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For administering the country, the government generates money through different channels. India follows a system of charging taxes on the income earned by individuals. <keyword id="6354751" type="UNKNOWN" weightage="20" keywordseo="income-tax">Income tax</keyword> is one of the chief revenue sources of a country’s governance. Hence, income tax is the most common topic of every citizen in the country. Here we discuss how income tax is calculated in India. Income tax slabs To know how income tax is calculated in India, you must first know about the income tax slabs. Income Tax Slab is the kind of parameter applied by the Income Tax Department in India to decide how taxes are levied to different individuals and non-individuals. Year on year, the tax slab whether revised or continued is announced as part of the Union Budget. Tax Slabs Overview for individuals (male and female) <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income Range </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of Tax </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income up to 2,50,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 2,50,001 to Rs. 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">5% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 5,00,001 to Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 12,500 + 20% of the income that exceeds Rs. 500,000. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Above Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 1,12,500 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> Tax Slabs Overview for senior citizens in the age group 60 to 80 <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income Range </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of Tax </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income up to 3,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 3,00,001 to Rs. 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">5% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 5,00,001 to Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 10,000 + 20% of the income that exceeds Rs. 500,000. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Above Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 1,10,000 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> Tax Slabs Overview for senior citizens in the age group above 80 <table style="border-width: initial; border-style: none;"></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income Range </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rate of Tax </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Income up to 5,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Nil. </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 5,00,001 to Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">20% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Above Rs. 10,00,000 </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:0pt 5.4pt 0pt 5.4pt;">Rs. 1,00,000 + 30% of Income that exceeds Rs. 10,00,000. </td></tr></tbody></table> New changes The Union Budget 2019 – 20 has announced a revision that allows a full tax rebate for income that is up to Rs. 5 lacs under Section 87 A. This change lifts up the existing tax slab. Calculation of income tax Taxable income of individuals is worked out based on several factors including tax slab of the individual or entity, the different kinds of deductions applicable to the concerned tax payer, the taxes already paid including advance tax and tax deducted at source (TDS). How to know the income tax payable? In the first slab, know your income tax slab. Work out all the deductions applicable in your case. For example, deduction can be claimed for investment in life insurance for premiums up to Rs. 1.5 lacs. Under Section 80C, you can also claim deduction for investments in PPF (Public Provident Fund), NSC (National Savings Certificate) and other instruments like home loan principal repayment. Section 80 D enables a deduction for investments in health insurance plans up to Rs. 25,000 for the individual and his or her family and up to Rs. 25,000 for parents aged above 60 years. Section 24 enables deduction on home loan interest up to Rs. 2 lac. These deductions can help lower the overall tax outgo. Filing <keyword id="6374875" type="UNKNOWN" weightage="20" keywordseo="itr">ITR</keyword> For individuals making less than Rs. 2.5 lacs per annum, it is not compulsory to file income tax returns. However, if you have a PAN number, experts advise you to file income tax returns even when you have an income below the taxable threshold. In this case, you can file a Nil return.

