Budget 2017: Income Tax Rate Reduced To 5% For Income Between Rs 2.5L To Rs 5, Cash Transactions Above 3L Banned

Budget 2017: Income Tax Rate Reduced To 5% For Income Between Rs 2.5L To Rs 5, Cash Transactions Above 3L Banned

Finance Minister Arun Jaitley has announced that the personal Income Tax Rate will be reduced from 10% to 5% for those earning between Rs 2.5 to Rs 5.

He also announced 10% surcharge on individual income above Rs 50 lakh and upto Rs 1 Cr. 15% surcharge on incomes above Rs 1 crore will continue

Income tax for smaller companies with turnover up to Rs 50 cr reduced to 25%

Some Important Announcements in the Budget Speech:



  • All cash transactions above Rs 3 lakh banned from April 1

  • Zero tax libality for people earning upto 3L per annum

  • Maximum amount of cash donation a political party can receive will be Rs 2000 from any one source.

  • Political parties will be entitled to receive donations by cheque or in the digital mode from their donors.

  • Basic customs duty on LNG reduced from 5% to 2.5% in 2017-18

  • Cash limit of charitable donation proposed to be reduced to Rs. 5000/- from existing 10000

  • Maximum amount of cash donation for political parties cut to Rs 2,000 cr

  • Government will amend the Multi-state Cooperative Act to protect the poor and gullible investors.

  • Government will amend Negotiable Instruments Act to protect payees of dis-honoured cheques

  • Service charge on e-tickets booked through IRCTC to be withdrawn


Read Key Highlights Of Budget 2017 here

Read the Full Text Of Budget Speech here

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