Income Tax Rates for Financial Year 2017-18 (Assessment Year 2018-19)
2017 – 2018 – A SUMMARY OF TAX IMPLICATION:
Finance minister Mr. Arun Jaitley in his Union General Budget 2017-18 has made certain changes in the tax structure for the Financial Year 2017-18 (Assessment year 2018-19)
Income tax slabs and rates are individuals are as under.
Maximising your Annual Income:
- Some common investments or spending that can be made under Section 80C of the Income Tax act upto a limit of 1.50 lakh are listed below.
Other Tax saving instruments beyond Section 80C.
Maximising your Lifetime Earnings:
Sale of house property after two years of purchase, capital gains will invite tax at reduced rate of 20% with eligibility for various exemptions on re-investment.
Set-Off Provisions for Capital Losses:
- Loss from transfer of long term capital asset can be set off against gain from transfer of any other long term capital asset only in the same year.
- Loss from transfer of short term capital asset can be set off against gain from transfer of any other capital asset only in the same year.
- Same conditions, as above, are applicable for any unutilised capital loss after absorption in the same year carried forward to the next eight years.
- To carry forward unutilised capital losses, IT return should be filed before 31st July.
Documents to be kept handy for QUERIES from tax department:
- Copy of tax return filed.
- Form-16 and Form-BA (annual withholding tax certificate from employer).
- Re-reimbursement proof and salary slips.
- Proof of all deductions and exemptions claimed in tax return.
- Statement of bank accounts with explanation to all debit and credit items.
- Credit card statements with link to the source of income to pay credit card bills. This income must be shown in tax return.
- Assets outside India and details of foreign trips.
- Assets and investments supporting documents including immovable property.
- Copy of rent / lease deed for rental income and municipal tax receipts.
- Interest certificate for home loan.
- Details of loans / gifts taken or received.
These are general guidelines and it is advisable to take professional help.