Handbook on Tax Planning Tools for F.Y

Handbook on Tax Planning Tools for F.Y. 2017-18 TaxIndiaUpdates.In [A Blog on Service Tax, Central Excise, GST, Income Tax and Personal Finance] Write us at info@taxindiaupdates.in Connect with us - ** For Private Circulation Only **

Introduction 1. Income Tax Rates and Slab for F.Y. 2017-18 [A.Y. 2018-19] 2. Advance Tax Liability under Income Tax 3. Tax Free Income for F.Y. 2017-18 [A.Y. 2018-19] 4. Tax Saving Instruments for F.Y. 2017-18 [A.Y. 2018-19] 5. Interest Rate notified for Small Saving Scheme w.e.f. 01-04-2017 1

Income Tax Rates and Slab for F.Y. 2017-18 [A. Y. 2018-19] Rates of Income-Tax in respect of income liable to tax for the F. Y. 2017-18 [A. Y. 2018-19] 1. No change in basic exemption limit. 2. The tax rate for individual, HUF, AOP, BOI or artificial jurisdictional person in the income bracket of Rs.2.5 lakhs (Rs.3 lakhs in case of individual of the age of 60 yrs or more but less than the age of 80 yrs) to Rs.5 lakhs reduced to 5% from the present rate of 10%. 3. Rebate of income tax u/s 87A for individual having total income not exceeding Rs.5 lakhs is reduced to Rs.3.5 lakhs and the amount of tax which was Rs.2,000/- (for AY 2017-18, earlier it was Rs.5,000/-) is to be allowed at Rs.2,500/-. 4. Surcharge @ 10% of tax payable is levied on individuals, HUF, AOP, BOI or artificial jurisdictional person whose total income is above Rs.50 lakhs but does not exceed Rs.1 crore. 5. In case of domestic companies, rate of income tax is reduced to 25% if total turnover or gross receipts of PY 2015-16 does not exceed Rs.50 crore. Benefit of lower tax is not available to other business entity. 6. The Taxation Law (Second Amendment) Act, 2016 has w.e.f. 01.04.2016 has levied surcharge @ 25% on income chargeable to tax u/s 115BBE. 2

Income Tax Slab Rates during the F. Y. 2017-18 [A. Y. 2018-19] (I) Individual, Hindu undivided family, association of persons, body of individuals, artificial juridical person (i) The rates of income-tax in the case of every individual (other than those mentioned in (ii) and (iii) below) or Hindu undivided family or every association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Act (not being a case to which any other Paragraph of Part III applies) are as under: Upto Rs. 2,50,000..Nil Rs. 2,50,001 to Rs. 5,00,000.5% Rs. 5,00,001 to Rs. 10,00,000.20% Above Rs. 10,00,000.30% (ii) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year, Upto Rs.3,00,000 Nil Rs. 3,00,001 to Rs. 5,00,000.5% Rs. 5,00,001 to Rs. 10,00,000.20% Above Rs. 10,00,000..30% 3

(iii) in the case of every individual, being a resident in India, who is of the age of eighty years or more at anytime during the previous year, Upto Rs.5,00,000 Nil Rs. 5,00,001 to Rs. 10,00,000.20% Above Rs. 10,00,000..30% Surcharge at the rate of, 10% of such income-tax in case of a person having a total income exceeding fifty lakh rupees but not exceeding one crore rupees; and (marginal relief allowed ) 15% of such income-tax in case of a person having a total income exceeding one crore rupees. (marginal relief allowed) (II). Co-operative Societies NO change in slab rate. Surcharge at the rate of 12% of income-tax if total income exceeds one crore rupees. (marginal relief allowed ) (III). Firms NO change in slab rate. Surcharge at the rate of 12% of income-tax if total income exceeds one crore rupees. (marginal relief allowed ) (IV). Local authorities NO change in slab rate. Surcharge at the rate of 12% of income-tax if total income exceeds one crore rupees. (marginal relief allowed ) 4

