Budget time always comes with serious speculations and 2017 is no different. The nation always awaits eagerly for the revised Income Tax Slabs, and every year the budget seems to bring happiness for some and disappoint for others. But, whatsoever be the scenario is, the nation accepts it by considering the long run profitability proposition towards the country.
This year, the budget has been framed in favor of the mid-income population, ensuring the availability of the substantial amount of disposable income. For instance, a salaried person within the income bracket of 5 - 50 Lacs may be entitled to save additionally up to INR. 12,500, as compared to the previous year.
Those who are within the income bracket of 3 lakhs need not pay any tax as there is a tax rebate of INR 2500 for individuals earning an income up to 3.5 lakhs p.a.
Also, individuals earning up to 4.5 Lacs have the option to reduce the tax liability to zero by investing 1.5 lakhs u/s 80C.
Below featured the table, which provides the better picture.
|3 Lakhs Income|
|F.Y. 2016-17||F.Y. 2017-18|
|0 - 2,50,000||0||0|
|2,50,001 - 5,00,000||5,000||2,500|
|5,00,001 - 10,00,000||0||0|
|Total Tax before cess||5,000||2,500|
|Rebate u/s 87A||5,000||2,500|
|Tax to be paid after rebate||0||0|
|5 Lakhs Income||15 Lakhs Income|
|F.Y. 2016-17||F.Y. 2017-18||F.Y. 2016-17||F.Y. 2017-18|
|0 - 2,50,000||0||0||0||0|
|2,50,001 - 5,00,000||25,000||12,500||25,000||12,500|
|5,00,001 - 10,00,000||0||0||1,00,000||1,00,000|
|Total Tax before cess||25,000||12,500||2,75,000||2,62,500|
The above tabular presentation portrays a snapshot of how the revised budget of 2017 has been crafted to provide a better financial stability for the mid- income group. Since the majority of the tax - paying population belongs to this income bracket, this budget will definitely be a financial assistance to upgrade their present standard of living and we can optimistically look forward towards a much financially progressive India now.