New Delhi: There has been no change in individual tax rates or slabs while corporate tax rate will be cut from 30% to 25% over the next four years. While delivering his first full Budget speech in Parliament on Saturday, Finance Minister Arun Jaitley said individual tax payer will benefit to the extent Rs 4,44,200 per year from several exemptions announced.
Jaitley wooed the tax paying public by providing a lot on incentives. Health Insurance Premium deduction has been increased from Rs 15,000 to Rs 25,000 and for senior citizens it will be now Rs 30,000. Transport allowance exemption has been hiked to Rs 1,600 from Rs 800 per month.
While Weath Tax has been abolished, additional 2% surcharge on people earning over Rs 1 crore to fetch Rs 9,000 crore per year. Jaitley also announced Rs 50,000 deduction for contribution to New Pension Scheme.
Service Tax rate has been hiked to 14% from 12.36%.
Income tax exemption impact:
Individual Tax Payers up to the age of 60 years
Up to Rs 2,50,000 - No tax
Rs 2,50,001 to Rs 5,00,000 - 10 per cent tax
Rs 5,00,001 to Rs 10,00,000 - 20 per cent tax
Above Rs 10,00,000 - 30 per cent tax
Senior Citizens above 60 years
Up to Rs 3,00,000 - No tax
Rs 3,00,001 to Rs 5,00,000 - 10 per cent tax
Rs 5,00,001 to Rs 10,00,000 - 20 per cent tax
Above Rs 10,00,000 - 30 per cent tax
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