Following is the table of the impact of changes in income tax provisions proposed by Finance Minister Arun Jaitley in the Budget for 2016-17. This includes the following:
1)Tax relief of Rs 5,000 from existing Rs 2,000 on income between Rs 2.5 lakh and Rs 5 lakh.
2)Individuals with total income exceeding Rs 1 crore, surcharge rate increased to 15 percent from existing 12 percent.
INCOME TAX RATE IMPACT
1. (Individual Tax Payers)
Up to Rs 2,50,000 NIL
Rs 2,50,001 to Rs 5,00,000 10% Rs 3,000 (Savings)
Rs 5,00,001 to Rs 10,00,000 20% NIL
Rs 10,00,001 to Rs 1 crore 30% NIL
Above Rs 1 crore 30% 3% higher surcharge
2. (Senior Citizens 60 years but less than 80 years)
Up to Rs 3,00,000 NIL
Rs 3,00,001 to Rs 5,00,000 10% Rs 3,000(Savings)
Rs 5,00,001 to Rs 10,00,000 20% NIL
Rs 10,00,001 to Rs 1 crore 30% NIL
Above Rs 1 crore 30% 3% higher surcharge
3. (Senior Citizens 80 years and above)
Up to Rs 5,00,000 NIL Rs 3,000 (Savings)
Rs 5,00,001 to Rs 10,00,000 20% NIL
Rs 10,00,001 to Rs 1 crore 30% NIL
Above Rs 1 crore 30% 3% higher surcharge
Additional 10 percent tax has been proposed in case dividend income received from a domestic company exceeds Rs 10 lakh.
