Budget 2017: Income tax halved for earnings between Rs 2.5L to Rs 5L

Finance minister Arun Jaitley gave the salaried class a relief in the 2017 budget, bringing down personal income tax limits for the lowest slab, a move aimed at softening the demonetisation blow. For those with income of Rs 2.5 lakh to Rs 5 lakh, a tax rate of 5% will be applicable against the current 10%. Besides, a surcharge of 10% will be applicable for those earning Rs 50 lakh to Rs 1 crore. The surcharge of 15% will continue for all earning Rs 1 crore and above.