February 01, 2017 ,
NEW DELHI: Stating that India is " largely a non-tax compliant society+ ," finance minister Arun Jaitley today sought to remedy that by reducing the base tax rate to 5 per cent from the earlier 10 per cent on income of between Rs 2.5 lakh to Rs 5 lakh.


The minister imposed a surcharge of 10 per cent for those whose annual income is Rs 50 lakh to Rs 1 crore. The 15% surcharge on incomes above Rs 1 crore will continue.

The minister also said the government plans to extend the basket of financial instruments to which the capital gains can be invested without the payment of tax.

Jaitley reduced the holding period for long-term capital gains tax on property+ to 2 years from 3 years.

There is also a proposal to allow a carry forward of Minimum Alternative Tax for a period of 15 years up from the current 10 years now.

On the corporate side, income tax for small companies+ with an annual turnover of Rs 50 crore, has been reduced to 25 per cent, from the earlier 30 per cent.

Source: timesofindia.indiatimes.com