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

Particulars AY2017-18 AY2018-19 Gross Income 5,00,000 5,00,000 Deductions under 80c 1,50,000 1,50,000 Net Income 3,50,000 3,50,000 Tax 10,000 5,000 Rebate under 87a 5,000 2,500 Tax Payable 5,000 2,500 Education Cess 150 75 Net tax Payable 5,150 2,575 Tax Saving 2,575

For Income of Rs 10 Lakh

Particulars AY2017-18 AY2018-19 Gross Income 10,00,000 10,00,000 Deductions under 80c 1,50,000 1,50,000 Net Income 8,50,000 8,50,000 Tax 95,000 82,500 Rebate under 87a 0 0 Tax Payable 95,000 82,500 Education Cess 2,850 2,475 Net tax Payable 97,850 84,975 Tax Saving 12,875

For Income of Rs 15 Lakh

Particulars AY2017-18 AY2018-19 Gross Income 15,00,000 15,00,000 Deductions under 80c 1,50,000 1,50,000 Net Income 13,50,000 13,50,000 Tax 2,30,000 2,17,000 Rebate under 87a 0 0 Tax Payable 2,30,000 2,17,000 Education Cess 6,900 6,525 Net tax Payable 2,36,900 2,24,025 Tax Saving 12,875

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