How Income Tax Is Calculated

<ul><li>The Indian government just proposed modifying the tax slabs, allowing for full tax rebate on incomes up to ₹500,000. </li><li>It’s a populist move in the interim-budget, also termed the ‘election budget’. </li><li>The announcement could potentially prove to be controversial once the Direct Tax Code Report comes out on February 28.</li></ul>The middle-class in India has been hit hard by several indirect taxes, rising prices, and income hasn’t nearly caught up. Since today’s budget was an interim budget, tax breaks and policy changes weren’t expected, but realignment of the tax slabs was on many wish-lists. The Indian government has announced relief for individual middle-class taxpayers extending the non-taxable slab upwards to ₹500,000. "The benefit will be to only those taxpayers whose total income doesn’t exceed ₹500,000. The moment it exceeds ₹500,000, tax will start from ₹250,0000 at 5% up to ₹500,000 and 20% from ₹500,000 to ₹1 million," according to Ved Jain, former president of the Institute of Chartered Accountants of India. Piyush Goyal, the interim finance minister who presented the budget, also clarified that even people will gross income of upto ₹650,000 may not be required pay any income tax if they make investments in provident funds, specified savings and insurance etc. Goyal added that this move will allegedly provide tax benefit of ₹185 billion to an estimated 30 million Indian middle-class taxpayers. Essentially, you won’t have to pay any tax if you have ₹7.5 million tucked away in fixed deposits and no other income because you'll only be earnings ₹450,000 a year assuming an interest rate of 6%. It’s an apt populist move by the Modi government considering that they fell short on their promises of increasing employment from 2014 and demonetisation disrupted the economy. Not the first time In 2014 budget, the minimum tax exemption limit was raised from ₹200,000 to ₹250,000. Along with that, the limit under 80C was hiked by ₹50,000 to ₹150,000. - so essentially, individuals can reduce up to ₹150,000 from their total taxable income. The new tax slabs In its pre-budget memorandum, the Confederation of Indian Industry (CII) had suggested that the tax rate should be zero from income up to ₹500,000, while 10% tax should be levied on income upto ₹1 million and 20% on income up to ₹2 million and 25% on income beyond ₹2 million. Cuts in income-tax rates have invariably resulted in higher revenues in the past, and there is no reason why they should not generate a similar response in the future. India has generally been a non-compliant society, where avoiding and evading tax plague the economy. A tax cut is a temporary incentive for both since it drives down the incentive to avoid compliance. Introducing new tax slabs also puts more money in hands of the taxpayers increasing consumption demand. The requirement for borrowing goes down which, ideally, results in interest rates going down. The new tax slabs may have appeased the country but the Direct Tax Code Report is coming up on February 28 that could quickly turn the tables on the government.

No tax proposed on annual income up to ₹500,000

The Prime Minister Narendra Modi-led government will present the union budget for 2016-17 on February 29. 
 
The pre-budget consultations are being also held in a bid to formulate policies. 
 
Meanwhile, the National Association for Software and Services Companies (NASSCOM) says direct and indirect taxes hurt startups and the industry body has asked for tax exemptions for startups. 
 
NASSCOM, in pre-budget recommendations, has asked the finance ministry to weed out taxes, including minimum alternative tax, angel tax as these hurt startups. 
 
"Policy regulations like ease of compliance, reliance on self-certification instead of audits, tax exemptions for startups will allow entrepreneurs to devote their time, energy and resources to build upon their innovative ideas," said R Chandrashekhar, president of NASSCOM. 
 
The industry body also wants exemption from capital gain tax on income from sales of startups.

India to present Union Budget on Feb 29

The Union <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">budget 2019</keyword>, which will be an interim one, has triggered a lot of expectations among the common people. Looking back at the past five budgets by the Finance Minister Arun Jaitley, we find a lot of changes in the salary structures and the annual tax outgo. For instance, the 2014 budget raised the personal income tax exemption limit from ₹2 lakh to ₹ 2.5 lakh. Also there was an increase in the investment limit under Section 80C after a decade by ₹ 50,000. The next two budgets that followed increased the tax outgo of super wealthy individuals. In 2017, income tax rate was halved for the ₹2.5 – ₹5 lakh slab. The last budget brought the standard deduction once more. Tax sops still top the wish list of any common man, and the government is expected to give in this time to woo voters. According to Anirudha Taparia, IIFL Wealth Management’s Executive Director, while the government will stick to prudence, the balance will tilt in favor of populist measures designed to assuage restless voters who are currently sitting on the fence. What the common man could expect from budget 2019 There are strong hopes the individual taxpayer’s income tax exemption limit will be lifted from ₹2.5 lakhs to ₹5 Lakhs. There are strong demands to lift up the maximum deduction limit under Section 80C. Talking on this, Founder and CEO of Cleartax Archit Gupta <a href="https://www.businesstoday.in/budget-2019/news/how-budget-2019-is-likely-to-benefit-individual-taxpayers/story/310441.html">writes</a>, "The government must consider revising this limit, the revision must at least accommodate for inflation. Perhaps raising to ₹2 lakh from the present ₹1.5 lakh would be impactful. Any such hikes will help individual taxpayers to invest in various tax saving avenues available under 80C and save on taxes." Additionally, there is demand from industry chambers that the tax slabs will need some tinkering. As part of its pre-budget recommendations, the CII pressed for bringing down the highest personal income tax slab from the present 30% to 25%. FICCI has wished for a revision in the tax slab for the taxpayers suggesting that the 30% rate will be applied only for those making an income beyond ₹20 lakh per year. Another issue in the past was standard deduction limit. Though the government had announced a standard deduction of ₹40,000, the salaried tax payers could not be happy as the transport allowances and medical treatments were scrapped. Hence some experts want it to be increased to ₹75,000. There could also be some real estate sops in the form increase in the exemption limit for interest and principal on housing loans which would be in addition to the exemption given under 80C for principal repayment. Recently, the New Pension Scheme (NPS), also called as the National Pension Scheme, was tweaked to bring an increase in the center’s contribution to the corpus fund to 14% from the present 10% and tax exemptions on withdrawals up to 60%. Once passed, the Finance Act 2019 will see them taking effect.

