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Tax Planning Tools for F.Y. 2017-18

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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 15th June, 15th September,
15th December and 15th 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

th
On or before 15 Jun, 2017 Not less than 15% of advance tax.
Not less than 45% of advance tax as
th
On or before 15 Sep, 2017 reduced by the amount paid in the earlier
installment.
Not less than 75% of advance tax as
On or before 15Th Dec, 2017 reduced by the amount paid in the earlier
installments.
The whole amount (100%) of advance
Th
On or before 15 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 15th Jun, 2017
On or before 15th Sep, 2017
On or before 15Th Dec, 2017
The whole amount (100%) of advance tax
Th
On or before 15 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 Employees 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 Remarks
Section 54 Amount invested in one
Investment of long-term capital gains, arising from new house or capital
sale of residential house or land appurtenant gain, whichever is lower.
thereto, in purchase/construction of one new
residential house (Subject to certain conditions and
limits).
Section 54B Amount invested in
Investment of capital gains, arising from transfer of agricultural land or
land used for agricultural purposes by an individual capital gains, whichever
or his parents or a HUF, in other agricultural land is lower.
(Subject to certain conditions and limits).
Section 54F Amount invested in one
Investment of long-term capital gains, arising from new asset X capital
transfer of any long term asset other than a gains/ et Consideration
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 Amount invested in new
Investment of long-term capital gains arising from asset by eligible Co. X
transfer of long-term capital asset, being a Capital gains/Net
residential property, for subscribing the equity Consideration
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:

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 Remarks
Section 80C Up to 1,50,000 (Subject
1. Life insurance premium for policy: to overall limit of Rs.
1,50,000 under Section
a) in case of individual, on life of assessee,
80C, 80CCC and 80CCD)
assessees 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,
individuals 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

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 Up to 1,50,000 (Subject
Contribution to certain specified Pension Funds of to overall limit of Rs.
LIC/other insurer (Subject to certain conditions). 1,50,000 underSection
80C, 80CCC and 80CCD)
Section 80CCD Amount contributed to
Contribution to Pension Scheme (NPS) notified by pension scheme or 10%
the Central Government (Subject to certain of salary/gross total
conditions). income*, whichever is
less (subject to ceiling
Note:-
limit of Rs. 1,50,000 as
1. Deduction under section 80CCD(2) on account provided under Section
of contribution made by the employer to a pension 80CCE) shall be allowed
scheme is not subject to ceiling limit of Rs. as deduction under

19
1,50,000 as provided under Section 80CCE. Section 80CCD(1).
2. Addition deduction of Rs. 50,000 shall not be Additional deduction to
allowed in respect of contribution which is the extent of Rs. 50,000
considered for deduction under Section shall also be available to
80CCD(1), i.e., limit of 10% of salary/gross total the assessee under section
income 80CCD(1B). The
3. Any payment from NPS to an employee additional deduction is
because of closure or his opting out of the pension not subject to ceiling limit
scheme is chargeable to tax. However, with effect of Rs. 1,50,000 as
from the assessment year 2017-18, the whole provided under Section
amount received by the nominee from NPS on 80CCE.
death of the assessee shall be exempt from tax. 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.
Section 80 CCG Deduction of 50% of total
Amount invested by specified resident individuals investment subject to
in listed shares or listed units in accordance with maximum of Rs. 25,000 is
notified scheme for a lock-in period of 3 years allowed for 3 consecutive
(Subject to certain conditions). 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 In case of Individual,
Amount paid (in any mode other than cash) by an amount paid:
individual or HUF to LIC or other insurer to effect a) For self, spouse and
or keep in force an insurance on the health of dependent children: Up to
specified person*. An individual can also make Rs. 25,000 (Rs. 30,000 if
payment to the Central Government health scheme specified person is a
and/or on account of preventive health check-up. senior citizen or very
* specified person means: senior citizen)
- In case of Individual - self, spouse, dependent b) For parents: additional
children or parents deduction of Rs. 25,000
shall be allowed (Rs.
- In case of HUF - Any member thereof
30,000 if parent is a
Note: senior citizen or very
1. Deduction for preventive health check-up super senior citizen)
shall not exceed in aggregate Rs. 5,000. In case of HUF, up to Rs.
2. Payment on account of preventive health 25,000 (Rs. 30,000 if
check-up may be made in cash. specified person is a
3. Within overall limit, deduction shall also be senior citizen or very
allowed up to Rs. 30,000 towards medical senior citizen).
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 Rs. 75,000 (Rs. 1,25,000
a) Any expenditure incurred for the medical in case of severe
treatment (including nursing), training and disability)

21
 rehabilitation of a dependent, being a person Note:
with disability "dependant" means
b) Any amount paid or deposited under an (i) in the case of an
approved scheme framed in this behalf by the individual, the spouse,
LIC or any other insurer or the Administrator children, parents, brothers
or the specified company for the maintenance and sisters of the
of a dependent, being a person with disability individual or any of them;
(Subject to certain conditions). (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.
Section 80DDB Up to Rs. 40,000 (Rs.
Expenses actually paid for medical treatment of 60,000 in case of senior
specified diseases and ailments for: citizen and Rs. 80,000 in
case of very senior
a) In case of Individual: Assessee himself or
citizen)
wholly dependent spouse, children, parents,
brothers and sisters With effect from
assessment year 2016-17,
b) In case of HUF: Any member of the family
the prescription for
who is wholly dependent upon the family
medical treatment may be
(Subject to certain conditions). obtained from any
specialist doctor not
necessarily from a doctor
working in Government
hospital only.

22
Section 80E The amount of interest
Amount paid out of income chargeable to tax by paid during initial year
way of payment of interest on loan taken from and 7 immediately
financial institution/approved charitable institution succeeding assessment
for pursuing higher education (Subject to certain years (or until the above
conditions). interest is paid in full).
Section 80EE Deduction of up to Rs.
Interest payable on loan taken up to Rs. 35 lakhs 50,000 towards interest
by taxpayer from any financial institution, on loan.
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 Least of the following
Rent paid for furnished/unfurnished residential shall be exempt from tax:
accommodation (Individual not receiving HRA) 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, short-
term capital gains
under section 111A,
deductions undersections
80C to 80U (other

23
 than 80GG) and income
under section 115A
Section 80 TTA 100% of amount of such
Interest on deposits in saving account with a income subject to
banking company, a post office, co-operative maximum of Rs. 10,000
society engaged in banking business, etc. (Subject
to certain conditions)

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 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:
Rate of interest Rate of interest
w.e.f. 01. 01. w.e.f. 01. 04. Compounding
Instrument
2017 to 31. 03. 2017 to frequency
2017 30. 06. 2017
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
7.3 7.2 Quarterly
Deposit
5 Year Senior
Quarterly and
Citizens Savings 8.5 8.4
paid
Scheme
5 year Monthly
Monthly and
Income Account 7.7 7.6
paid
Scheme
5 Year National
8.0 7.9 Annual
Savings Certificate
Public Provident
8.0 7.9 Annual
Fund Scheme
7.7 (will mature in 7.6 (will mature in
Kisan Vikas Patra Annual
112 months) 113 months)
Sukanya Samriddhi
8.5 8.4 Annual
Account Scheme
Source: Ministry of finance, Office Memorandum F.No. 11412016-NS.ll dated 31-03-2017

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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.

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