(v). Companies In case of domestic company, the rate of income-tax shall be 25% of the total income if the total turnover or gross receipts of the previous year 2015-16 does not exceed Rs.25 crore and in all other cases the rate of Income-tax shall be 30% of the total income. Surcharge at the rate of 7% shall continue to be levied in case of a domestic company if the total income of the domestic company exceeds Rs.1 crore but does not exceed Rs.10 crore. Surcharge at the rate of 12% shall continue to be levied if the total income of the domestic company exceeds Rs.10 crore. In case of companies other than domestic companies, the existing surcharge of 2% shall continue to be levied if the total income exceeds Rs.1 crore but does not exceed Rs.10 crore. Surcharge at the rate of 5% shall continue to be levied if the total income of the company other than domestic company exceeds Rs.10 crore. (marginal relief allowed ) In other cases (including sections 115-O, 115QA, 115R, 115TA or 115TD), the surcharge shall be levied at the rate of 12%. For financial year 2017-18, additional surcharge called the Education Cess on income-tax and Secondary and Higher Education Cess on income-tax shall continue to be levied at the rate of 2% and 1% respectively, on the amount of tax computed, inclusive of surcharge (wherever applicable), in all cases. No marginal relief shall be available in respect of such Cesses. 5

Advance Tax Liability for the F.Y. 2017-18 [A.Y. 2018-19] The Finance Act 2017 (Budget 2017) has not bring any change in Advance Tax provisions. Therefore the Advance Tax provisions related to A.Y. 2017-18 will continue applicable on A. Y. 2018-19: (a) Section 211(1) was amended by Finance Act 2016 to provide that advance tax will be paid in four installments of 15%, 45%, 75% and 100% of tax payable on the current income by 15 th June, 15 th September, 15 th December and 15 th March, respectively in case of all assesses. Earlier upto AY 2016-17 the assessee other than corporate assessee paid Advance Tax in three Installment. Now all assessee except assessee covered u/s 44AD is treated at par for Advance Tax provisions. (b) Assessees covered u/s 44AD are to pay advance tax of the whole amount in one instalment on or before the 15th March of the financial year consequent upon raising of the turnover limit from Rs.1 crore to Rs. 2 crore. Based on above amendments the advance tax related provision under income tax law is as under: Advance tax (Section 208, 209 & 211) Advance tax is payable on all income during the financial year in every case where the amount of such tax payable by an assessee during that year is Rs. 10,000 or more. Following is chart showing Advance Tax Liability for the A.Y. 2018-19: 6

Advance Tax Liability for All Assessee (other than covered under section 44AD of the I.T. Act 1961) Due Date Installment Payable On or before 15 th Jun, 2017 Not less than 15% of advance tax. Not less than 45% of advance tax as On or before 15 th Sep, 2017 reduced by the amount paid in the earlier installment. Not less than 75% of advance tax as On or before 15 Th Dec, 2017 reduced by the amount paid in the earlier installments. The whole amount (100%) of advance On or before 15 Th Mar, 2018 tax as reduced by the amount paid in the earlier installments. Advance Tax Liability for Assessee covered under section 44AD of the I.T. Act 1961 Due Date Installment Payable On or before 15 th Jun, 2017 On or before 15 th Sep, 2017 On or before 15 Th Dec, 2017 The whole amount (100%) of advance tax On or before 15 Th Mar, 2018 as reduced by the amount paid in the earlier installments. Note: 1. Resident individuals who are over 60 years of age and do not have income chargeable under the head Profits and Gains of Business or Profession are not required to pay advance tax. 2. Any amount paid by way of advance tax on or before 31st March shall also be treated as advance tax paid during financial year ending on that day 3. Deduction under Chapter VIA are allowable while computing liability of advance tax. 4. TDS is to be reduced from total tax liability of assessee and then specified percentage be calculated of advance tax. 7

