Union Budget 2017: Income Tax rate reduced, slabs altered

To much joy of tax payers in the lower brackets of income tax, Finance Minister Arun Jaitley has relaxed the chargeable rates.

Personal income tax in Rs 2.5 lakh - 5 lakh bracket has been reduced to 5 per cent from 10 per cent.

Jaitley further announced that annual income up to Rs 3 lakh will be exempt from income tax.

Earlier, the tax slabs had caps at annual income of Rs 2.5 lakh, Rs 5 lakh and Rs 10 lakh attracting income tax of 10 per cent, 20 per cent and 30 per cent respectively.

Those with annual income between Rs 50 lakh to Rs 1 crore will be levied a surcharge of 10 per cent.

The 15 per cent surcharge on incomes above Rs 1 crore will continue to be charged.

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