Budget 2016 has not been a good budget from a employee point of view as the expectation was that FM will increase the basic tax slab. But this doesn’t happen. It’s not like there are no changes happened for income tax point of view. In this article I will share about the Income Tax Slab Rates for FY 2016-17 (AY 2017-18) accordingly which you can plan your investment for the next financial year and save maximum tax on your hard earned money.
Income Tax Slab Rates for FY 2016-17 (AY 2017-18)
Check out the current Income Tax Slab for next FY 2016-17.
|Income Tax Slab for 2016 – 17||Tax Rate|
|Taxable income is less than Rs. 2,50,000|| Nil|
|Taxable income is more than Rs. 2,50,000 but less than Rs. 5,00,000||10% of the amount above and over 2,50,000.|
|Taxable income is more than Rs. 5,00,000 but less than Rs. 10,00,000||Rs. 25,000 + 20% of the amount by which the taxable income exceeds Rs. 5,00,000|
|Taxable income is more than Rs. 10,00,000||Rs. 1,25,000 + 30% of the amount by which the taxable income exceeds Rs. 10,00,000|
Besides this slab there are couple of significant changes happened in Budget 2016. Let’s check out them as well.
- The income tax rebate is increased by Rs 3000 for them who has taxable income under Rs 5 lakh. In the FY 2015-16, it was Rs 2000, now the tax rebate is Rs 5000.
- The tax deduction for the rent payment under HRA (section 80GG) is increased from 24,000 to 60,000.
- First time home buyer will get extra Rs 50,000 deduction for paying home loan interest. That means you can claim maximum Rs 2.5 lacs now.
- People with earning of Rs 1 crore have to pay extra surcharge of 15% compared to 12% last FY.
- No capital gain tax on Gold bond and earning from Gold monetization.
- NPS withdrawal tax exempted which is maximum 40%.
So, do you think you will be able to save income tax a little bit as per the changes made. Do you think Income Tax Slab Rates for FY 2016-17 is not going to help people in anyway or this is a good budget as per the current situation. Share your expert comment here and also how much happy you are with this budget 2016 from Income Tax Slab point of view at-least.