Tax Free Income for F.Y 2017-18 [A.Y. 2018-19] 1. Agriculture Income [Section 10(1)] 2. Any sum received by a Co-parcener from Hindu Undivided Family (H.U.F.) [Section 10(2)] 3. Share of Income from the Firm [Section 10(2A)] 4. Interest received by a Non-Resident from prescribed Securities [Section 10(4)(i)] 6. Interest received by Non-Resident on Non-Resident (External) Account [Section 10(4)(ii)] 7. Interest paid to a person of Indian Origin and who is Non- Resident [Section 10(4 B)] 8. Travel Concession to an Indian Citizen Employee [Section 10(5)] 9. Remuneration received by an individual who is not a citizen of India [Section 10(6)] 10. Tax paid by Government or Indian concern on Income of a Foreign Company [Section 10(6A), (6B), (6BB) and (6C)] 11. Perquisites and Allowances paid by Government to its Employees serving outside India [Section 10(7)] 12. Employees of Foreign Countries working in India under Cooperative Technical Assistance Programme [Section 10(8)] 13. Income of a non resident Consultant [Section 10(8A)] 8

14. Income of any member of the family of individuals working in India under co-operative technical assistance programmes [Section 10(9)] 15. Gratuity [Section 10(10)] 16. Commuted value of pension received [Section 10(I0A)] 17. Amount received as leave encashment on retirement [Section 10(10AA)] 18. Retrenchment compensation paid to workmen [Section 10(10B)] 19. Withdrawal upto 25% of contribution made by and employee from NPS (12B) 20. Payment received under Bhopal Gas Leak Disaster (Processing of Claims) Act 1985 [Section 10 (10BB)] 21. Compensation received in case of any disaster [Section 10(10BC)] 22. Retirement Compensation from a Public Sector Company or any other Company [Section 10 (10C)] 23. Income by way of tax on perks [Section 10(10CC)] 24. Any sum received under a life insurance policy [Section 10(10D)] 25. Payment from Statutory Provident Fund [Section 10(11)] 26. Payment from Recognised Fund [Section 10(12)] 27. Payment from Superannuation Fund [Section 10(13)] 9

28. House Rent Allowance [Section 10(13A) Read with Rule 2A] 29. Any Allowance given for meeting Business Expenditure [Section 10(14)] 30. Interest Incomes [Section 10(15)] 31. Lease rental income of a foreign government or foreign enterprise from leasing of aircraft/aircraft engine to an Indian company [Section 10(15A)] 32. Scholarship [Section 10(16)] 33. Allowance of M.P./M.L.A. or M.L.C. [Section 10(17)] 34. Awards Instituted by Government [Section 10(17A)] 35. Pension received by certain winners of gallantry awards [Section 10(18)] 36. Family pension received by family members of armed forces including para military forces [Section 10(19)] 37. Income from one palace of a former ruler [Section 10(19A)] 38. Income of a local authority [Section 10(20)] 39. Income of scientific research association [Section 10(21)] 40. Income of a News Agency [Section 10(22B)] 41. Income of some Professional Institutions [Section 10(23A)] 42. Exemption of Income Received by Regimental Fund [Section 23AA] 10

43. Income of a Fund set-up for the welfare of employees or their dependents [Section 10(23AAA)] 44. Income of a pension fund set up by LIC or other insurer [Section 10(23MB)] 45. Income of Institutions established for development of Khadi and Village Industries [Section 10(23B)] 46. Income of State Level Khadi and Village Industries Board [Section 10(23BB)] 47. Income of certain Authorities set up to manage Religious and Charitable Institutions [Section 10(23BBA)] 48. Income of European Economic Community [Section 10(23BBB)] 49. Income of a SAARC Fund for regional projects [Section 10(23BBC)] 50. Any income of Insurance Regulatory and Development Authority [Section 10(23BBE)] 51. Income of Prasar Bharti [Section 10(23BBH)] [Inserted by the Finance Act 2012, w.e.f. 2013-14] 52. Any income received by a person on behalf of following Funds [Section 10(23C)] 53. Income of Mutual Fund [Section 10(23D)] 54. Exemption of income of a securitisation trust [Section 10(23DA) 55. Income of Investor Protection Fund [Section 10(23EA)] 11

