Forbes India 15th Anniversary Special

Jaitley's income tax proposals bring cheer to small taxpayers

The personal income tax rate for individuals in the lowest slab has been halved to 5 percent

Published: Feb 1, 2017 03:59:06 PM IST
Updated: Feb 1, 2017 05:01:28 PM IST

Jaitley's income tax proposals bring cheer to small taxpayers

Finance Minister Arun Jaitley, while presenting the Union Budget for fiscal year 2017-18 on Thursday, announced sops for individuals in the lower end of the tax bracket. Those with taxable incomes between Rs 2.5 lakh and Rs 5 lakh per annum will be taxed at 5 percent from the next financial year instead of the current 10 percent. Combined with the Section 87A rebate, tax for those with income up to Rs 3 lakh would be zero.

In the subsequent tax slabs, there will be a benefit of Rs 12,500.

In an attempt to simplify the filing of income tax returns, the FM announced that those with an annual income below Rs 5 lakh will have to file only a single-page document, provided there is no business income. Moreover, there will be no scrutiny of returns for first-time filers, he added.

A 10 percent surcharge on individuals with annual incomes between Rs 50 lakh and Rs 1 crore has been introduced. For those with incomes above Rs 1 crore per annum, the surcharge will continue to be 15 percent.
Jaitley's income tax proposals bring cheer to small taxpayers

Post Your Comment
Required
Required, will not be published
All comments are moderated