Union Finance Minister Arun Jaitley on Wednesday relaxed the lower brackets of income tax after the introduction of the Union Budget 2017.
Below are the highlights and how it will affect you:
- For people in the income bracket of Rs 2.5 lakh – 5 lakh, the personal income tax has been halved from 10% to 5%.
- After rebates, people with an annual income of upto Rs 3 lakh have been exempted from the income tax.
- Those with annual income between Rs 50 lakh to Rs 1 cr will be levied a surcharge of 10%. There will be 15% surcharge on incomes above Rs 1 cr will continue to be charged.
Finance Minister Arun Jaitley announced in his budget speech that on the recommendation of the Special Investigation Team (SIT) on Black Money, the government had decided not to allow cash transactions above Rs 3 lakh, effective April.
As per reports, anyone transacting in cash above the newly imposed limit of Rs 3 lakh will have to pay a penalty of a similar amount.
Political parties receiving donations above Rs 2,000 will now have to disclose the identity of the donor, Finance Minister Arun Jaitley said, announcing new rules for greater transparency in political funding in the country.
This is a sharp drop from the Rs 20,000 that the political parties were so far allowed to receive in anonymous cash donations.
While presenting his fourth Budget for 2017-18, Jaitley said the government has accepted the Election Commission’s recommendation to bring in transparency in political funding and political parties can take donations from donors through cheque and other digital modes of payments.
Below is the new tax slab:
|Income Slab||Tax Rate|
|Income up to Rs 3,00,000||Nil|
|Income up to Rs 3 lakh to 5 lakhs||5%|
|Income from Rs 5 lakh to Rs 10 lakh||20%|
|Income more than Rs 10 lakh||30%|
|Income above Rs 50 lakh||30% + 10% surcharge|
|Income above Rs 1 crore||30% + 15% surcharge|