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  1. Know your income tax after Arun Jaitley’s Budget 2016 changes: Check with just one click

Know your income tax after Arun Jaitley’s Budget 2016 changes: Check with just one click

How to calculate your Income Tax: For the salaried individuals, the Finance Minister Arun Jaitley did not tinker with the income tax rate. The budget has provided some relief to small tax payers by enhancing the rebate under Section 87 (A) from Rs 2,000 to Rs 5,000 for individuals having taxable income up to Rs 500,000 resulting in income tax saving of Rs 3,090 (including cess).

By: | New Delhi | Updated: March 4, 2016 9:59 PM
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How to calculate your Income Tax: The increase in the deduction for rent paid from Rs 24,000 to Rs 60,000 under Section 80GG will provide relief to individuals staying in a rented house and not receiving house rent allowance from their employer. (PTI)

How to calculate your Income Tax: For the salaried individuals, the Finance Minister Arun Jaitley did not tinker with the income tax rate. The budget has provided some relief to small tax payers by enhancing the rebate under Section 87 (A) from Rs 2,000 to Rs 5,000 for individuals having taxable income up to Rs 500,000 resulting in income tax saving of Rs 3,090 (including cess). The increase in the deduction for rent paid from Rs 24,000 to Rs 60,000 under Section 80GG will provide relief to individuals staying in a rented house and not receiving house rent allowance from their employer.

It will result in income tax savings of Rs 10,800 in highest income tax bracket (excluding cess and surcharge). Also, the additional interest deduction of Rs 50,000 per annum for the first time home buyers where the amount of loan does not exceed Rs 35 lakh and the value of house does not exceed Rs 50 lakh is a welcome move and will give some relief to those individuals wanting to buy a house.

1.How to calculate your Income Tax without considering Sec. 80C deduction of Rs. 150,000

Those earning less than Rs 5 lakh a year save Rs 3,090 after the increase in Section 87(A) by Rs 3,000. For others, there is no change. However, for individuals having income more than Rs 1 crore, the additional surcharge has been increased from existing 12% to 15% thereby increasing the maximum marginal rate of tax to 35.54% from existing 34.61%. As a result, those earning over Rs 1 crore will have to pay Rs 96,562 more in the next financial year.

Income Tax slabs (without 80C consideration)
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2. How to calculate your Income Tax considering 80C deduction of Rs 150,000 and additional Rs 50,000 for NPS under section 80CCD

After considering 80C deduction of Rs 150,000 a year and additional Rs 50,000 for investment in National Pension System (Section 80CCD), an individual earning below Rs 5 lakh will not have to pay any tax from the next financial year.

Copy: Income Tax slabs (without 80C consideration)
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3. How to calculate your Income Tax considering 80D, 80C deduction of Rs. 150,000 and additional Rs. 50,000 for NPS under section 80CCD

After considering 80D of Rs 25,000 for health insurance for the family of four, 80C deduction of Rs. 150,000 and additional Rs 50,000 for NPS under section 80CCD, those below Rs 5 lakh will not have to pay any tax and instead save additional Rs 515 from next financial year.

Considering 80D, 80C
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4. How to calculate your Income Tax considering Sec. 80D, 80C deduction of Rs. 150,000, additional Rs. 50,000 for NPS u/s 80CCD and section 24 deduction of 200,000

After considering Section 80D of Rs 25,000 for health insurance for the family of four, 80C deduction of Rs 150,000, additional Rs 50,000 for NPS u/s 80CCD and section 24 deduction of 200,000 on interest paid for housing loan, an individual with income up to Rs 8 lakh a year can save up to Rs 8,240 from next financial year.

considering 80c, 80d, 80ccd, section 24 deduction
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