56. Income of the Credit Guarantee Trust for Small Industries [Section 10(23EB)] 57. Exemption of income of investor protection fund of depository [Section 10(23ED)] 58. Exemption for Certain Incomes of a Venture Capital Company or Venture Capital Fund from Certain Specified Business or Industries [Section 10 (23FB)] 59. Income of Registered Trade Unions [Section 10(24)] 60. Income of Provident and Superannuation Funds [Section 10(25)] 61. Income of Employee s State Insurance Fund [Section 10 (25A)] 62. Income of Schedule Tribe Members [Section 10(26) and 10(26A)] 63. Income of Sikkimese individual [Section 10(26AAN] (With retrospective effect from 1-4-1990) 64. Regulating the marketing of agricultural produce [Section 10[26AAB] 65. Income of a corporation set-up for promoting the interests of Scheduled Castes, Scheduled Tribes or Backward Classes [Section 1 0(26B)] 66. Income of a corporation set-up to protect the interests of Minorities [Section 10(26BB)] 67. Any income of a corporation for ex-servicemen [Section 10(26BBB)] 12

68. Income of cooperative society looking after the interests of Scheduled Castes or Scheduled Tribes or Both [Section 10(27)] 69. Any income accruing or arising to Commodity Boards etc. [Section 10(29A)] 70. Amount received as subsidy from or through the Tea Board [Section 10(30)] 71. Amount received as subsidy from or through the concerned Board [Section 10(31)] 72. Income of child clubbed uls 64 (IA) [Section 10(32)] 73. Income from transfer of capital assets of UTI [Section 10(33)] 74. Income by way of dividend from Indian company [Section 10(34)] 75. Exemption of income to a shareholder on buyback of shares of unlisted company [Section 10 (34A) [w.e.f. A.Y. 2014-15] 76. Income from units of UTI and other mutual funds [Section 10(35)] 77. Exemption of income from securitisation trust [Section 10(35A)] 78. Capital Gain on compulsory acquisition of urban Agricultural Land [Section 10(37)] 79. Long Term Capital Gain on transfer of shares and securities covered under Security Transaction Tax (STT) [Section 10(38)] 80. Income from international Sporting event [Section 10(39)] 13

81. Income received as grant by a subsidiary company [Section 10(40)] 82. Income from transfer of asset of an undertaking engaged in the business of generation, transmission or distribution of power [Section 10(41)] 83. Income of a body or authority set up by two countries [Section 10(42)] 84. Reverse Mortgage [Sec. 10(43)] 85. New Pension System Trust [Sec. 10(44)] 86. Exemption of Allowance or perquisite to chairman/member of UPSC [Section 10 (45)] 87. Exemption of specified income of certain bodies or authorities [Section 10(46)] 88. Exemption of Income of notified Infrastructure debt fund [Section 10(47)] 89. Exemption of Income of a foreign company from sale of Crude Oil in India [Section 10 (48)] 90. Exemption of income of National Financial Holdings Company [Section 10(49)] 91. Any Income received on or before May 31, 2016 by way of distributed income referred to section 115TA received from a securitization trust by any person being an investor of the said trust [Section 10(35A)] 14

Tax Saving Instruments for F.Y. 2017-18 [A.Y. 2018-19] A. Deductions from Capital Gain Income Exemption/Deduction Section 54 Investment of long-term capital gains, arising from sale of residential house or land appurtenant thereto, in purchase/construction of one new residential house (Subject to certain conditions and limits). Section 54B Investment of capital gains, arising from transfer of land used for agricultural purposes by an individual or his parents or a HUF, in other agricultural land (Subject to certain conditions and limits). Section 54F Investment of long-term capital gains, arising from transfer of any long term asset other than a residential house property, in one new residential house property, provided that on the date of transfer the assessee should not own more than one residential house property (Subject to certain conditions and limits). Section 54GB Investment of long-term capital gains arising from transfer of long-term capital asset, being a residential property, for subscribing the equity shares of an eligible company and such company has, within one year from the date of subscription, utilized this amount for purchase of specified new asset (subject to certain conditions and limits). Note: Remarks Amount invested in one new house or capital gain, whichever is lower. Amount invested in agricultural land or capital gains, whichever is lower. Amount invested in one new asset X capital gains/ et Consideration Amount invested in new asset by eligible Co. X Capital gains/net Consideration 15

