Top 10 Union Budget 2017 Impact on Individuals

The Union Budget 2017 was a budget focused on providing the relief to the middle-class individual taxpayers. Let’s see what �Arun Jaitley�s Union Budget 2017 had for the individuals.

1. Zero Tax Liability:

Arun Jaitley announced zero tax liability on the individuals earning an income up to Rs.3 Lakhs [after taking advantage of rebate u/s 87A].

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2. Reduction in slab Rate:

The existing slab rate of 10% reduced to 5% for the individuals earning income from Rs.2.5 Lakhs- Rs.5 Lakhs.

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3. Change in The Rebate u/s 87A:

The existing rebate under section 87A is reduced to Rs.2500 for individuals earning income up to Rs.3.5 Lakhs.

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4. No Tax Up to income of Rs 4.5 Lakhs:

Arun Jaitley in his speech mentioned no tax liability for people earning income up to 4.5 Lakhs

(Exemption amount = 2.5 lakh �+ �Deductions u/s 80C = �1.5 lakh �+ �Rebate u/s 87A on the Tax Liability =Rs.2500 )

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5. Capital Gains Amendments:

• For calculation of Long Term capital Gains-

The holding period for land & building will be reduced to 2 yrs from 3 yrs.

• Base year indexation shifted from 1.4.1981 to 1.4.2001 (From Cost Inflation Index 100 to 426)

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6. Surcharge Introduced:

Earlier only 15% surcharge was applicable on income exceeding Rs. 1cr. Now 10 % surcharge is also applicable on income above Rs 50 lakh and up to Rs 1 cr.

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7. Simple ITR Form:

The introduction of simple one -page return form for individuals having income up to Rs.5 Lakhs.

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8. No TDS for Insurance Commission Agents:

Exemption from the TDS @5% to the insurance agents submitting a declaration of earning income below taxable limit.

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9. Cash Donations:

The limit of donations in cash to charitable institutions reduced from Rs 10000 to Rs.2000.

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10. No cash Transactions:

Transactions exceeding Rs 3 lakh will not be permitted in cash.
All the above changes shall be applicable from F.Y.2017-18.
Source: Live Budget Updates