India’s interim budget and the expectations from the ‘common man’

Mumbai, Feb 1 () The Sensex logged its biggest single-day plunge in more than a decade on Saturday after the Union Budget failed to live up to market expectations of growth-boosting measures and fiscal discipline.
 The benchmarks, which started on a shaky note, tanked soon after Finance Minister Nirmala Sitharaman pegged the fiscal deficit at 3.8 per cent for the current fiscal, compared to the earlier target of 3.3 per cent of GDP.
 Presenting the Union Budget for 2020-21 in Parliament, Sitharaman also proposed lower income tax slabs for those foregoing various exemptions, and removed dividend distribution tax on companies, effectively shifting the tax burden to the recipients.
 Nosediving nearly 1,275 points from the day's high, the 30-share BSE Sensex ended 987.96 points or 2.43 per cent lower at 39,735.53.
 This was the benchmark's biggest drop since October 24, 2008, when it had plummeted 1,070.63 points, and the fourth biggest fall overall.
 On similar lines, the 50-share NSE Nifty plunged 300.25 points or 2.51 per cent to close at 11,661.85.
 Investor wealth, measured in terms of value of all listed shares on BSE, plunged by Rs 3,46,256.76 crore to reach Rs 1,53,04,724.97 crore.
 Since the last Budget presentation in July 2019, the Sensex has gained 222.14 points or 0.56 per cent, while the Nifty slumped 149.30 points or 1.26 per cent.
 Analysts said income tax slab rejigs stoked fears of declining inflows in tax-saving investment avenues, while the proposed transfer of dividend distribution tax to investors added to the negative sentiment.
 "The lack of major growth boosting measures in itself is negative for the equity market. The new income tax regime would also be negative for tax exempt equity savings schemes. Recasting of dividend taxation norms also seem to be on the balance negative for most domestic equity investors. Overall, the budget seem to be negative for the equity market," said Sujan Hajra, Chief Economist and Executive Director, Anand Rathi Shares &amp; Stock Brokers.
 ITC was the top laggard in the Sensex pack, tanking 6.97 per cent, after the Budget hiked the excise duty on cigarettes.
 L&amp;T, HDFC, SBI, ONGC, ICICI Bank and IndusInd Bank also lost up to 5.98 per cent.
 On the other hand, TCS rallied 4.13 per cent, followed by HUL, Nestle India, Tech Mahindra and Infosys.
 In her second Budget presentation, the finance minister said certain government securities will be open for foreign investors, adding that the Centre plans to increase investment limit for FPIs in corporate bonds from 9 per cent to 15 per cent.
 Abhinav Gupta, President, Capital Market, Share India Securities, said, "We are extremely disappointed with budget. No significant announcement for industry or consumers. Name sake changes in income tax slabs only to create political mileage that may not lead to any significant changes in growth prospects in near term.
 "The FM could have made several key initiatives to spur investment and domestic consumption to address the pain points of the economy. While this budget could have focused on capital creation for nationals as well."
 Sectorally, BSE realty index plunged 7.82 per cent, followed by capital goods, industrials, finance, bankex and metal.
 IT and teck ended with gains of up to 1.41 per cent.
 "DDT removal is good as it increases dividends received in the hands of the taxpayer. However, such receipts now are taxable in their hands. Those above 20 per cent tax slab will now face more tax on their dividend income," said Archit Gupta, Founder, and CEO, ClearTax. ANS ABM
ABM

Budget blow for D-St: Sensex sinks 988 pts; Rs 3.46 lakh cr investor wealth wiped off

The <keyword id="3261283" type="UNKNOWN" weightage="20" keywordseo="Economic-Survey-2016">Economic Survey 2016</keyword> has set the tone of the economy and has also given us clues how the <keyword id="2783177" type="UNKNOWN" weightage="20" keywordseo="Budget-2016">Budget 2016</keyword> is going to be on February 29. 
 
