Budget 2016-17

#1

Can anyone update me with below tax update?

For salaried people what could be the;

  1. Tax slabs?
  2. Max saving through 80 CC?
  3. Home loan interest limit?
  4. Home loan repayment limit?
#2

1: The Finance Minister in his annual budget speech has not changed the income tax slabs for the financial year 2015-16. The slabs remain the same as the last financial year. The effective tax slabs are as follows:
• Income up to Rs. 2.5 Lakhs: Nil
• From 2.5 to 5 Lakhs: 10% of taxable income
• From 5 to 10 Lakhs: 20% of taxable income
• Above Rs. 10 Lakhs: 30% of taxable income
2: The maximum tax deduction under section80c is Rs. 1.5 Lakhs applicable from the last financial year 2014-15.
3: The Income tax Act of 1961 allows individuals and HUFs to claim tax deduction on repayment of principal amount on home loans under Section 80c of the income tax act.
4: The maximum tax deduction allowed under section 24 of the income tax act for self occupied property is limited to Rs. 2 Lakhs from the financial year 2013-14

#3

Thanks Dhanya…

#4

Hi Ashwin,

There have been revisions in tax slabs in 2017.
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Here are the highlights of the Union Budget in 2017.

 If your income is less than Rs. 5 lakhs, you only need to fill a one-page tax form.
 If your annual income is between Rs. 50 lakhs and Rs. 1 crore, you will need to pay a surcharge of 10%.
 Self-employed? You can get higher deductions for your contributions to the National Pension Scheme (NPS). The deduction can be raised to 20% from 10% earlier.
 The base used for computing indexation benefits in the case of Long Term Capital Gains (LTCG) has been changed. This will now be 1st April, 2001 and not 1st April, 1981. What’s more? Now, you need to hold your land or building for just two years to enjoy LTCG. Earlier, this was three years. Wait! Read on for some more good news. You can now reinvest your capital gains in notified, redeemable bonds other than those issued by NHAI and REC to get a capital gains exemption.
 Love the NPS? Your partial withdrawal from NPS will now be tax-exempt up to 25% of your contributions.
 Living in a rented house and paying more than Rs. 50,000 a month? You have the right to deduct 5% Tax Deducted at Source (TDS).
 If you love booking rail tickets online, here’s some good news. There will be no service tax on rail tickets booked online through the Indian Railway Catering and Tourism Corporation (IRCTC) website.
 Running a business with a turnover of less than Rs. 50 crores? Your tax rate has now been cut to 25% for the Financial Year (FY) 2015-16.
 Start-ups can avail a tax holiday for 3 years out of 7 years. Earlier, this was 3 out of 5 years.
 An Aadhaar enabled payment system will be launched soon. You just need your Aadhaar number and biometrics to make and receive payments. How cool is that? 14 banks have already been roped in for the Aadhaar payment service. More are expected to come on board soon.
 Have you tried out the Bharat Interface for Money (BHIM) app? Then, do it now. The Government is all set to introduce a referral bonus and cashback for BHIM users.
 Now, any political party in India cannot receive a cash donation of more than Rs. 2,000 from any source.
 The tax deduction for the interest paid for your Home Loan will be restricted to Rs. 2 lakhs for both self-occupied and rented homes. This is under Section 24. The tax deduction for principal repayment will remain at Rs. 1.5 lakhs under Section 80C of the Income Tax Act.
 The maximum deduction under 80C will remain at Rs. 1.5 lakhs.

Looking for a Home Loan? Click here.

Cheers,
BB Expert

#5

thank you