Sunday, December 18, 2016

Income Tax Rates for taxpayers under 60 years of age in FY 2016-17, FY 2015-16, FY 2014-15 are below.

How much Income Tax do I need to pay?

How much tax you should pay depends upon the tax slab applicable to your income. Income tax is calculated on the basis of these tax slabs.
Income Tax Rates for taxpayers under 60 years of age in FY 2016-17, FY 2015-16, FY 2014-15 are below.
Income SlabTax Rate
Up to Rs.2,50,000No Tax
Rs.2,50,000 - Rs.5,00,00010%
Rs.5,00,000 - Rs.10,00,00020%
Rs.10,00,000 and beyond30%

Income Tax Rates for taxpayers under 60 years of age in FY 2013-14 are below.
Income SlabTax Rate
Up to Rs.2,00,000No Tax
Rs.2,00,000 - Rs.5,00,00010%
Rs.5,00,000 - Rs.10,00,00020%
Rs.10,00,000 and beyond30%

How to calculate income tax? (See example)

Income tax calculation for the Salaried
Income from salary is the sum of Basic salary + HRA + Special Allowance + Transport Allowance + any other allowance. Some components of your salary are exempt from tax, such as medical reimbursements, telephone bills reimbursement. If you receive HRA and live on rent, you can claim exemption on HRA. Calculate exempt portion of HRA, by using this HRA Calculator
Transport allowance is given to employees as part of their salary to meet travel expenses from residence to work & back. Starting financial year 2015-16, limit of exemption on transport allowance is 1,600 per month or Rs 19,200 per annum. For example - if you receive Rs 2,000 as transport allowance every month, Rs 1600 shall be exempt from tax and remaining Rs 400 per month or Rs 4,800 per annum shall be taxed as salary income.
Let’s understand income tax calculation by way of an example. Neha receives a Basic Salary of Rs 50,000 per month. HRA of Rs 25,000. Transport Allowance of Rs 8,000 per month. Special Allowance of Rs 5,000 per month. LTA of Rs 20,000 annually. Neha pays a rent of Rs 20,000 and lives in Delhi.
Basic Salary6,00,000-6,00,000
Transport Allowance96,00019,20076,800
Special Allowance60,000-60,000
LTA20,00012,000 (bills submitted)8,000
Medical Bills15,00015,000(bills submitted)-
Gross Total Income from Salary8,64,800
To calculate income tax, include income from all sources. Include:
  • Income from Salary (salary paid by your employer)
  • Income from house property (add any rental income, or include interest paid on home loan)
  • Income from capital gains (income from sale purchase of shares or house)
  • Income from business/profession (income from freelancing or a business or profession)
  • Income from other sources (saving account interest income, fixed deposit interest income, interest income from bonds)

Neha has income from interest from savings account of Rs 8,400 and a fixed deposit interest income of Rs 10,000 during the year. Neha has made some investments to save income tax. PPF investment of Rs 50,000. ELSS purchase of Rs 20,000 during the year. LIC premium of Rs 8,000. Medical insurance paid of Rs 12,000. Here are the deductions Neha can claim.
NatureMaximum DeductionEligible investments/expensesAmount claimed by Neha
Section 80CRs.1,50,000PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer(Neha’s contribution) = Rs 50,000 *12% *12 = 72,000Rs 1,50,000
Section 80DRs 25,000 for self Rs 30,000 for parentsMedical insurance premium Rs 12,000Rs 12,000
Section 80TTA10,000Savings account interest 8,400Rs. 8,400

Calculation of gross taxable income in India
Income from Salary8,64,800
Income from Other Sources18,400
Gross Total Income8,83,200
Gross Taxable Income7,12,800

How to calculate income tax in India for Neha
Up to Rs 2,50,000Exempt from tax0
Rs 2,50,000 to Rs 5,00,00010% (10% of Rs 5,00,000 less Rs 2,50,000)25,000
Rs 5,00,000 to Rs 10,00,00020% ( 20% of Rs 7,12,800 less Rs 5,00,000)42,560
More than Rs Rs 10,00,00030% (nil)0
Cess3% of total tax (3% of Rs 25,000 + Rs 42,560)2,026
Total Income TaxRs 25,000 + Rs 42,560 + 2,026Rs 69,586.80

7th Pay Commission: Central Govt employee union calls nationwide strike on February 15, demand settlement of 21-points-charter demand

7th Pay Commission: Central Govt employee union calls nationwide strike on February 15, demand settlement of 21-points-charter demand

New Delhi, December 17: After a massive Parliament march conducted by the central government employees on December 15, the union has called again for a nationwide strike on February 15, 2017, demanding the Union Government to make an immediate settlement of their 21 points charter demands in 7th Pay Commission (7CPC). The strike has been called in a joint cooperation by several central government employees union against what they say “the betrayal and breach of assurance by Home Minister Rajnath Singh, Finance Minister Arun Jaitley and Railway Minister Suresh Prabhu”.