One of the major lookouts of the Budget 2016 will be the tax slabs and the Economic Survey 2016 suggested that tax exemption thresholds should not be raised. 
The Economic Survey 2016 called for expanding the base of tax payers. 
 
Despite the number of tax returns filed picking up from mid-1980 onwards, nearly 85 percent of the economy remains outside the tax net. Pointing out that just 5.5 percent of earning individuals are in the tax net, translating to a ratio of about 4 percent of tax payers to voters, the survey says this ratio should be raised to a desirable estimate of about 23 percent. It says that taxpaying and political participation are the two important accountability mechanisms wielded by citizens. 
 
Making a study of the data since Independence, the survey pointed out that the exemption thresholds have been raised much more rapidly than underlying income growth resulting in a widening of the wedge between average income and threshold limit. 
 
Bringing more and more people into the tax net via some form of direct taxation will help in realizing the promise of Indian democracy, the Economic Survey stated. 
 
Currently, for a resident individual below 60 years of age, income up to Rs 2,50,000 is exempt from tax, income from Rs 250,001 to Rs 500,000 is taxed at 10%, from Rs 5,00,001 to Rs 10,00,000 at 20% and above Rs 10 lakh at 30%. 
 
For residents aged 60 years or more but less than 80 years, income up to Rs 3 lakh is exempt from income tax and income from Rs 3,00,001 to Rs 5 lakh is taxed at 10% plus cess. Rest of the tax slabs, rates and cess are the same as for residents below 60 years.

No change in tax slabs in Budget 2016!

Budget has nothing for Maharashtra, says ruling alliance
(Eds: with additional quotes)
Mumbai, Feb 1 () The ruling Shiv Sena, NCP and
Congress on Saturday termed as "disappointing" the Union
budget, claiming that it did not offer much to the "highest
tax-payers" Mumbai and Maharashtra.
Opposition BJP in Maharashtra hailed the Budget 2020-
21, saying it strengthens the economy and makes provision for
the welfare of all.
"The budget has left Maharashtra and Mumbai the most
disappointed. Mumbai gives highest tax, Maharashtra gives
highest tax to the Centre, but they were completely ignored,"
Revenue Minister and state Congress chief Balasaheb Thorat
told reporters here.
The budget presented by Union finance minister Nirmala
Sitharaman was "old wine in new bottle", he said.
Thorat also questioned the Union government's claim
that farmers' income would be doubled by 2022.
The agricultural growth rate should be 11 per cent to
achieve this goal, while the current rate is not moving beyond
2 per cent, the Congress leader said.
NCP MP Supriya Sule said, "Sensex plunged when the
budget was being presented in the House. It shows the budget
makes no sense."
 The Budget has introduced new slabs and reduced the
income tax rate for different slabs for individual income of
up to Rs 15 lakh per annum, if a taxpayer opts for foregoing
exemptions and deductions.
Referring to it, Shiv Sena spokesperson Manisha
Kayande said there was no clarity about the option offered.
"Who would not like to get a tax benefit? If a person
is investing in LIC or mediclaim, why would the person not opt
for tax benefit? People basically make these investments for
tax benefit apart from getting insurance (cover). So there is
no clarity on this," she said.
The Sena leader also expressed concern over "closing
down" of government-owned enterprises like Air India.
"It is a major drawback. Plus, they are banking
completely on LIC. Almost 290 million people invest in LIC.
That means the government is eying public money," she added.
Water Resources Minister and NCP leader Jayant Patil
said the budget offers nothing to give a momentum to the
economy.
"Farmers too have got nothing from the budget...the
budget is mere 'jumlebaazi' (gimmick)," the former Maharashtra
finance minister said.
NCP spokesperson Mahesh Tapase accused the government
of "over-commitment and under-delivery" leading to loss of
faith of investors, industry and consumers.
Tapase said the current gross GDP figures do not
support the government's claim about the target of USD 5
trillion economy.
Former Maharashtra chief minister Ashok Chavan said
the budget ignores the burning issue of unemployment and the
Union government was making no effort to increase purchasing
power of the poor and middle classes.
BJP leader and former chief minister Devendra Fadnavis
hailed the budget as "progressive and reform-oriented", saying
it lays the foundation of a "new India".
"The 2020 #JanJanKaBudget lays the foundation for the
journey of Bharat to Navbharat in this new decade, of an even
more developed and modern India with a greater speed ! Kisan
Rail, Krishi UDAN are path breaking steps for our farmers and
will fulfill the ASPIRATIONS of INDIA!" Fadnavis tweeted.
Maharashtra BJP chief Chandrakant Patil said the
budget takes care of all sections of society including
farmers, women, the youth, tribals, traders, employed and
others in line with Prime Minister Narendra Modi's 'Sab Ka
Sath, Sab Ka Vikas, Sab Ka Vishwas' (inclusive growth with the
trust of all) slogan. ENM NSK
KRK KRK