1. W.e.f. April 1, 2017, eligible start-up is also included in definition of eligible company. 2. Provisions of this section shall not apply to any transfer of residential property made after March 31, 2017. However, in case of an investment in eligible start-up, the residential property can be transferred up to March 31, 2019. B. General-Deductions related to certain payments Exemption/Deduction Section 80C 1. Life insurance premium for policy: a) in case of individual, on life of assessee, assessee s spouse and any child of assessee b) in case of HUF, on life of any member of the HUF 2. Sum paid under a contract for a deferred annuity: a) in case of individual, on life of the individual, individual s spouse and any child of the individual (however, contract should not contain an option to receive cash payment in lieu of annuity) b) in case of HUF, on life of any member of the HUF 3. Sum deducted from salary payable to Government servant for securing deferred annuity or making provision for his wife/children Remarks Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD) 16

[qualifying amount limited to 20% of salary] 4. Contributions by an individual made under Employees Provident Fund Scheme 5. Contribution to Public Provident Fund Account in the name of: a) in case of individual, such individual or his spouse or any child of such individual b) in case of HUF, in the name of any member there of 6. Contribution by an employee to a recognized provident fund 7. Contribution by an employee to an approved superannuation fund 8. Subscription to any notified security or notified deposit scheme of the Central Government. For this purpose, Sukanya Samriddhi Account Scheme has been notified vide Notification No. 9/2015, dated 21/1/2015. Any sum deposited during the year in Sukanya Samriddhi Account by an individual would be eligible for deduction. Amount can be deposited by an individual in the name of her girl child or any girl child for whom such an individual is the legal guardian. 9. Subscription to notified savings certificates [National Savings Certificates (VIII Issue)] 10. Contribution for participation in unit-linked Insurance Plan of UTI: a) in case of an individual, in the name of the individual, his spouse or any child of such individual b) in case of a HUF, in the name of any member thereof 11. Contribution to notified unit-linked insurance 17

plan of LIC Mutual Fund: a) in the case of an individual, in the name of the individual, his spouse or any child of such individual b) in the case of a HUF, in the name of any member thereof 12. Subscription to notified deposit scheme or notified pension fund set up by National Housing Bank [Home Loan Account Scheme/National Housing Banks (Tax Saving) Term Deposit Scheme, 2008] 13. Tuition fees (excluding development fees, donations, etc.) paid by an individual to any university, college, school or other educational institution situated in India, for full time education of any 2 of his/her children 14. Certain payments for purchase/construction of residential house property 15. Subscription to notified schemes of (a) public sector companies engaged in providing long-term finance for purchase/construction of houses in India for residential purposes/(b) authority constituted under any law for satisfying need for housing accommodation or for planning, development or improvement of cities, towns and villages, or for both 16. Sum paid towards notified annuity plan of LIC or other insurer 17. Subscription to any units of any notified [u/s 10(23D)] Mutual Fund or the UTI (Equity Linked Saving Scheme, 2005) 18. Contribution by an individual to any pension fund set up by any mutual fund which is referred to in section 10(23D) or by the UTI (UTI 18

