Budget 2017: Tax measures affecting every Indian

Last Updated: Wed, Feb 01, 2017 20:09 hrs
Income Tax (AFP Photo)

Budget 2017 saw Arun Jaitley emphasise the keenness Indians show in avoiding taxes.

There were 1.48 lakh bank accounts where more than Rs 80 lakh was deposited post demonetisation, he noted.

Even among tax payers, one crore out of the 3.7 crore people who filed tax declared less than Rs 2.5 lakh, he observed.

Of the 76 lakh people who declared more than Rs 10 lakh in income, 56 lakh are from the salaried class. . Jaitley observed this was in a country where 1.25 crore cars were been sold in the last 2 years.

He then went on to offer a few sops for the honest taxpayer. Here are his major announcements:

Income Tax:
1. Income tax for people with income in the 2.5 lakh to 5 lakh slab to be reduced to 5% instead of 10%. This will reduce their tax liability to half while all other tax payers above this slab will also be benefited in terms of lesser tax of Rs 12500 (maximum benefit) per individual.

2. Surcharge of 10% to be levied on individuals with income between Rs 50 lakhs to Rs 1 crore.

Also announced:
1. Income of Chief Minister's relief fund to be exempt from tax.
2. Penalty on accountant, registered valuer and merchant banker for furnishing incorrect information.
3. A penalty fee for delay in filing of return.
4. TDS of 5% not to be deducted for individual insurance agents if they certify their income to be below taxable limit.
5. Professionals in presumptive scheme to pay advance tax only in one instalment in March instead of four.
6. The time limit for revising a tax return reduced to 12 months. Also time limit for completion of scrutiny will be brought down to 12 months from Assessment Year 2019-20 onwards.

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