Impact of Budget 2017 on personal income tax: Who pays more, who pays less and by how much or how less?
Yesterday we see how much changes have in tax slab
and the impact of those changes. Here we will discuss who will pay less personal
income tax and who will pay more personal income tax following the finance
minister’s personal tax proposals in Budget 2017. Once the FM’s proposals of
Budget are implemented:
1. A person with taxable income (after deductions such as Section 80C and Etc.) of Rupees 3.5 lakh will pay a tax of Rupees 2575 as against Rupees 5150 payable earlier.
2. Persons with taxable income or earnings over Rupees 5 Lakh up to Rupees 50 Lakh will pay Rupees 12875 less (including the cess saved), according to EY.
1. A person with taxable income (after deductions such as Section 80C and Etc.) of Rupees 3.5 lakh will pay a tax of Rupees 2575 as against Rupees 5150 payable earlier.
2. Persons with taxable income or earnings over Rupees 5 Lakh up to Rupees 50 Lakh will pay Rupees 12875 less (including the cess saved), according to EY.
3. However, individuals with taxable income over
Rupees 50 lakh up-to Rupees 1 crore will be paying a flat surcharge of 10% on
the total tax payable by them. For example, an individual earning gross total
income of Rupees 60 lakh will pay (after availing tax deductions as assumed in
the table) Rupees 145,024 additional tax due to the surcharge. As shown in the
table a person with gross total income of Rupees 60 lakh who was paying tax of
Rupees 1,591,865 would now be paying Rupees 1,736,889 (after availing deduction
and application of surcharge and cess).
4. Those with income over Rupees 1 crore would
continue to pay the surcharge of 15% but would get the meagre benefit of saving
Rupees 12875 (including saving of cess but excluding the saving on surcharge).
For example, a person with gross total income of Rupees 1.2 crore will pay
(after availing deductions) Rupees 3,965,706 as taxes including surcharge and
cess as against Rupees 3,980,512 payable earlier.
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