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Union Budget 2017: Taxation Reforms

The General Budget 2017 proposed following changes with regard to taxation.

Feb 1, 2017 13:01 IST
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budet 2017 tax reforms arun jaitley

Union Finance Minister Arun Jaitley presented the Union Budget 2017. The following taxation reforms were proposed by FM Jaitley.

The New Tax Slabs proposed in Budget 2017

Tax Slab

New Tax Rate

Up to 3 lakhs

No Tax

Between 3 and 5 Lakhs

5%

Between 5 and 10 lakhs

20%

Above 10 lakhs

30%

Union Budget 2017 Taxation Reforms

Following are key highlights

• The Individuals tax rates Slashed  on income from 2.5 lakh to 5 lakh  reduced to 5 % instead of 10%

0% tax liability on income up to 3 lacs

10% Surcharge on individuals with income between 50 lakh to 1 Crore

15% surcharge on individuals with income of 1 cr and more

No cash transaction on  above 3 lacs and more  to reduce black money

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• Holding period for long-term capital gains for immobile assets reduced from 3 years to 2 years; base year for indexation to be 2001.

A single one-page form for filing IT returns for taxable income up to 5 lakh rupees except one for business

• Time period of revising tax return to be reduced to 12 months

• Income tax changes announced for small companies with an annual turnover of 50 crore. They will now to pay 25% instead of 30% and save 5 %

• Maximum amount of cash donation a political party can receive to be 2000 rupees from any one source

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


 

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