Relief for the common man! Income tax for people earning Rs 2.5 lakh-Rs 5 lakh reduced to 5%

Finance Minister Arun Jaitley rolled out the Budget 2017, which focussed mainly on the poor and recovery.

The Prime Minister Narendra Modi-led Indian Government was looking to soothe pains of the common man after the demonetisation burns and the finance minister announced few tax concessions for the common man.

While announcing the tax measures, Jaitley said the income tax rate for people earning income between Rs 2.5 lakh and Rs 5 lakh will be 5%. Presently, it is at 10%.

Also, the FM has levied a surcharge of 10% on people earning an income between Rs 50 lakh and Rs 1 crore. Also, 15% surcharge on income above Rs 1 crore will continue.

“We are committed to make our tax rates reasonable, tax administration fairer and tax base wider. We are largely a tax non-compliant society and the burden of tax evaders falls on honest tax payers,” said Jaitley, while presenting the Budget 2017-18.

He said the growth rate in advance tax for personal income in last three quarters in current year is at historic high of 34.8% due to government’s efforts.

Jaitley also announced one page I-T return form for individuals with less than Rs 5 lakh income.

Also, the net revenue loss on direct tax proposals amounts to Rs 20,000 crore and the net tax revenue grew by 17% in 2015-16.