Skip Ribbon Commands
Skip to main content
 

Need help? Call 1-800-270-7000

To offer you an enhanced website experience we have revamped this section. Remembering your User Name & Password just got simpler.

Convert your 10 digit CIP number to a User Name of your choice and select a password you can remember with ease.

If you are having trouble logging in, check if you have typed in the correct User Name or type the old 10 digit CIP number (if you are a 1st time user).

Cookies need to be enabled in your Internet browser in order for you to Login. You need to go to Internet options > Privacy > Advanced > Select the "Accept" or "Prompt" option under "First Party Cookies" > Click Ok
OK


Important: W.e.f 1st July 2017, GST will be levied on Life Insurance Premium as per the applicable tax rates. To know the rate that will be applicable to your specific policy please click here

Income Tax Slabs Rates and Deductions FY 2017-18 @ Birla Sun Life Insurance Articles


Get income tax slab rates and income tax deductions in India for Financial Year (FY) 2017-18 and Assessment Year (AY) 2018-19 and tax benefits under different sections. Choose insurance plan wisely to save tax!
Income Tax Slabs Rates and Deductions FY 2017-18


What is Income Tax Slab

Income tax is a direct tax that is imposed on the income of a person. The taxes are levied at slab rates and it is governed by the Income Tax Act 1961 in India. The income tax paid to the government by the taxpayers is used for the betterment of the public at large. This income is categorized into different groups on the basis of the amount of income and age. Each such group is known as a Tax Slab. Tax is charged at different rates on the range of income falling under different income tax slabs.

The income tax rates are usually revised every year during the budget. Some of the key highlights of this year's Budget announcements related to individual tax payers are as follows –

  • The Budget proposed to cut the income tax rate for individuals in the tax slab of Rs 2.50 lakhs to Rs 5 lakhs (which is the lowest tax slab) to 5% instead of 10%. All other categories of tax payers in subsequent brackets will get a benefit of Rs 12,500.
  • The existing tax rebate under Section 87A, for individuals up to Rs 5 lakh income, is proposed to be reduced to Rs 2,500 from the existing Rs 5,000 for individuals earning between Rs 2.50 lakh to 3.50 Lakhs per annum. As a result of the new Section 87A rebate and the reduction in the lowest slab tax rate to 5%, the tax burden will be zero for those earning upto Rs 3 lakhs and Rs 2,500 for those earning between Rs 3.00 lakh to Rs 3.5 lakh.
  • Also, individuals earning Rs 4.5 lakh can now reduce their tax liability to zero by fully utilising the tax rebate of Rs 150,000 allowed under Section 80C of The Income Tax Act 1961.
  • A Surcharge of 10% on the total income tax payable by individuals earning between Rs 50 lakh and Rs 1 Crore has been proposed. Earlier, there was no such surcharge payable by this category.
  • The Budget has proposed stricter rules for non-filing of ITR on time. A fee of Rs 5,000 is payable if the tax return is filed after the due date, but before 31 December of the assessment year. If IT returns are filed after that, the fee will be Rs 10,000. However, the fees will be lower at Rs 1,000, if the annual income of the taxpayer is up to Rs 5 lakh.
  • To have simple one page Income Tax Return (ITR) Form in order to promote simple tax filing by individuals having taxable income up to Rs 5 lakhs.
  • A person whose income is less than Rs 5 Lakhs and filing income tax return for the first time will not be subjected to any scrutiny in the first year.
  • The base year for indexation calculation is changed from 1st April, 1981 to 1st April, 2001. Indexation benefit is considered for calculation of taxation on capital gains arising out of investments in debt funds or immovable properties.
Proposed Income-Tax slabs and the tax rates for FY 2017-2018 (Assessment year 2018-19) as announced in Budget 2017 for individuals falling under different age groups –

Resident Individuals below the age of 60 years
Net Income Range
Income Tax Rates
Education Cess
Secondary & Higher Education Cess
Upto Rs 250,000
NIL
NIL
NIL
Rs 250,001 - Rs 500,000
5% of (Total Income Rs 250,000)
2% of Income Tax
1% of Income Tax
Rs 500,001 - Rs 10,00,000
Rs 12,500 + 20% of (Total Income Rs 500,000)
2% of Income Tax
1% of Income Tax
Above Rs 10,00,000
Rs 112,500 + 30% of (Total Income Rs 10,00,000)
2% of Income Tax
1% of Income Tax

