Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.
Finance Minister appeals to all citizens to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in this slab.
A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income
Finance Minister appeals to all citizens to contribute to Nation Building by making a small payment of 5 per cent tax if their income is falling in this slab.
A simple one- page Income Tax Return form for the category of individuals having taxable income upto Rs 5 lakhs other than business income
The Union Finance Minister Shri Arun
Jaitley reduced the rate of taxation from existing 10 per cent to 5 per cent
for individual assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This
would reduce the tax liability of all persons below Rs 5 lakh income either to
zero (with rebate) or 50 per cent of their existing liability.
While presenting the General Budget
2017-18 in the Parliament today, the Union Finance Minister Shri Jaitley said
that the present burden of taxation is mainly on honest tax payers and salaried
employees who are showing their income correctly. Therefore,
post-demonetisation, there is a legitimate expectation of this class of people
to reduce their burden of taxation. The Finance Minister further said that if a
nominal rate of taxation is kept for lower slab, many more people will prefer
to come within the tax net. The Finance Minister made an appeal to all the citizens
of India to contribute to Nation Building by making a small payment of 5 per
cent tax if their income is falling in the lowest slab of Rs 2.5 lakhs to Rs 5
lakhs.
The Union Finance Minister Shri Jaitley said
that the Government is trying to bring within tax-net more people who are
evading taxes. So, in order to expand tax net, it is decided to have a simple
one-page form to be filed as Income Tax Return for the category of individuals
having taxable income upto Rs 5 lakhs other than business income. Also, a
person of this category who files income tax return for the first time would
not be subjected to any scrutiny in the first year unless there is specific
information available with the Department regarding his high value transaction.
In his Budget Speech, the Finance
Minister further said that in order not to have duplication of benefit, the
existing benefit of rebate available to the same group of beneficiaries is
being reduced to Rs 2500, available only to assessees upto income of Rs 3.5
lakhs. The combined effect of both these measures will mean that there would be
zero tax liability for people getting income upto Rs 3 lakhs per annum. and the
tax liability will only be Rs 2,500 for people with income between Rs 3 and Rs
3.5 lakhs. While the taxation liability of people with income upto Rs 5 lakhs
is being reduced to half, all the other categories of tax payers in the
subsequent slabs will also get a uniform benefit of Rs 12,500 per person. The
total amount of tax foregone on account of this measure is Rs 15,500 crore.
In order to make good some of this
revenue loss on account of this relief, a surcharge of 10 per cent of tax
payable on categories of individuals whose annual taxable income is between Rs
50 lakhs and Rs 1 crore has been proposed. This is likely to give additional
revenue of Rs 2,700 crore.
The Finance Minister said that the
direct tax proposals for exemptions, etc. would result in revenue loss of Rs
22,700 crore but after counting for revenue gain of Rs 2,700 crore for
additional resource mobilisation proposal, the net revenue loss in direct tax
would come to Rs 20,000 crore.
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