After introduction of Budget 2017, it has given Individual tax payers some significant relief for financial year 2017-18. We have presented below the scenario how the tax slabs for Individual taxation will change from finaicial year 2016-17 to financial year 2017-18.
|Annual Taxable Income||FY 2016-17||FY 2017-18|
|0 to 2.5 Lakh||NIL||NIL|
|2.5 to 5 Lakh||10% (Note1)||5% (Note1)|
|5-10 Lakh||25000 + 20% on amount over 5,00,000||12500 + 20% on amount over 5,00,000|
|10 Lakh||125000 + 30% on amount over 10,00,000||112500 + 30% on amount over 10,00,000|
Additional: Above tax liability will increase by 3% toward Education cess and Higher education cess and. 10 % surcharge if taxable income between Rs.50 L to Rs.1 Cr. And 15% surcharge if taxable Income exceed Rs.1 Cr.
Note 1: Tax rebate is reduced to Rs.2,500 per year for Taxpayer with income upto Rs.3.5 Lakh (earlier Rs.5 Lakh).
Due to combine effect of change in tax rate and rebate, an individual with taxable income of Rs.3.5 Lakh will now pay tax of Rs.2,575/- instead of Rs.5,150 earlier.
The above will also result in Nil tax for the person with taxable Income of Upto Rs.3 lakh
Comment you queries on Budget 2017 to know more.