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

Feb 1, 2017 16:15 IST
Budget 2017: Income Tax reduced, find revised Tax slabs and rates here

Revised Tax slabs and ratesUnion 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:

Tax Slab

New Tax Rate

Up to Rs 3 lakhs

No Tax

Between Rs 3 and 5 Lakhs

5%

Between Rs 5 and 10 lakhs

20%

Above Rs 10 lakhs

30%

Income above Rs 50 Lacs            

30% + 10% surcharge

Income above  Rs 1 crore

30% +15% Surcharge

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

Income

Earlier Tax

Proposed Tax

Saving

2.5 laks

Rs. 0

Rs. 0

Rs. 0

3 laks

Rs. 5000

Rs. 0

Rs. 5000

5 laks

Rs. 25000

Rs. 12500

Rs. 12500

6 laks

Rs. 35000

Rs. 17500

Rs. 17500

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.

Is this article important for exams ? Yes16 People Agreed

DISCLAIMER: JPL and its affiliates shall have no liability for any views, thoughts and comments expressed on this article.

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