Finally, the highly awaited third union budget 2016-17 is here. Finance Minister Arun Jaitley has announced the same in New Delhi today. According to the budget, the individuals who are having income less than or equal to Rs. 5 lakh under section 87A will get an increased tax rebate of Rs. 5000.
A resident individual presently can acquire a tax repayment of exactly 100 percent of the payable income tax or Rs. 2000, whichever is lower. This is under the current section with income up to or equal to Rs. 5 lakh. On increasing the amount by Rs. 3000, it is anticipated that over 2 crore taxpayers will be relieved now.
Apart from this, Arun Jaitley went for an increment of the surcharge on income tax for the persons receiving a salary of Rs. 1 crore to 15% from the existing 12%. As per the current scenario, individuals exempted from the tax include the ones who are HUF’s and residents below the age of 60 years. Persons ranging between Rs. 2,50,001 to Rs. 5,00,000 are taxed at 10%, while those between Rs. 5,00,000 to Rs. 10,00,000 are at 20% and higher than Rs. 10 lakh is at 30%, as per current income tax slabs and rates. A surcharge of 12% of income tax is charged above the income of Rs. 1 crore.
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