Income Tax Rate FY 2016 – 17 (AY 2017-18)

What is Income Tax Slab?

Income tax is that percentage of income paid to the government by the taxpayers for the betterment of the public at large. This income is categorized into different groups on the basis of the amount of income. Each such group is known as a Tax Slab. Tax is charged at different rates on the range of income falling under different income tax slabs.

The Income Tax Act 1961 is the law that governs the provisions for our income tax.

The income tax rates are usually revised every year during the budget. Various deductions that are allowed to a taxpayer under Section 80C, Section 80D etc.

Income Tax Slab Rate

Following are the income tax slab rates and deductions for different categories of tax payers:

For Individuals Below 60 Years Of Age

Income LevelTax Rate
Rs. 2,50,000Nil
Rs. 2,50,001 – Rs. 500,00010%
Rs. 500,001 – Rs. 10,00,00020%
Above Rs. 10,00,00030%

For Senior Citizens (Age 60 years or more but less than 80 years)

Income LevelTax Rate
Upto Rs. 3,00,000Nil
Rs. 3,00,001 – Rs. 500,00010%
Rs. 500,001 – Rs. 10,00,00020%
Above Rs. 10,00,00030%

For Senior Citizens (Age 80 years or more)

Income LevelTax Rate
Upto Rs. 5,00,000Nil
Rs. 500,001 – Rs. 10,00,00020%
Above Rs. 10,00,00030%

Surcharge @ 15% of tax will be payable by individuals having total income exceeding Rs. 100,00,000.

 

Income Tax Deductions and Exemptions

Income Tax SectionGross Annual SalaryHow Much Tax Can You Save?HDFC Standard Life Plans
Sec. 80CAcross all income slabsUpto Rs. 46,350/-saved on investment of Rs. 1,50,000/-All our Life Insurance Plans
Buy Life Insurance and Save Tax
Sec. 80CCCAcross all income slabsUpto Rs.30,900/-saved on Investment of Rs.1,50,000/-All our Pension Plans
Buy Pension Plans and Save Tax
Sec. 80 D*Across all income slabsUpto Rs. 10,815/-saved on investment of Rs.35,000/-

(Inclusive of Rs. 20,000/- towards health insurance of parents who are senior citizens)

  • All our Health Insurance Plans
  • All the health insurance riders available with our Conventional Plans
  • Buy Health Insurance and Save Tax
Total Savings
Possible **
Rs. 57,165/-

 

  • Rs. 46,350/- under Sec. 80C and Sec. 80CCC and
  • Rs. 10,815/- under Sec. 80D
  • Above figures calculated for an individual with gross annual income exceeding Rs. 10,00,000/-
Sec. 10 (10)DUnder Sec. 10(10D), the benefits received by you are completely tax-free, subject to conditions specified therein

 

Disclaimer: – The articles are for information purposes only. Information presented is general information that does not take into account your individual circumstances, financial situation, or needs, nor does it present a personalized recommendation to you. You must consult a financial advisor who understands your specific circumstances and situation before taking an investment decision.

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