No change in tax slab for thoise who earn less than Rs 5 lakh per year. Tabling the first Budget of the Modi-led government after assuming office for a second term, the Union Finance Minister Nirmala Sitharaman said a lot of reforms have been initiated in GST. 'Those having annual income up to Rs 5 lakh are not required to pay any income tax. We are thankful to tax payers who play an important role in nation building.
Income tax increases by 3 per cent for those earning between Rs 2-5 cr and 7 per cent for those with income above Rs 5 cr', the Minister said. She fuerther announced to levy TDS of 2 per cent of cash withdrawal exceeding Rs 1 cr in a year from a bank account to discourage cash transactions for business deals.'All companies having annual turnover of 400 cr, will now be under the bracket of 25 per cent.
Earlier lower corporate tax rate of 25 per cent was applicable only to companies with annual turnover up to 250 crs. This will cover 99.3 per cent of all the companies. This include 99.3 per cent of all companies. 0.7 percent companies will remain outside of this rate', she said.