Retirement Benefit Pension Fund) 19. Subscription to equity shares or debentures forming part of any approved eligible issue of capital made by a public company or public financial institutions 20. Subscription to any units of any approved mutual fund referred to in section 10(23D), provided amount of subscription to such units is subscribed only in eligible issue of capital referred to above. 21. Term deposits for a fixed period of not less than 5 years with a scheduled bank, and which is in accordance with a scheme framed and notified. 22. Subscription to notified bonds issued by the NABARD. 23. Deposit in an account under the Senior Citizen Savings Scheme Rules, 2004 (subject to certain conditions) 24. 5-year term deposit in an account under the Post Office Time Deposit Rules, 1981 (subject to certain conditions) Section 80CCC Contribution to certain specified Pension Funds of LIC/other insurer (Subject to certain conditions). Section 80CCD Contribution to Pension Scheme (NPS) notified by the Central Government (Subject to certain conditions). Note:- 1. Deduction under section 80CCD(2) on account of contribution made by the employer to a pension scheme is not subject to ceiling limit of Rs. Up to 1,50,000 (Subject to overall limit of Rs. 1,50,000 undersection 80C, 80CCC and 80CCD) Amount contributed to pension scheme or 10% of salary/gross total income*, whichever is less (subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE) shall be allowed as deduction under 19

1,50,000 as provided under Section 80CCE. 2. Addition deduction of Rs. 50,000 shall not be allowed in respect of contribution which is considered for deduction under Section 80CCD(1), i.e., limit of 10% of salary/gross total income 3. Any payment from NPS to an employee because of closure or his opting out of the pension scheme is chargeable to tax. However, with effect from the assessment year 2017-18, the whole amount received by the nominee from NPS on death of the assessee shall be exempt from tax. Section 80 CCG Amount invested by specified resident individuals in listed shares or listed units in accordance with notified scheme for a lock-in period of 3 years (Subject to certain conditions). Section 80CCD(1). Additional deduction to the extent of Rs. 50,000 shall also be available to the assessee under section 80CCD(1B). The additional deduction is not subject to ceiling limit of Rs. 1,50,000 as provided under Section 80CCE. Contribution made by employer shall also be allowed as deduction under section 80CCD(2) while computing total income of the employee. However, amount of deduction could not exceed 10% of salary of the employee. *10% of salary in case of employees otherwise 10% of gross total income. Deduction of 50% of total investment subject to maximum of Rs. 25,000 is allowed for 3 consecutive assessment years, beginning with the assessment year relevant to the previous year in which the listed shares or list units of equity oriented funds are first acquired 20

Section 80D Amount paid (in any mode other than cash) by an individual or HUF to LIC or other insurer to effect or keep in force an insurance on the health of specified person*. An individual can also make payment to the Central Government health scheme and/or on account of preventive health check-up. * specified person means: - In case of Individual - self, spouse, dependent children or parents - In case of HUF - Any member thereof Note: 1. Deduction for preventive health check-up shall not exceed in aggregate Rs. 5,000. 2. Payment on account of preventive health check-up may be made in cash. 3. Within overall limit, deduction shall also be allowed up to Rs. 30,000 towards medical expenditure incurred on the health of specified person provided such person is a very senior citizen and no amount has been paid to effect or to keep in force an insurance on the health of such person. 4. 'Senior citizen' means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year. 5. 'Very senior citizen' means an individual resident in India who is of the age of eighty years or more at any time during the relevant previous year. Section 80DD a) Any expenditure incurred for the medical treatment (including nursing), training and In case of Individual, amount paid: a) For self, spouse and dependent children: Up to Rs. 25,000 (Rs. 30,000 if specified person is a senior citizen or very senior citizen) b) For parents: additional deduction of Rs. 25,000 shall be allowed (Rs. 30,000 if parent is a senior citizen or very super senior citizen) In case of HUF, up to Rs. 25,000 (Rs. 30,000 if specified person is a senior citizen or very senior citizen). Rs. 75,000 (Rs. 1,25,000 in case of severe disability) 21

rehabilitation of a dependent, being a person with disability b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability (Subject to certain conditions). Section 80DDB Expenses actually paid for medical treatment of specified diseases and ailments for: a) In case of Individual: Assessee himself or wholly dependent spouse, children, parents, brothers and sisters b) In case of HUF: Any member of the family who is wholly dependent upon the family (Subject to certain conditions). Note: "dependant" means (i) in the case of an individual, the spouse, children, parents, brothers and sisters of the individual or any of them; (ii) in the case of a HUF, any member thereof, dependant wholly or mainly on such individual or Hindu undivided family for his support and maintenance, and who has not claimed any deduction under section 80U in computing his total income for the assessment year relating to the previous year. Up to Rs. 40,000 (Rs. 60,000 in case of senior citizen and Rs. 80,000 in case of very senior citizen) With effect from assessment year 2016-17, the prescription for medical treatment may be obtained from any specialist doctor not necessarily from a doctor working in Government hospital only. 22

