Save over 50% tax if new income tax slabs are implemented in Budget of 2017
For the income between Rs 10 lakh to Rs 15 lakh, the tax rate is likely to be 20% as per the new proposal.
Your personal income tax might get reduced if Ministry of Finance acts on a proposal, Tarun Sharma of Zee Business reports.
BUDGET LIVE UPDATE: TRACK IT LIVE
ources told Zee Business that the finance ministry has proposed that no tax will be liable up to the income worth Rs 4 lakh. Currently, no tax is charged up to income of Rs 2.5 lakh per year.
Industry experts believe that Finance Ministry is mulling easing of income tax as demonetisation has impacted consumption and one of the ways to revive consumer spending is by leaving them with more money.
Lower income tax would mean more disposable income which in turn would lead to higher spending.
The impact of demonetisation is seen as a prime cause for the Government to give this rebate in income tax. .
Moreover, as per the proposal, the government likely to impose 10% tax on income between Rs 4 lakh to Rs 10 lakh in the new tax bracket. Currently, for the income exceeding Rs 2.5 lakh to Rs 5 lakh is liable for 10% tax.
For the income between Rs 10 lakh to Rs 15 lakh, the tax rate is likely to be 15% as per the new proposal. Presently, 20% is imposed on income between Rs 5 lakh to Rs 10 lakh.
Further, for the income between 15 lakh to Rs 20 lakh, 20% of tax will be charged. Currently, 30% tax rate is levied on income more than Rs 10 lakh.
Income tax for income over Rs 20 lakh may be fixed at 30%, the source said.
Given these new proposed tax slabs, if you earn Rs 4 lakh a year, you will pay no tax as against Rs 15,000 as per the current 10% tax slab for income up to Rs 5 lakh.
Similarly, if you earn Rs 7 lakh, your income tax would fall to Rs 30,000 from current Rs 65,000.
Salary of Rs 10 lakh a year would mean that your new tax liability would reduce to Rs 60,000 from Rs 1,25,000 as per current tax slab of 20% on income between Rs 5 lakh to Rs 10 lakh.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
02:01 PM IST