Income Tax Chart FY 2017-18
As per the budget FY17-18, there has been a relaxation for individuals’ whose taxable income is below 500000 p.a. There has been a 50% reduction in the tax rates applicable on this slab. This will have a tremendous relief impact on these individuals and the rate of savings as well as personal investments in the form of SIPs may see a rise.
Let us see the illustration of the tax calculation for an Individual whose taxable income is below 500000 p.a. after deduction of Sec 80C.
|After Budget||Before budget|
|Current Budget FY 17-18||FY 16-17 if income below 5 Lacs|
|Below 5 Lacs||Below 5 Lacs|
|Gross total Income||640000||Gross total Income||640000|
|Balance 240000||5%||12000||Balance 240000||10%||24000|
|Less Rebat 87A(which was earlier 5000)||2500||Less Rebat 87A(which was earlier 5000)||5000|
|Total Tax||9500||Total Tax||19000|
The same is illustrated below for an individual’s taxable income above 500000 p.a after deduction of Sec 80C.
|Current Budget FY 17-18||FY 16-17 if income above 5 Lacs|
|Above 5 Lacs||Above 5 Lacs|
|Gross total Income||750000||Gross total Income||750000|
|Balance 100000||20%||20000||Balance 100000||20%||20000|
|Less Rebat 87A||0||Less Rebat 87A||0|
|Total Tax||32500||Total Tax||45000|