Union Finance minister Arun Jaitley, in his third budget for FY 2017-18 in the Lok Sabha today, announced a tax concession for those earning less than Rs.5 lakh in the form of reduced tax to 5% from 10% earlier. Similarly, small corporates with Rs.50 crore turnover will pay Rs.25% tax instead of 30% as it was in the FY2016-17.
Here are some major tax concessions announced for salaried and corporate class in the Union Budget 2017-18:
- Those earning Rs.2.5 lakh to 5 lakh pay only 5% Income Tax now.
- Those earning more than Rs.50 lakh individual income pay 10% surcharge.
- No increase or reduction in Service Charge which is at about 15%.
- No service charge if rail tickets are booked through IRCTC online.
- Small firms with turnover up to Rs 50 crore to pay 25% tax, instead of 30%.
- No cash transactions above Rs.3 lakh will be allowed.