Simple One Page Income Tax Return to be Introduced – Finance Minister reduces the tax rate from 10 to 5 per cent for individual income between Rs 2.5 to Rs 5 lakh.
Ministry
of Finance Press Release on Simple One Page Income Tax Return
The Union Finance Minister Shri Arun Jaitley reduced the
rate of taxation from existing 10 per cent to 5 per cent for individual
assesses between income of Rs 2.5 lakhs to Rs 5 lakhs. This would reduce the
tax liability of all persons below Rs 5 lakh income either to zero (with
rebate) or 50 per cent of their existing liability.
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While presenting the General Budget 2017-18 in the
Parliament today, the Union Finance Minister Shri Jaitley said that the present
burden of taxation is mainly on honest tax payers and salaried employees who
are showing their income correctly. Therefore, post-demonetisation, there is a
legitimate expectation of this class of people to reduce their burden of
taxation. The Finance Minister further said that if a nominal rate of taxation
is kept for lower slab, many more people will prefer to come within the tax
net. The Finance Minister made an appeal to all the citizens of India to contribute to Nation Building
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The Union Finance Minister Shri Jaitley said that the
Government is trying to bring within tax-net more people who are evading taxes.
So, in order to expand tax net, it is decided to have a simple one-page form to
be filed as Income Tax Return for the category of individuals having taxable
income up to Rs 5 lakhs other than business income. Also, a person of this
category who files income tax return for the first time would not be subjected
to any scrutiny in the first year unless there is specific information
available with the Department regarding his high value transaction.
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In his Budget Speech, the Finance Minister
further said that in order not to have duplication of benefit, the existing
benefit of rebate available to the same group of beneficiaries is being reduced
to Rs 2500, available only to assessees upto income of Rs 3.5 lakhs. The
combined effect of both these measures will mean that there would be zero tax
liability for people getting income upto Rs 3 lakhs per annum. and the tax
liability will only be Rs 2,500 for people with income between Rs 3 and Rs 3.5
lakhs. While the taxation liability of people with income upto Rs 5 lakhs is
being reduced to half, all the other categories of tax payers in the subsequent
slabs will also get a uniform benefit of Rs 12,500 per person. The total amount
of tax foregone on account of this measure is Rs 15,500 crore.
In order to make good some of this revenue
loss on account of this relief, a surcharge of 10 per cent of tax payable on
categories of individuals whose annual taxable income is between Rs 50 lakhs
and Rs 1 crore has been proposed. This is likely to give additional revenue of
Rs 2,700 crore.
The Finance Minister said that the direct
tax proposals for exemptions, etc. would result in revenue loss of Rs 22,700
crore but after counting for revenue gain of Rs 2,700 crore for additional
resource mobilisation proposal, the net revenue loss in direct tax would come
to Rs 20,000 crore.
Source from Gconnect.in