Section 80E Amount paid out of income chargeable to tax by way of payment of interest on loan taken from financial institution/approved charitable institution for pursuing higher education (Subject to certain conditions). Section 80EE Interest payable on loan taken up to Rs. 35 lakhs by taxpayer from any financial institution, sanctioned during the FY 2016-17, for the purpose of acquisition of a residential house property whose value doesn't exceed Rs. 50 lakhs. Note: 1. On the date of sanction of loan, taxpayer should not own any other residential house property. 2. The deduction is available from AY 2017-18 and subsequent assessment years. Section 80GG Rent paid for furnished/unfurnished residential accommodation (Individual not receiving HRA) The amount of interest paid during initial year and 7 immediately succeeding assessment years (or until the above interest is paid in full). Deduction of up to Rs. 50,000 towards interest on loan. Least of the following shall be exempt from tax: a) Rent paid in excess of 10% of total income*; b) 25% of the Total Income; or c) Rs. 5,000 per month. Total Income = Gross total income minus long term capital gains, shortterm capital gains under section 111A, deductions undersections 80C to 80U (other 23

Section 80 TTA Interest on deposits in saving account with a banking company, a post office, co-operative society engaged in banking business, etc. (Subject to certain conditions) than 80GG) and income under section 115A 100% of amount of such income subject to maximum of Rs. 10,000 24

Interest Rate on Small Saving Scheme [w.e.f. 01-04-2017] Ministry of Finance vide Office Memorandum dated 31-03-2017 has revised the Rate of Interest on Small Saving schemes for the First Quarter of Financial Year 2017-18 as under: Instrument Rate of interest w.e.f. 01. 01. 2017 to 31. 03. 2017 Rate of interest w.e.f. 01. 04. 2017 to 30. 06. 2017 Compounding frequency Savings Deposit 4.0 4.0 Annual 1 Year Time Deposit 7.0 6.9 Quarterly 2 Year Time Deposit 7.1 7.0 Quarterly 3 Year Time Deposit 7.3 7.2 Quarterly 5 Year Time Deposit 7.8 7.7 Quarterly 5 Year Recurring Deposit 5 Year Senior Citizens Savings Scheme 5 year Monthly Income Account Scheme 5 Year National Savings Certificate Public Provident Fund Scheme Kisan Vikas Patra Sukanya Samriddhi Account Scheme 7.3 7.2 Quarterly 8.5 8.4 7.7 7.6 Quarterly and paid Monthly and paid 8.0 7.9 Annual 8.0 7.9 Annual 7.7 (will mature in 112 months) 7.6 (will mature in 113 months) Annual 8.5 8.4 Annual Source: Ministry of finance, Office Memorandum F.No. 11412016-NS.ll dated 31-03-2017 25

Conclusion Disclaimer: The above information is for reference only, without any assurance, indication and suggestion. However if someone wants to give any input on above information, all suggestions are welcome. TaxIndiaUpdates.In India 302012 write us at info@taxindiaupdates.in visit http://taxindiaupdates.in Connect with us - About Us: TaxIndiaUpdates is a PRIVATE BLOG founded with the main object to provide updates from Indian Direct & Indirect Taxes via taxation news, important pronouncements of courts, Bare Acts, Rules, Notification, circulars to Chartered Accountants, Company Secretaries, Tax Professional, Cost Accountants and other Professionals. We also provide various useful tools and Forms related to above laws in excel and word format. You may find useful information related to various taxes applicable in India All Right Reserved 2013-2016 TaxIndiaUpdates.In 26