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 Jaitleys 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].


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.


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.


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 )


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)

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.


7. Simple ITR Form:

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


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.


9. Cash Donations:

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


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

2 responses to “Top 10 Union Budget 2017 Impact on Individuals”

    • To help individual taxpayers in lowering the tax burden, Section 87A was introduced. Previously a Resident individual, whose total income does not exceed Rs. 5 lakh is entitled to a deduction of Rs 5000 from the amount of income-tax after allowing the deduction. To know how much rebate you are entitled post budget, use our budget income tax calculator. https://tax2win.in/budget-2017-impact

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