BUD-LD MAHA-PARTIES

<ul><li>There is no change in the <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">income tax slabs</keyword> for the common citizen but Union Budget has introduced savings from home loans and more tax on the super rich. </li><li>Housing loans will be now be deductible for another ₹1.5 lakh. </li><li>Incomes between ₹2-5 crore will face an effective tax impact of 3% and incomes above ₹5 crore will have to pay another 7%.</li></ul> During the interim budget, the Indian government already extended the non-taxable slab upwards of ₹500,000. Nirmala Sitharaman, the current Minister of Finance, thanked taxpayers for being responsible and for their due diligence but made no announcement to change the income tax slabs any further. 
 <div type="image" title="PG - TAX SLABS" msid="70088620" hostid="261"></div>



 However, she did announce an additional deduction of ₹1.5 lakh on housing loans bringing up the total deduction to ₹3.5 lakh. And the country’s super rich are going to be subject to higher taxes. If their income falls between ₹2-5 crores, they will be subject to an effective tax impact of 3%. Any income beyond ₹5 crores will have to pay another 7%. She highlighted that the revenue from tax has increased from ₹6.38 crores in 2013-14 to 11.37 crores in 2017-18, growing at a double digital rate every year. Going forward, the government aims to further simplify the process of paying taxes and applying greater transparency. Last time around, Piyush Goyal, the interim finance minister who presented the budget, also clarified that even people will gross income of upto ₹650,000 may not be required to pay any income tax if they make investments in provident funds, specified savings and insurance etc. Goyal added that this move will allegedly provide tax benefit of ₹185 billion to an estimated 30 million Indian middle-class taxpayers. Essentially, you won’t have to pay any tax if you have ₹7.5 million tucked away in fixed deposits and no other income because you'll only be earnings ₹450,000 a year assuming an interest rate of 6%. In 2014 budget, the minimum tax exemption limit was raised from ₹200,000 to ₹250,000. Along with that, the limit under 80C was hiked by ₹50,000 to ₹150,000. - so essentially, individuals can reduce up to ₹150,000 from their total taxable income. Cuts in income-tax rates have invariably resulted in higher revenues in the past, and there is no reason why they should not generate a similar response in the future. India has generally been a non-compliant society, where avoiding and evading tax plague the economy. A tax cut is a temporary incentive for both since it drives down the incentive to avoid compliance. Income tax slab for individual tax payers aged less than 60 years (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Income range per annum </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax rate </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 2.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 2.5 lakhs to Rs.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">5% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 5 lakhs to Rs. 10 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">20% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 10 lakhs to Rs. 50 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 50 lakhs to Rs. 1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 10% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Above Rs.1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% +15% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Rebate as per Section 87 (A) </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">100% tax rebate is allowed for a maximum value of Rs. 2,500 in case of resident individuals whose total income is not above Rs. 3.5 lakhs </td></tr></tbody></table> Income tax slab for senior citizens aged between 60 and 80 years (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Income range per annum </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax rate </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 2.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 2.5 lakhs to Rs.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">5% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 5 lakhs to Rs. 10 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">20% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 10 lakhs to Rs. 50 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 50 lakhs to Rs. 1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 10% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Above Rs.1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% +15% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Rebate as per Section 87 (A) </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">100% tax rebate is allowed for a maximum value of Rs. 2,500 in case of resident individuals whose total income is not above Rs. 3.5 lakhs </td></tr></tbody></table> Income tax slab for senior citizens aged above 80 years (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Income range per annum </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax rate </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 2.5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Up to Rs. 5 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">No Tax </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 5 lakhs to Rs. 10 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">20% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 10 lakhs to Rs. 50 lakhs </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">From Rs. 50 lakhs to Rs. 1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% + 10% surcharge + 4% cess </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Above Rs.1 crore </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% +15% surcharge + 4% cess </td></tr></tbody></table> Income tax slab for firms and domestic companies (FY 2018-19 AY 2019-20) <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Tax category </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Firms </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Domestic companies </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Turnover up to Rs. 50 crores </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">25% </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Turn over above Rs. 50 crores </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">30% </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Surcharges </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">If the total income exceeds 1 crore, 12% of tax is applied as surcharge </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">7% of tax if income exceeds 1 crore but is below 10 crore.10% of tax in case the income exceeds Rs. 10 crores </td></tr><tr><td style="border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">Cess </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">3% of tax + surcharge </td><td style="border-left:solid #eeeeee 0.75pt;border-right:solid #eeeeee 0.75pt;border-bottom:solid #eeeeee 0.75pt;border-top:solid #eeeeee 0.75pt;vertical-align:top;padding:6pt 4pt 6pt 4pt;">3% of tax + surcharge </td></tr></tbody></table>

