After Demonetisation, Budget 2017 Has Lot Of Expectations Riding On It
Budget 2017 has a lot of expectations riding on it, especially post-demonetisation. The common man is expecting some relief in the form of reduced tax rates or enhanced tax slabs to soothe the discomfort caused by the demonetisation drive and for conscientiously backing the move by the Hon'ble Prime Minister to curb the menace of black money.
The tax an individual needs to pay every year is calculated on the basis of his/her taxable total income. The tax is calculated according to the income tax slabs announced by the government every year in the Budget.
The annual Union Budget is normally announced at the end of February. But this year, this important event has been preponed and the Union Budget 2017 will be presented by the finance minister in Parliament on February 1, 2017.
If we look in to the recent past, the tax rates have remained untouched barring some minor changes for the past few years.
The wished for changes in the tax slabs in the Union Budget for individuals are as follows:
1) In case of a resident/non-resident (who is less than 60-years-old at any time during the previous year):
| Income (Rupees in lakhs) | Tax rate | Income (Rupees in lakhs) | Tax Rate |
| Current rates | Proposed rates | ||
| Up to 2.5 | Nil | Up to 3 | Nil |
| 2.5 – 5 | 10% | 3 – 7.5 | 10% |
| 5 – 10 | 20% | 7.5 -15 | 20% |
| 10 and above | 30% | 15 and above | 30% |
| Income (Rupees in lakhs) | Tax rate | Income (Rupees in lakhs) | Tax rate |
| Current rates | Proposed rates | ||
| Up to 3 | Nil | Up to 5 | Nil |
| 3 – 5 | 10% | 5 – 7.5 | 10% |
| 5 – 10 | 20% | 7.5 – 15 | 20% |
| 10 and above | 30% | 15 and above | 30% |
| Income (Rupees in lakhs) | Tax rate | Income (Rupees in lakhs) | Tax rate |
| Current rates | Proposed rates | ||
| Up to 5 | Nil | Up to 7.5 | Nil |
| 5 – 10 | 20% | 7.5 to 15 | 20% |
| 10 and above | 30% | 15 and above | 30% |
| Slab rates | For individuals less than 60 years of age | Individuals more than 60 years but less than 80 years of age | Â Individuals more than 80 years of age |
| @10% | 45,000 | 25,000 | Nil |
| @20% | 1,50,000 | 1,50,000 | 1,50,000 |
| @30% | 60,000 | 60,000 | 60,000 |
| Total tax as per proposed rates | 2,55,000 | 2,35,000 | 2,10,000 |
| Total tax as per current rates | 3,35,000 | 3,30,000 | 3,10,000 |
| Savings | 80,000 | 95,000 | 100,000 |
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