Budget 2017-18 may not have met the high expectations, especially in the backdrop of demonetisation, but it did bring some relief for everyone. The government has reduced the personal income tax rate for those in the tax slab of Rs 2.5 lakh to Rs 5 lakh to 5% from 10% earlier, which translates into a saving of Rs 12,500 (without including cess) for everyone.
For those earning up to Rs 5 lakh, the savings are a lot more. The reduction in the first tax slab along with a rebate of Rs 2,500 for income up to Rs 3.5 lakh means that if your annual income is Rs 3 lakh, you don’t pay any taxes.
Even those who earn up to Rs 4.5 lakh a year don’t pay taxes if you factor in the section 80C deduction of Rs 1.5 lakh and the rebate. But for the rich there is some pain in the form of a surcharge. This budget levied a surcharge of 10% for those with incomes of Rs 50 lakh-Rs 1 crore. Those above Rs 1 crore already pay a surcharge of 15%. This table tells you how much extra you pay or save. This is for individuals below 60 years of age and the calculation includes a cess of 3%.