Tax Payment of Teachers

Finance Act 2016,income tax is

required to be deducted under
the Section 192 of the act from
the income chargeable under
the head salaries for the
financial year
Net Income Range Income Tax Rate
• Net income up to Rs • Nil
250000
• NI 250001-500000 • 5%of Total income
minus Rs 250000) Rs
2500 Tax Rebate if the
income is below Rs
350000
• Net income Rs 500000- • Rs 12500+ 20% ( Total
Rs 1000000 income – Rs 500000)
• Rs 112500+ 30% (Total
• Net income above Rs
income – Rs 1000000)
1000000
• Education Cess =2% of
income Tax and
Secondary and higher
education cess =1% of
income tax applicable
 Important Changes made in income
Tax Act from 2017-2018
• The income tax slab for individuals, females, senior
citizen remains same in the FY 2017-2018 . There is
no change. The basic exemption remain at 2.5
lakhs.
• Reduced Tax for lower slab: The tax rate for
income between Rs 2.5lakh to Rs 5 lakhs has been
reduced to 5%from 10%.
• Rebate under section 87 A reduced to Rs 2500:The
income tax rebate under section 87 A has been
reduced from Rs 2500. Also the eligibility of tax
able income limit has been reduced from Rs 5 lakh
to Rs 3.5lakhs.
 Interest deduction on rented property
capped at Rs 2 lakh. Budget 2017 has bridged
the gap between self- occupied and rented
property by capping the deduction on home
loan interest to Rs 2 lakh in both cases.
 Cash donation limit to Rs 2000. Any donation
above Rs 2000 in cash would not eligible for
tax exemption . Dominations have to be
digital or by cheque to qualify for tax breaks.
 Tax exemption to partial withdrawal from
NPS. Partial with drawl up to 25% of the
contribution made by an employee would be
exempted from tax.
More tax deduction on NPS for
self employed:
From next financial year self –
employed individuals can claim
deduction up to 20% of their gross
income for contribution made to
National Pension System(NPS).
 Income Excluded from salary in brief

LIC , Gratuity , Commuted Pension.

Tour/Transfer TA/ DA, PF payments ,
Medical reimbursement , educational
allowance.
Any income earned fro other sources
other than salary shall also be shown in
other income.
 Deductions/savings allowed from income
tax
Professional tax
Interest on housing loan
advance
Expenditure on medical
treatment, handicapped
dependent
Donations to charitable
trusts