It’s high time you brush up your Income Tax 2017-18 facts

  • Created Date16 Feb, 2018
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Being in HR department and handling Payroll details, it becomes highly important to know everything about Income tax for the employees. If the Income declaration is not submitted yet, you need to get the declaration filled by each and every individual irrespective of their income fall into the taxable income or not. Here, we are sharing the details you need to brush up if you are yet to comply to the rules in terms of the tax filings and submissions.

Below is the IT slab for individual tax payers (less than 60 years) (Male & Female)

Income Slab

Tax Rate

Up to Rs. 2, 50, 000

No Tax

Rs. 2, 50, 000 to Rs. 5, 00, 000

5%

Rs. 5, 00, 000 to Rs. 10, 00, 000

20%

Above Rs. 10, 00, 000

30%

 

The Tax slabs above 60 years people may not be applicable at the corporate level. So, here we go ahead with the further details.

Surcharge:

10% on Income Tax if the total Income exceeds Rs 50 Lakhs upto Rs 1 crore.

15% on income tax if the total income is above Rs 1 crore

Cess:

  • 3% on total income tax payable including surcharge, if any

Rebate under Section 87A:

  • Tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakhs

 

Now, the most important comes about the income tax deduction for a salaried employee.

Income from Salary = Basic Salary + HRA + All the other allowances

Only some components of your annual salary such as medical reimbursements and conveyance allowance come under the tax exemption. If in case, the employees are receiving HRA from their employer but lives in a rented accommodation, then they are eligible for HRA exemption.

Conveyance allowance is provided to employees as part of their salary to meet their travel expenses from home to work and vice versa. In 2017-2018, the exemption limit on conveyance allowance has been raised to Rs 1,600 p.m or Rs 19,200 p.a from 2015-2016. For eg,  if an employee receives Rs 2200 as conveyance allowance every month, only Rs 1600 shall be exempted and remaining Rs 600 pm or Rs 7,200 p.a will be added to taxable income.

Know what documents you need to file Income tax returns.

Gather these documents to e-file your income tax returns in India.

  • ·         PAN number

For Salaried Employees

  • ·         Form-16 issued by your employer

Documents related to interest income

  • ·         Bank statement/passbook for interest on savings account.
  • ·         Interest income statement for fixed deposits.
  • ·         TDS certificate issued by banks and others.

Section 80 Investments

  • ·         Section 80C investment documents. Investment made under PPF, NSC, ULIPS, ELSS, LIC qualify for deductions under Section 80C.
  • Keep these documents at hand to claim the following expenses as deductions (as applicable):
  • ·         Your contribution to Provident Fund
  • ·         Your children’s school tuition fees
  • ·         Life insurance premium payment
  • ·         Stamp-duty and registration charges
  • ·         Principal repayment on your home loan
  • ·         Equity Linked Savings Scheme/Mutual funds investment

Other Investment Documents

  • ·         Interest paid on housing loan. Interest on housing loan is eligible for tax saving upto Rs 2,00,000. This is for a self-occupied house. For let out or deemed let out property, there is no limit of interest on housing loan eligible for tax saving till FY 2016-17. From FY 2017-18, Interest on housing loan is eligible for tax saving upto Rs 2,00,000 for let out property as well.
  • ·         Education loan interest payments.
  • ·         Stock trading statement. The stock trades that were made during the year may be taxed under Capital Gain.

Make sure you adhere to all the requirements by Income Tax department and in case there is any information or special details or case you want to share with us, feel free to do so in the comment section below.