Union Budget 2017-18: Income Tax rate halved to 5 per cent for Rs 2.5-5 lakh slab
The Budget has proposed to reduce income tax rate from 10 per cent to 5 per cent for people having income between Rs 2.5 lakh to Rs 5 lakh.
Personal income tax in Rs 2.5 lakh - 5 lakh bracket has been reduced to 5 per cent from 10 per cent.
Jaitley further announced that there will be zero tax liability to people having annual income up to Rs 3 lakh to avoid duplication of benefits for the Rs 2.5-R 5 lakh tax slab.
Earlier, the tax slabs had caps at annual income of Rs 2.5 lakh, Rs 5 lakh and Rs 10 lakh attracting income tax of 10 per cent, 20 per cent and 30 per cent respectively.
Those with annual income between Rs 50 lakh to Rs 1 crore will be levied a surcharge of 10 per cent.
The 15 per cent surcharge on incomes above Rs 1 crore will continue to be charged.
The following tax slabs will be applicable:
| Annual Income | Income Tax | Education Cess | Higher Education Cess |
| Upto Rs 3 lakh (for senior citizens) | Nil | Nil | Nil |
| Rs 2.5-5 lakh | 5% | 2% | 1% |
| Rs 5-Rs 10 lakh | 20% | 2% | 1% |
| Above Rs 10 lakh | 30% | 2% | 1% |
| Above Rs 50 lakh | 30% | + 10% surcharge | |
| Above Rs 1 crore | 30% | + 15% surcharge |
No comments:
Post a Comment