of calculating the actual capital sum assured .The limit of 10 per cent will be applicable only in the case of policies issued on or after 1-4-2012. In respect of policies issued prior to 1-4-2012, the old limit of 20 per cent of actual sum assured will be applicable.
With effect from 1-4-2013, 'actual capital sum assured' in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into account--
(i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. " unquote
For full page of Income tax website relevant to the above rule , CLICK HERE
Hence premia paid one time premium policies may not be eligible to qualify for exemption as the insured amount may not be ten times the premium .Further amount received under those policies may be treated as Taxable Income and tax calculated . Hence double check with insurance companies before purchasing as selling agents may not reveal you correctly .
As per Income tax law ,
quote ; "
Life Insurance premium is part of gross qualifying amount for the purpose of deduction under section 80 C . Payment of premium which is in excess of 10 percent ( if policy is issued on or after 1-4-2013 , 15 % in case of insurance on life of person with disability referred to in section 80U or suffering from disease or ailment specified in section 80 DDB/ rule 11DD ) of actual capital sum assured shall not be included in gross qualifying amount . The value of any premiums agreed to be returned or of any benefit by way of bonus or otherwise , over the sum actually assured , which is to be or may be received under the policy by any person , shall not be taken in to account for the purpose of calculating the actual capital sum assured .The limit of 10 per cent will be applicable only in the case of policies issued on or after 1-4-2012. In respect of policies issued prior to 1-4-2012, the old limit of 20 per cent of actual sum assured will be applicable.
With effect from 1-4-2013, 'actual capital sum assured' in relation to a life insurance policy shall mean the minimum amount assured under the policy on happening of the insured event at any time during the term of the policy, not taking into account--
(i) the value of any premium agreed to be returned; or
(ii) any benefit by way of bonus or otherwise over and above the sum actually assured, which is to be or may be received under the policy by any person. " unquote
For full page of Income tax website relevant to the above rule , CLICK HERE
Hence premia paid one time premium policies may not be eligible to qualify for exemption as the insured amount may not be ten times the premium .Further amount received under those policies may be treated as Taxable Income and tax calculated . Hence double check with insurance companies before purchasing as selling agents may not reveal you correctly .
ADVANCE PAYMENT OF TAX
Under Section 208 of Income-tax Act, every assessee is required to pay advance tax if the tax liability for the previous year exceeds ten thousand rupees. The Tax payable during the financial year itself is called Advance Tax . For individuals with salary as sole source of income ,TDS is to deducted by the employer during disbursal of salary and hence question of paying advance tax separately may not arise.
DUE DATE SCHEDULE FOR BOTH INDIVIDUALS AND CORPORATES
DUE DATE SCHEDULE FOR BOTH INDIVIDUALS AND CORPORATES
DUE DATE |
ADVANCE TAX PAYABLE |
Before 15th June 17 |
15% of advance tax |
Before 15th Sept 17 |
45% of advance tax |
Before 15th Dec 17 |
75% of advance tax |
Before 15th March2018 |
100 % of advance tax |
A Resident senior Citizen is exempted for paying advance tax ,if he has no income from business or profession . . He can discharge his tax liability by paying self assessment tax .
For calculating Advance tax Payable , CLICK HERE
For calculating Advance tax Payable , CLICK HERE
For Tax on Retirement Benefits CLICK HERE
The Article on " TAX PLANNING FOR FY 2017-18 CONTAINS 5 PARTS
PART I : MAJOR CHANGES IN TAX RULES FOR FY 2017-18 CLICK HERE
PART 2 : TAX RATES / SLABS FOR FY 2017-18 READ THE ABOVE PART
PART 3 : TAX REBATES AND POPULAR TAX SAVING SCHEMES CLICK HERE
PART 4 : ESTIMATE YOUR INCOME TAX / ADVANCE TAX FOR FY 2017-18 CLICK HERE
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
PART I : MAJOR CHANGES IN TAX RULES FOR FY 2017-18 CLICK HERE
PART 2 : TAX RATES / SLABS FOR FY 2017-18 READ THE ABOVE PART
PART 3 : TAX REBATES AND POPULAR TAX SAVING SCHEMES CLICK HERE
PART 4 : ESTIMATE YOUR INCOME TAX / ADVANCE TAX FOR FY 2017-18 CLICK HERE
PART 5 : TAX ON RETIREMENT BENEFITS CLICK HERE
FOR DETAILS ON AAYKAR SETHU ,
NEW MOBILE APPLICATION FROM INCOME TAX DEPT , CLICK HERE
NEW ARTICLES ON
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAR
e-INSURANCE Account ( eIA )
NEW MOBILE APPLICATION FROM INCOME TAX DEPT , CLICK HERE
NEW ARTICLES ON
SMALL FINANCE BANKS PAYMENT BANKS
UNIFIED PAYMENT INTERFACE BHARAT BILL PAYMENT SYSTEM
BHIM APP AADHAR
e-INSURANCE Account ( eIA )
FOR AUTHENTIC INFORMATION AND TIPS ON INCOME TAX MATTERS
Income tax dept of Govt of India has a very useful portal which churns out valuable guidance for tax payers . One can go through and understand the basics .
Link to the portal is http://india.gov.in/spotlight/filing-income-tax-returns#itr2
Further there are practical tips for computing tax which can be read and used . For example , the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .
Link to the portal is http://india.gov.in/spotlight/filing-income-tax-returns#itr2
Further there are practical tips for computing tax which can be read and used . For example , the link how to compute other income. One can make use of the portal in understanding law, making payment and also to file returns .