Budget 2017-18 presented by Finance Minister Arun Jaitley may have just brought a smile on the faces of individual income tax payers. The biggest relief for the Indian middle class came as the finance minister announced tax cuts.
Presenting the Budget, Jaitley said that income tax rate for individual assessees with annual income between Rs 2.5 lakh to 5 lakh has been reduced to 5 per cent from the current 10 per cent. He added that a surcharge of 10 per cent would be levied on individuals earning between Rs 50 lakh to Rs 1 crore on an annual basis.
Acknowledging the people's expectation for tax cut post demonetisation in November, the finance minister said, "Post demonetisation, there's a legitimate expectation for reduced tax burden."
Jaitley said that there would be zero liability for people with annual income of Rs 3 lakh or less while there will be a surcharge of 15 per cent for individuals with income above Rs 1 crore.