Taxation takeaways from Union Budget 2017
Q. What is the tax slab for zero tax rate?- Published on 03 Feb 17a. Upto INR 3 lakhs
b. Between INR 5 and 10 lakhs
c. Between INR 3 and 5 lakhs
d. None of the above
ANSWER: Upto INR 3 lakhs
FM Arun Jaitley, per Union Budget 2017, presented these taxation reforms.
The Fresh Tax Slabs proposed in Budget 2017
| Tax Slab | New Tax Rate |
| Up to 3 lakhs | No Tax |
| Between 3 and 5 Lakhs | 5 percent |
| Between 5 and 10 lakhs | 20 percent |
| Above 10 lakhs | 30 percent |
Key Highlights- The Individual tax rates were cut. On income from INR 2.5 lakh to 5 lakh reduction was to 5 percent instead of 10 percent.
- 0 percent tax liability on income approximating INR 3 lakh.
- 10 percent surcharge on persons with income between INR 50 lakh to 1 Crore.
- 15 percent surcharge on persons with income of INR 1 crore and higher.
- No cash transaction allowed beyond INR 3 lakhs or higher, to reduce black money
- Holding period for long-term capital gains for immobile assets reduced from 3 to 2 years. The base year for indexation to be 2001.
- A single one-sheet form for filing IT returns for income which can be taxed up to INR 5 lakh rupees except for businesspersons.
- Time period of revising tax return to be lowered to 12 months
- Income tax changes put in place for small companies with an annual turnover of INR 50 crore. They will now to pay 25 percent rather than 30 percent and save 5 percent
- Maximum amount of cash donation political party can receive from an individual to be INR 2000 rupees from a single source.
Benefit of New Tax system| Income | Earlier Tax | Proposed Tax | Saving |
|---|
| INR 2.5 lakhs | INR 0 | INR 0 | INR 0 |
| INR 3 lakhs | INR 5000 | INR 0 | INR 5000 |
| INR 5 lakhs | INR 25000 | INR 12500 | INR 12500 |
| INR 6 lakhs | INR 35000 | INR 17500 | INR 17500 |
