INCOME TAX LIABILITY FOR THE FINANCIAL YEAR 2016-17 (For Individuals Below 60 years)
Income up to Rs 2,50,000/- is exempted from Tax.
*Tax Rebate U/S 87A raised to Rs 5,000 from Rs 2,000 for Individuals with Net Income below Rs 5,00,000/-.
Assumed Maximum Deduction availed under Various Sections:
** Deduction is available on Investment up to Rs 1,50,000/- U/S 80C.
Deduction is available on Investment up to Rs 50,000/- in National Pension Scheme U/S 80 CCD (1b).
Deduction is also available on Health Insurance paid for self, spouse, dependent children up to Rs 25,000/- U/S 80 D.
*** Education Cess of 3% is levied on Income Tax payable.
**** Surcharge of 15% is applicable on Income over Rs 100,00,000/-.
Note: Only Deductions directly applicable to Individuals have been taken into account. Some other deductions are also applicable which will be discussed in the next post.