Budget 2017: Income Tax reduced, find revised Tax slabs and rates here

Union Finance Minister Arun Jaitley presented the Union Budget 2017 today. The following tax slabs were proposed by Finance minister Arun Jaitley. The new tax rates are aimed at putting more money into the pockets of the middle class to boost expenditure and in-turn economic growth. The revised tax slabs and rates are provided below:

IT Rates Revised: Key Highlights

 Appealing to the middle income groups, FM Jaitley expanded the nil tax bracket from the existing Rs 2.5 lakhs to Rs 3 lakhs. There was something to cheer for the middle class as well as Jaitley slashed the income tax rates for individuals between Rs 3 and 5 Lakhs to 5% from the existing 10%. Other highlights include:

• 0% tax liability on income up to Rs 3 lakhs – Tax Benefit of Rs 5000
• 5% tax on income between Rs 3 to 5 lakhs – Tax Benefit of Rs 12500
• 10% Surcharge on individuals with income between 50 lakh to 1 Crore
• 15% surcharge on individuals with income of 1 Crore and above
• No change in service taxes

Benefit of New Tax system

Other Details

• Continuing their crusade against blackmoney FM also announced that cash transactions beyond Rs 3 lakhs will not be allowed henceforth
• Maximum of amount to political parties would be limited to Rs 2000
• Holding period for long-term capital gains for immobile assets reduced from 3 years to 2 years
• Base year for indexation to be 2001

With an aim to enhance the tax compliance of the citizens, FM also announced that there would be a single one-page form for filing IT returns for taxable income up to 5 lakh rupees except one for business. The time period of revising tax return is expected to be reduced to 12 months.