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.

2. 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.

3. 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.