Here is a quick look at the Income Tax changes in Union Budget 2017-18 for individuals:
Personal Income Tax Changes In Union Budget 2017-18
1) The existing rate of taxation for individual assesses between an income of Rs. 2.5 lakh to Rs. 5 lakh will be reduced to 5% from the present rate of 10%.
2) A surcharge of 10% of tax payable on categories of individuals whose annual taxable income is between Rs. 50 lakh and one crore, will be levied.
3) The existing surcharge of 15% of tax on people earning more than Rs 1 crore will continue. This is likely to give additional revenue of Rs. 2700 crore.
4) A simple one-page form to be filed as Income Tax Return will be made for the category of Individual having taxable income up to Rs. 5 lakh other than business income.
5) Also, a person of this category to file 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 transactions.
6) Arun Jaitley appealed to all citizens of India to contribute to Nation Building by making a small payment of 5% tax if their income is falling in the lowest slab of Rs. 2.5 lakh to Rs. 5 lakh.
7) The Finance Minister further announced that in line with an exemption available to the Prime Minister’s Relief Fund and certain other funds, the income of the Chief Minister’s Relief Fund or the Lieutenant Governor’s Relief Fund shall be exempted from tax.