Budget 2017: Good news | FM Jaitley cuts Income Tax from 10% to 5% for 2.5 lakh to 5 lakh slab

Finance Minister Arun Jaitley on Wednesday gave a relief people in the lowest income tax slab in the Union Budget 2017, while maintaining most of the other slabs steady as before. 

While presenting the budget 2017, the finance minister said that India is largely a non-tax compliance society, “so it is important to make tax more practical for people”. 

Changes in tax slabs proposed in Budget 2017: 

#Propose to reduce existing rate of taxation of those with income between 2.5 lakh to 5 lakh from 10% to 5%

#A single one-page form for filing IT returns for taxable income up to 5 lakh rupees

#Surcharge of 10% for those whose annual income is Rs 50 lakh to 1 crore

#15% surcharge on incomes above Rs 1 crore to continue

#Zero tax liability for up to Rs 3 lakh and all other taxpayers will get benefit of Rs 12,500 for all classes above Rs 5 lakh

“We are committed to make our tax rates reasonable, tax administration fairer and tax base wider,” Jaitley said. 

#Budget2017 : Reduction in Individual Income Tax pic.twitter.com/blZJts5mJG

— MIB India (@MIB_India) February 1, 2017 

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Income Tax slab Financial Year 2017-18

Income upto Rs. 2,50,000 - Nil

Income between Rs. 2,50,001 - Rs. 500,000 - 5% of Income exceeding Rs. 2,50,000 (Zero tax liability for up to Rs 3 lakh)

Income between Rs. 500,001 - Rs. 10,00,000 - 20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000 - 30% of Income exceeding Rs. 10,00,000 (Additional 10% surcharge annual income is Rs 50 lakh to 1 crore; 15% surcharge on incomes above Rs 1 crore to continue)

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Income Tax slab for Financial Year 2016-17

Income upto Rs. 2,50,000 - Nil

Income between Rs. 2,50,001 - Rs. 500,000 - 10% of Income exceeding Rs. 2,50,000

Income between Rs. 500,001 - Rs. 10,00,000 - 20% of Income exceeding Rs. 5,00,000

Income above Rs. 10,00,000 - 30% of Income exceeding Rs. 10,00,000 

Figures of Tax Collections #BudgetForBetterIndia pic.twitter.com/N6zGtguUIc

— Ministry of Finance (@FinMinIndia) February 1, 2017

Read | Highlights of Union Budget 2017

Full Coverage: Union Budget 2017-18 | Full Coverage: Budget Session of Parliament