Income tax changes: More savings on home loans and more tax on the super rich

After demonetisation, every class of citizens had big expectations—realistic or not—from the government to offer some sort of relief. However, <keyword id="6358021" type="PERSON" weightage="20" keywordseo="budget">Budget</keyword> 2017 has failed to meet most of the raised expectations. 
 
Below are the details of what different sections wanted and what they got in Budget 2017. 
 
<a href="http://www.businessinsider.in/this-is-what-budget-2017-had-in-store-for-startups/articleshow/56905882.cms">ALSO READ: This is what Budget 2017 had in store for startups</a> 
 
Individual taxpayers 
 
What you wanted: Minimum slab for personal income tax was expected to be raised by at least Rs 1 lakh. Slabs were also expected to be restructured by lowering tax on slabs above Rs. 5 lakh. 
 
What you got: Tax rate for individuals in the lowest income tax slab—Rs 2.5 lakh to Rs 5 lakh—to 5 per cent instead of 10 per cent. 
 
Corporates 
 What you wanted: <keyword id="6390789" type="COMPANY" weightage="20" keywordseo="Jaitley">Jaitley</keyword> was expected to cut corporate tax of 30 per cent by at least one percentage point as he has himself promised in his Budget speech in 2015 to reduce it from 30 per cent to 25 per cent in a phased manner over three years. Minimum Alternate Tax (MAT) on special economic zones was expected to be reduced to 10 percent in the upcoming Budget to boost investments. MAT rates have more than doubled from 7.5 percent in 2007 to 18.5 percent today. 
 
 What you got: MAT allowed to be carried forward for 15 years from 10 years now. Corporate tax was reduced to 25 per cent—but only for those with an annual turnover of up to Rs 50 crore. 
 
<a href="http://www.businessinsider.in/where-indian-start-ups-stand-globally-after-union-budget-2017-18/articleshow/56916586.cms">ALSO READ: Where Indian start-ups stand globally after Union Budget 2017-18</a> 
 
IT companies 
 What you wanted: Weighted deduction on <keyword id="73655" type="ORGANIZATION" weightage="20" keywordseo="Research-and-Development">Research and Development</keyword> (R&amp;D) and skill development expenses that are extended to many other sectors. 
 
What you got: Nothing. 
 
Youth 
 
What you wanted: Cheaper mobile phones and other electronic gadgets. More affordable education loans. More jobs. 
 