Surcharge @10% of for taxable income between Rs 50 Lakhs to Rs 1 Crore and 15% for taxable income > Rs 1 Crore

Resident Individuals between age 60 years to < 80 years
Net Income Range
Income Tax Rates
Education Cess
Secondary & Higher Education Cess
Upto Rs 300,000
NIL
NIL
NIL
Rs 300,001 - Rs 500,000
5% of (Total Income Rs 300,000)
2% of Income Tax
1% of Income Tax
Rs 500,001 - Rs 10,00,000
Rs 10,000 + 20% of (Total Income Rs 500,000)
2% of Income Tax
1% of Income Tax
Above Rs 10,00,000
Rs 110,000 + 30% of (Total Income Rs 10,00,000)
2% of Income Tax
1% of Income Tax

Surcharge @10% of for taxable income between Rs 50 Lakhs to Rs 1 Crore and 15% for taxable income > Rs 1 Crore

Resident Individuals age 80 years and above
Net Income Range
Income Tax Rates
Education Cess
Secondary & Higher Education Cess
Upto Rs 500,000
NIL
NIL
NIL
Rs 500,001 - Rs 10,00,000
20% of (Total Income Rs 500,000)
2% of Income Tax
1% of Income Tax
Above Rs 10,00,000
Rs 100,000 + 30% of (Total Income Rs 10,00,000)
2% of Income Tax
1% of Income Tax

Surcharge @10% of for taxable income between Rs 50 Lakhs to Rs 1 Crore and 15% for taxable income > Rs 1 Crore

Income Tax deductions and Exemptions

We will now see the income tax deductions and exemptions allowed under the various sections of the Income Tax Act.

Income Tax Section
Gross Income
How much tax you can save
Birla Sun Life Life Insurance Plans
Section 80C
Across all Income slabs
Upto Rs 46,350 on investment of Rs 150,000
Section 80CCC
Across all Income slabs
Upto Rs 46,350 on investment of Rs 150,000
Section 80D
Across all Income slabs
Upto Rs 7,725 on investment of Rs 25,000


As you can see above, the maximum tax amount that you can save under Section 80C and Section 80CCC is Rs 46,350 upon investment of the maximum amount of Rs 150,000 (figures calculated based on annual income exceeding Rs. 10 Lakhs) allowed under this section.

Another Rs 7,725 can be saved under Section 80D if you buy life insurance health plans upon investment of Rs 25,000 in a year.

We have seen how you can save taxes by paying premiums on various life insurance plans. The other tax benefit of having a life insurance plan is that the maturity benefits and claims received are completely tax free under Section 10(10D) of the Income Tax Act 1961

Buy Term Insurance Online
Date of Birth:
Gender:
Tobacco Consumption:
Desired policy cover:
Toll free (Within India):
1-800-270-7000

Outside India:
+91 22 66917777
(Call charges apply)

Between 9 am to 9 pm, Monday to Saturday

Insurance Dictionary

Quick Links

Notification

Need help? Call 1-800-270-7000
Posted Date :
Subject :
Message :

Notifications

Need help? Call 1-800-270-7000
Are you sure you wish to delete the selected Notification(s)?

Daily NAV's

This site is best viewed with resolution 1024x768 in Internet Explorer 8.0

For more details on risk factors, terms and conditions please read sales brochure carefully before concluding the sale.

Trade Logo displayed above belongs to SUN LIFE ASSURANCE COMPANY OF CANADA and ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED and used by BIRLA SUN LIFE INSURANCE COMPANY LIMITED as per terms and conditions of license Agreement.

Registered Office: One Indiabulls Centre Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013. CIN: U99999MH2000PLC128110 Registration No. 109.

BEWARE OF SUSPICIOUS PHONE CALLS AND FICTITIOUS/FRAUDULENT OFFERS

IRDAI clarifies to the public that,
  • IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums.
  • IRDAI does not announce any bonus. Public receiving such phone calls are requested to lodge a police complaint along with the details of the phone call.