The biggest event that has taken place on the day of Vasant Panchami this year 2017 is the Union Budget for FY2017-18. The much awaited budget has finally announced by the honourable Finance Minister Mr. Arun Jaitley on 1st of February 2017. The main agenda of the budget this year’s budget is to boost up the standard of living of the common people.
After the demonetisation has taken place the entire nation was looking at the budget as the economy has drastically changed off late after 8th November 2016. Mostly experts and the scrutinisers were waiting for the income tax slabs to be announced by the FM.
This year according to the budget the tax payers will dance in joy, especially those who belong to lower slabs of taxation. First of all the minimum annual income to be taxed has risen from 2.5 Lac to 3 Lac in a year.
- Now salaried people who are earning 3 Lac or less in a year will not have to pay income tax. Those who earn more than that will also be benefitted as the rate has been reduced by 50%.
- The lower slab of the income tax was from Rs. 2.5 Lac to Rs. 5 Lac annually. Now as per the budget 2017-18, the slab will be Rs. 3 Lac to Rs. 5 Lac.
- According to the earlier year the tax rates on the income slabs were 10%, 20% and 30% respectively. This year it has been modified and the tax rate have reduced to 5% from 10% for the lower income slabs.
- According to the FM most of the tax burdens are kept on salaried people only. This decision has made to lowering down the burden from them. From now onwards the burden will be shifted to high income group.
- In last few months after demonetisation happened many a people have surrendered their real income and to the much extent the government has successfully managed to pull doewn the rate of tax evasion.
- The surcharge levied on the people who earn Rs. 50 Lakh to Rs. 1 Cr will be charged as 10% per annum. The rate has been reduced too here.
- On the other, people who are earning more than 1 Cr in a year will have to pay surcharge of 15% of the total income as it was levied earlier.
- There is no change made in the tax rates for the annual income group Rs. 5 Lac to Rs. 10 Lac and the income group more than Rs. 10 Lac. The rates are same as before that is 20% and 30% respectively.
- Income tax rates have also been reduced for the entrepreneurs and small business. SMEs will also get benefitted after the new tax rate policy announced by the FM Mr. Jaitley.
- According to the budget 2017-18 those who have annual turnover of 50 Cr will also be benefitted as the tax rate is reduced to 25% from 30% till now. Companies and businesses across the nation that have less than or equal 50 Cr turnover will get 5% tax benefits from now onwards.
- There is also good news for new and emerging entrepreneurs as well. There will be 3 years tax holiday for the start-ups in the nation. According to the budget start ups that will start from 2017 will not be needed to pay any income tax until 2020.
- As promised by the Finance Minister honest tax payers will not be suffered during this FY2017-18. So the tax rates for the salaried people in the lower slab have been reduced so that the burden gets lighter for the salaried people.
