Budget 2017-18 – No tax up to Rs. 3 lakh and 5% up to Rs. 5 lakh in F.Y. 2017-18

Budget 2017-18 – No tax up to Rs. 3 lakh and 5% up to Rs. 5 lakh in F.Y. 2017-18

Budget 2017-18: Income Tax rate reduced, no income tax upto Rs 3 lakh
Persons with annual Income upto Rs 3 lakh will not have to pay income
tax and those having income upto Rs 5 lakh will be charged income tax at
5 per cent

budget+17-18+income+tax+rates

                

                  
                                   Press Information
Bureau

                                      Government of India
                                       Ministry of Finance



01-February-2017
14:11 IST
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

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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