Finance Minister Arun Jaitley today proposed to reduce the tax rate for income up to Rs 5 lakh from the existing 10 per cent to 5 per cent while imposing 10 per cent surcharge on income between Rs 50 lakh and Rs 1 crore.
Following is the table of impact on individual on tax proposals:
Income (Individual tax payers) | Tax rate | Impact |
Up to Rs 2,50,000 | NIL | NIL |
Rs 2.50,001- Rs 5,00,000 | 5% | Rs 7,725 (savings) |
Senior Citizens (60 years but less than 80 years) | ||
Up to Rs 3,00,000 | Nil | Nil |
Rs 3,00,001 to Rs 5,00,000 | 5% | Rs 2,575 (savings) |
Senior Citizens (80 years and above) | ||
Up to Rs 5,00,000 | Nil | Nil |
Rs 5,00,001 to Rs 10,00,000 | 20% | Rs 7,725 (savings) |
(Surcharge of 10% on income of all individuals above Rs 50 lakh and less than Rs 1 crore and surcharge of 15 per cent on income above Rs 1 crore).
Revising tax returns
Finance Minister Arun Jaitley today proposed to reduce the time period for revising a tax return to 12 months from completion of financial year.
The Minister also proposed to reduce the time for completion of scrutiny assessments from 21 months to 18 months for Assessment Year 2018-19 and further to 12 months for Assessment Year 2019—20 and thereafter.
“Time period for revising a tax return is being reduced to 12 months from completion of financial year, at par with the time period for filing of return,” according to Union Budget 2017—18 presented by Finance Minister Arun Jaitley in Parliament.
In order to expand tax net, the Centre plans to have a simple one—page form to be filed as Income Tax Return for the category of individuals having taxable income up to Rs 5 lakh other than business income.
Also a person of this category who files 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 transaction, Jaitley said.