Budget 2017 – Gain and Loss for every Income Tax Slab

Budget 2017 presented recently had some benefits by way reduction in taxes in the first slab from 10% to 5%. In this post we bring to you the exact quantum of tax benefit you will get based on where you fall in the tax slab from  3lacs to 150Lacs. Please find below the table which lists out the benefit to you. The assumption in this calculation is that you are below 60 Years of age and you have fully used the tax deduction under section 80c. Below figures also take into account the additional surcharge amount of 10%. In case you are also claiming additional deduction under NPS, please reduce your taxable amount appropriately to arrive at the right figure.

Gross Total Income in Lakhs

Tax you have to pay in FY 2016-2017

Tax you have to pay in FY 2017-2018

Gain/Loss

3

5

5150

2575

2575

10

97850

84975

12875

15

236900

224025

12875

20

391400

378525

12875

25

545900

533025

12875

30

700400

687525

12875

35

854900

842025

12875

40

1009400

996525

12875

45

1163900

1151025

12875

50

1318400

1305525

12875

55

1472900

1606028

-133128

60

1627400

1775978

-148578

65

1781900

1945928

-164028

70

1936400

2115878

-179478

75

2090900

2285828

-194928

80

2245400

2455778

-210378

85

2399900

2625728

-225828

90

2554400

2795678

-241278

95

2708900

2965628

-256728

100

2863400

3135578

-272178

105

3270250

3455779

-185529

110

3648260

3633454

14806

115

3825935

3811129

14806

120

4003610

3988804

14806

125

4181285

4166479

14806

130

4358960

4344154

14806

135

4536635

4521829

14806

140

4714310

4699504

14806

145

4891985

4877179

14806

150

5069660

5054854

14806

Top 3 benefits related to Housing and Traders declared in the Budget -2017 are as follows:

  1. Changes in Capital Gain taxation for immovable properties:

(a) Holding period reduced for computation of long term capital gain from 3 years to 2 years

(b) Base year for counting the cost of property shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.

  1. Promoting Digital Economy:

(a). In the presumptive income tax for small traders, income to be taken as 6% of turnover which is received by digital or banking means. This will save tax up to 46% for traders of income up to 2Cr.

(b). Cash expenditure allowable to be reduced to Rs.10,000 from the existing Rs.20,000.

(c). Cash transaction of above Rs.3 lakh not to be permitted. The penalty of equal amount to be levied in case of breach.

  1. Three concessions in the scheme of Income Tax exemption for affordable housing:

(a) Area of 30 and 60 Sq.mtr. to be counted as carpet area and not built-up area;

(b) 30 Sq.mtr. only in 4 metropolitan city limits and 60 Sq.mtr. for the rest of the country;

(c)  Completion period extended from 3 years to 5 years.