Highlights

  • Personal Income Tax rate for individual assesses with annual taxable income between Rs. 2.5 lakh to Rs. 5 lakh reduced from 10% to 5%.
  • A surcharge of 10% levied on individuals whose annual taxable income is between Rs. 50 lakh and Rs. 1 crore; the existing surcharge of 15% on tax payable on people whose annual earning is more than Rs. 1 crore would continue.
  • Corporate Income Tax rate has been reduced from 30 % to 25 % for Micro, Small and Medium Enterprises (MSMEs) with annual turnover of up to Rs. 50 crore.
  • Time period for Long Term Capital Gains tax for property reduced to two years from earlier three years; the base year for indexation is proposed to be shifted from 1.4.1981 to 1.4.2001 for all classes of assets including immovable property.
  • A simple one-page form to be filed as Income Tax Return for the category of individuals having taxable income up to Rs. 5 lakh other than business income.
  • Basic customs duty on LNG reduced from 5 % to 2.5%.