How Will Budget 2017 Affect Personal Finances?

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Budget 2017 was announced yesterday and it has provided certain provisions that will have a direct impact on salaried individuals. These provisions range from tax savings to increase in the prices of certain goods and reduction in the price of certain services. Here are the changes that affect personal finance directly.

  • Those paying taxes for the first time will be exempt from scrutiny.
  • Those earning up to Rs.3 lakhs will not have to pay income tax.
  • Those earning between Rs.2.5 lakhs and Rs.3.5 lakhs may get a rebate on income tax of only Rs.2,500 as opposed to the current rebate of Rs.5,000 under section 87A.
  • Those earning up to Rs.5 lakhs will pay 5% income tax as opposed to the earlier tax of 10%.
  • As a result of the reduction in taxes for incomes up to Rs.5 lakhs, everyone will save up to an additional Rs.12,500 in income tax.
  • Those with an income of Rs.50 lakhs to Rs.1 crore will pay a surcharge of 10% and a tax of 30%.
  • Those with an income above Rs.1 crore will pay a surcharge of 15% and will be taxed at 30%.
  • Transactions being carried out in cash will have a limit of Rs.3 lakhs.
  • Service charges on train books have been removed so the tickets will be Rs.23 to Rs.138 cheaper on IRCTC, depending on which class tickets you book.
  • Cigarettes, chewing tobacco, pan, pure water and gold and silver coins will be more expensive.
  • The prices of electronics may also go up since there will be a tax on the PCBs used in various devices, including mobile phones.

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