Finance bill 2017 has reduced the lowest slab rate to 5% from 10%. This is a welcome step. The assessee shall get maximum benefit of Rs. 12,500 across all levels of income. But next slab is 4 times of 5% which is 20%. This may encourage few assessee to under report their income so that they may fall in 5% bracket.
One more benefit is been given to resident individual who is earning income upto Rs. 3,50,000 to claim rebate u/s 87A of maximum Rs. 2,500. Effectively every salaried class or small business man whose total income is upto Rs. 3,00,000 need not pay any tax.
For Resident senior citizen aged atleast 60 years no tax upto a income of Rs. 3,00,000.
For Resident super senior citizen aged atleast 80 years no tax upto a income of Rs. 5,00,000
This Govt. looks honest and is determined to bring the old glory of India. It seems Modi ji will surely and we will all one day can say proudly “INDIA IS SHINING”