What's there in the budget for Small Tax Payers- Business News

What's there in the budget for Small Tax Payers

  • February 29, 2016  
  • |  
  • UPDATED   19:07 IST

The finance minister has announced no change in the income tax slabs in this FY16-17 budget. But there is good news and a kind of relief for the small tax payers.

Yes, in order to lessen the burden on individuals with income not exceeding 5 lakhs, finance minister propose the ceiling of tax rebate under section 87A from Rs. 2000 to Rs. 5,000.

In India, there are more than  2 crores  tax payers in this category who will get a relief of Rs. 3,000 in their tax liability.

"In the last Budget, this marginal relief was announced and the amount was restricted to Rs.2,000 per individual.  Now this rebate has been enhanced to Rs.5,000/-  This rebate is available to all taxpayers whether salaried or business or self-employed." says, Anil Chopra, Group CEO & Director, Bajaj Capital Ltd.

This step is something which will definitely give relief to small tax payers to some extent. Finance minister has also aimed at taxing the super rich by increasing the surcharge on income tax levied on individuals earning income of Rs 1 crore or more from 12 per cent at present to 15 per cent. 

"Super rich taxpayers will have to now pay a higher tax than before.  These are small steps in the direction of reducing inequality in incomes."says Anil Chopra.