What you got: No immediate benefit but several schemes with long-term impact: schemes to promote skills and employment-linked training in the rural India; making school and college education more outcome-based; effective accreditation for colleges; and SWAYAM platform with at least 350 online courses. 
 
Banks 
 
What you wanted: Tax exemptions customers as well as vendors/merchants conducting digital transactions above a certain limit. More capital infusion. 
 
What you got: Increase in allowable provision for non-performing assets of banks from 7.5 per cent to 8.5 per cent. No additional capital infusion except Rs 10,000 crore under the ongoing Indradhanush scheme. 
 
Housing sector 
 
What you wanted: Higher income tax incentives for first-time home buyers. Infrastructure status to the housing sector. 
 
What you got: Affordable housing given infrastructure status. Tax relief to real estate developers on the unsold stock as a liability to pay capital gains will arise only in the year a project is completed. 
 
Mobile manufacturers 
 
What you wanted: A 10-year tax holiday for local mobile manufacturers. Exemption of duty on import of capital goods used 
 
 in the manufacturing of mobile handsets and components. 
 What you got: The government has proposed to impose a 2% special additional duty on populated printed circuit boards (<keyword id="6355595" type="COMPANY" weightage="20" keywordseo="PCB">PCB</keyword>) used for mobile phones, those which are imported into the country. In last year’s budget, the government had levied a 2% SAD on PCBs but later rolled it back after the industry said the ecosystem for local manufacturing of these components was not ready in India. 
 
The poor 
 
 What you wanted: The way The Economic Survey 2016-17 advocated universal basic income, there was an expectation that something similar will be offered in the Budget. Cheaper daily use goods. 
 
What you got: Nothing. 
 
The middle class 
 
What you wanted: Moving up of the lowest income-tax slab. More income tax exemptions on a home loan. Cheaper consumer durables. 
 
What you got: Tax rate for individuals in the lowest income tax slab—Rs 2.5 lakh to Rs 5 lakh—to 5 per cent instead of 10 per cent. 
 
<keyword id="624" type="ORGANIZATION" weightage="20" keywordseo="Women">Women</keyword> 
 
What you wanted: Lower interest on loans. Incentives for women entrepreneurs. 
 What you got: <keyword id="4127860" type="UNKNOWN" weightage="20" keywordseo="mahila-shakti-kendra">Mahila Shakti Kendra</keyword> will be set up with an allocation of Rs. 500 crores in 14 lakh ICDS Anganwadi Centres.

