Union Budget 2017 and income tax slabs: Who gains, who loses
Arun Jaitley has reduced the income tax rate for those earning between Rs2.5 lakh and Rs5 lakh, but for the rich, there is some pain in the form of a surcharge
Finance minister Arun Jaitley’s Union Budget 2017, which was presented on Wednesday, may not have met the high expectations set especially in the backdrop of demonetisation, but it did bring some relief for everyone. The government has reduced the personal income tax rate for those in the tax slab of Rs2.5 lakh to Rs5 lakh to 5% from 10% earlier, which translates into a saving of Rs12,500 (without including cess) for everyone.
For those who earn up to Rs5 lakh, the savings are a lot more. The reduction in the first tax slab along with a rebate of Rs2,500 for income up to Rs3.5 lakh means that if your annual income is Rs3 lakh, you don’t pay any taxes. Even those who earn up to Rs4.5 lakh a year don’t pay taxes if you factor in the section 80C deduction of Rs1.5 lakh and the rebate.
But for the rich there is some pain in the form of a surcharge. This budget levied a surcharge of 10% for those with incomes Rs50 lakh-Rs1 crore. Those above Rs1 crore already pay a surcharge of 15%. This table tells you how much extra you pay or save. This is for individuals below 60 years of age and the calculation includes a cess of 3%.
To check your income tax for 2017-18, click here.
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First Published:2 Feb 2017, 09:59 PM IST
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