On 15th December a massive Parliament march was conducted in which around 15,000 central government employees from all over the states participated. In the Parliament march autonomous bodies employees and pensioners also extended their support by joining the rally. During the rally which the central government employees union view as a success also declared a one-day nationwide strike on February 15.

The strike has been announced by the National President of the Confederation KKN Kutty, Secretary General M Krishnan and several other leaders present at the rally.

According to reports, the rally condemned the authoritarian attitude of the NDA Government and also the breach of an assurance given by the trio Union Ministers to NJCA leaders who met them after the implementation of 7th Pay Commission.

What are 21 Points Charter Demands made by central government employees:

1) The central government employees union asked the government to settle the demands raised by NJCA regarding modifications of 7th Pay Commission recommendations as submitted in the memorandum to Cabinet Secretary on 10th December 2015. Honour the assurance given by the Union Ministers to NJCA on 30th June 2016 and 6th July 2016, especially increase in minimum wage and fitment factor. Grant revised HRA at the existing percentage itself ie: 30 per cent, 20 per cent and 10 per cent. Accept the proposal of the staff side regarding transport allowance. Settle all anomalies arising out of implementation of 7th CPC recommendations, in a time bound manner.

2) Implement option-I recommended by 7th Pay Commission and accepted by the Government regarding parity in pension of pre-2016 pensioners, without any further delay. Settle the pension related issues raised by NJCA against item 13 of its memorandum submitted to Cabinet Secretary on 10th December 2015.

3) Scrap PFRDA Act and New Pension System (NPS) and grant pension and Family Pension to all Central Government employees recruited after 1st January 2004, under CCS (Pension) Rules 1972.

4) Treat Gramin Dak Sewaks of postal department as civil servants, and extend all benefits like pay, pension, allowances etc. of departmental employees to GDS. Publish GDS Committee report immediately.

5) Regularise all casual, contract, part-time, contingent and Daily rated mazdoors and grant equal pay and other benefits. Revise the wages as per 7th CPC minimum pay.

6) No downsizing, privatisation, outsourcing and contractorisation of government functions.

7) Withdraw the arbitrary decision of the Government to enhance the benchmark for performance appraisal for promotion and financial upgradations under MACP from “GOOD” to VERY GOOD” and also decision to withhold annual increments in the case of those employees who are not able to meet the bench march either for MACP or for regular promotion within the first 20 years of service. Grant MACP pay fixation benefits on promotional hierarchy and not on pay-matrix hierarchy. Personnel promoted on the basis of examination should be treated as fresh entrants to the cadre for grant of MACP.

8) Withdraw the draconian FR 56 (J) and Rule 48 of CCs (Pension) Rules 1972 which is being misused as a short cut as purity measure to punish and victimize the employees.

9) Fill up all vacant posts including promotional posts in a time bound manner. Lift ban on creation of posts. Undertake cadre Review to access the requirement of employees and their cadre prospects. Modify recruitment rules of Group-‘C’ cadre and make recruitment on Reginal basis.

10) Remove 5% ceiling on compassionate appointments and grant appointment in all deserving cases.

11) Grant five promotions in the service career to all Central Govt. employees.

12) Abolish and upgrade all Lower Division Clerks to Upper Division Clerks.

13) Ensure parity in pay for all stenographers, Assistants, Ministerial Staff in subordinate offices and in all organized Accounts cadres with Central Secretariat staff by upgrading their pay scales. Grant pay scale of Drivers in Loksabha Secretariat to Drivers working in all other Central Government Departments.

14) Reject the stipulation of 7th CPC to reduce the salary to 80 per cent for the second year of Child Care leave and retain the existing provision.

15) Introduce Productivity Linked bonus in all department and continue the existing bi-lateral agreement on PLB wherever it exists.

16) Ensure cashless medical treatment to all Central Government employees & Pensioners in all recognized Government and Private hospitals.

17) Revision of Overtime Allowance (OTA) and Night Duty Allowance (NDA) w.e.f 01.01.2016 based on 7th CPC pay scale.

18) Revision of wages of Central Government employees in every five years.

19) Revive JCM functioning at all levels. Grant recognition of the unions/Associations under CCS (RSA) Rules 1993 within a time frame to facilitate effective JCM functioning.

20) Implementation of the Revised Pay structure in respect of employees and pensioners of autonomous bodies consequent on implementation of CCS (Revised Pay) Rules 2016 in respect of Central Government employees and pensioners w.e.f. 01.01.2016.

21) Implementation of the “equal pay for equal work” judgement of the Supreme Court in all departments of the Central Government.
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Pradhan Mantri Garib Kalyan Yojana, 2016.