What you wanted vs. what you got in Budget 2017

<ul><li>The government has introduced new 'optional' tax slabs for individual taxpayers.</li><li>Instead of five different tax slabs, the new tax regime has seven tax slabs.</li><li>It also the lowers the tax for income between ₹12.5 lakh to ₹15 lakh from 30% to 25%.</li></ul>New tax slabs have been proposed by the Direct Tax Code panel to boost consumption and investment. The government hopes that increased purchasing power will push demand ahead of supply, incentivising firms to ramp up production which will reflect in GDP growth in the next financial year. The new tax slabs increase the minimum taxable limit from ₹2.5 lakh to ₹5 lakh. At the other end of the segment, anyone earning up to 15 lakh annually will be subject to 25% tax rate instead of 30%. However, the new tax slabs are only applicable to people who do not opt for exemptions under the tax regime -- including deductions under 80C of PF, LIP, standard deduction, LTC, house rent allowance, minor income exemption, interest deduction on home loans among others. Essentially, individual tax payers now have the choice to choose between the two tax regimes depending on their requirements. "The complex tax regime for taxpayers with the slabs rejig. With the optional new regime, taxpayers will have to evaluate what works better. Those committed to long term saving and investing via 80C may be discouraged and this may likely demotivate taxpayers from tax-saving linked investing," said Archit Gupta from Clear Tax. There will be no tax levied on annual income upto ₹5 lakh. However, if you cross that threshold tax will charged for income above ₹2.5 lakh. <table style="border-width: initial; border-style: none; width: 468pt; table-layout: fixed;"></colgroup></colgroup></colgroup></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Income </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Previous Tax Rate </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">New Tax Rate </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Up to ₹2.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nil </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2.5 lakh to ₹5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹5 lakh to ₹7.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹7.5 lakh to ₹10 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹10 lakh to ₹12.5 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹12.5 lakh to ₹15 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Above ₹15 lakh </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">30% </td></tr></tbody></table> The government’s move to stimulate the economy As companies look to increase output, job creation will go up or at least arrest job losses taking the pressure off of the country’s unemployment crisis. More jobs, would again, increase purchasing power resulting in a growth cycle. It could also increase the government’s burden On the flip side, experts expect lower tax rates to weigh on the exchequer. Tax revenue collection has often been criticized for being inefficient. However, the ultimate outcome depends on how the cycle of investment and economic growth plays out. Tax revenue could increase if the new tax cuts result in greater compliance over the next two to three years. This is also an attempt by the government to simplify the tax laws, which are known to be one of the most complicated in the world. See also: <a href="https://www.businessinsider.in/budget/news/budget-2020-allocates-6000-crore-for-bharatnet-to-connect-1-lakh-gram-panchayats/articleshow/73832949.cms">Budget 2020 allocates ₹6,000 crore for BharatNet to connect 1 lakh Gram Panchayats</a> <a href="https://www.businessinsider.in/budget/news/budget-2020-aayushman-bharat-allocation-to-eradicate-tuberculosis-by-2025-announced-by-nirmala-sitharaman/articleshow/73832769.cms">Budget 2020 aims to eradicate tuberculosis by 2025 using AI and ML to empower Aayushman Bharat</a> <a href="https://www.businessinsider.in/budget/news/budget-2020-nirmala-sitharaman-wants-nabard-to-geo-tag-cold-storage-facilities-to-make-them-more-efficient/articleshow/73832369.cms">Nirmala Sitharaman wants NABARD to geo-tag cold storage facilities to make them more efficient</a>

New income tax slabs 2020, income up to ₹5 lakh exempt

As the <keyword id="547606" type="ORGANIZATION" weightage="20" keywordseo="interim-budget">interim budget</keyword> approaches, there is widespread hope that the Modi government will change <keyword id="120700" type="PERSON" weightage="20" keywordseo="Income-Tax-slabs">income tax slabs</keyword>. Last year’s budget did not alter the income tax slabs in any way and the exemption limit and the income tax rates continued like before till date. Over the past interim budgets, the central governments awaiting the elections did not announce any major steps. Nevertheless, reports now suggest that the Modi government may break the convention this time in order to woo voters. It’s being widely speculated the government might double the income tax exemption threshold from the present Rs 2.5 lakh to Rs 5 lakh according to an IANS report. It is also possible that Jaitley might restore the tax-free status of the medical expenses and transport allowances, reported the news agency, quoting the government sources. As the PTI reports, raising the income tax exemption limit to ₹ 5 lakh per annum is one of the major demands that the Confederation of Indian Industry (CII). The industry chamber has also pressed to increase the deduction under 80C to Rs 2.50 lakhs which is believed to encourage more investments. Another suggestion made by the CII while expecting the interim budget is to bring down the highest personal income tax rate from 30% to 25% which will give room for exemptions towards medical expenses and transport allowances. If the income tax slabs are altered before releasing the Direct Tax Code report on February 28, the process may become contentious. The new revision anticipated is expected to make the income tax rates more progressive by bringing relief to the people in the 5% and 20% slabs, reported Mint earlier on May 14. As per the current tax slab, the income under Rs 2.5 lakh will be exempt from tax. Income between Rs 2.5 lakhs and 5 lakhs will invite 5% income tax and earnings between Rs 5 lakhs and 10 lakhs will attract 20% taxes while anything beyond 10 lakhs will be taxed at 30%.

You Searched For "tax slabs union budget" and got 11 results

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BI India Bureau

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BUD-LD MAHA-PARTIES

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Income tax changes: More savings on home loans and more tax on the super rich

Prabhjote Gill

What you wanted vs. what you got in Budget 2017

BI India Bureau

New income tax slabs 2020, income up to ₹5 lakh exempt

Prabhjote Gill

Here’s what people expect on income tax from the upcoming Indian budget

BI India Bureau

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