Here is how this Budget is going to impact your personal income tax. Here you can get an idea about your taxes and who will pay less and who will pay more.
The moment this Finance Minister’s proposed Budget 2017 are implemented:
1.From Rs 3.5 lakh to Rs. 5 lakhs:
A person who is earning Rs. 3.5 lakes had to pay Rs. 5,150 as the tax but after the implementation of this Budget, he/she will have to pay a tax of Rs. 2,575 only.
2. Over Rs. 5 lakes to Rs. 50 lakes:
A person who’s earning is over Rs. 5 lakes up to Rs. 50 lakes will pay Rs. 12,875 less (including the cess saved), according to EY.
3. From Rs. 50 Lakes to Rs. 1 crore:
A person with taxable income over Rs 50 lake up to Rs 1 crore will be paying a flat surcharge of 10% on the total tax payable by them. For example, if a person is earning the gross total income of Rs. 60 lakes will now have to pay (after availing tax deductions as assumed in the table) Rs 1,45,024 additional tax due to the surcharge. As shown in the table, the person with the gross total income of Rs 60 lake who used to pay the tax of Rs 15,91,865, now will have to pay Rs 17,36,889 (after availing deductions and application of surcharge and cess).
4. Over Rs. 1 crore:
A person with the gross income of Rs. 1 crore will continue to pay 15% of hie/her income as surcharge but will get a meager benefit of saving Rs. 12,875 (including saving of cess but excluding the saving on surcharge). For example, if a person is earning a gross income of Rs. 1.2 crore was paying Rs. 39,80,512 will now have to pay (after availing deductions) Rs 39,65,706 as taxes, including surcharge and cess.