The Finance Minister presents the final Budget, after it is worked on by the Ministry of Finance. The Budget is presented to the Lok Sabha on the last working day of February. It has then to be discussed and passed by the house before coming into effect on April 1st.
The Union Budget not only talks about what has happened in the past year, but also what is likely to happen in the coming year. While many of the things discussed in the Budget affect us indirectly, one space that directly impacts us is Taxation! The Tax Slabs & Norms are often tweaked or changed completely in the Budget, which means that the amount of tax you pay could increase or decrease!
Current Slabs ( ` ) Proposed Slabs ( ` ) Basic rate of tax
Upto160,000 Upto180,000 Nil
160,001to500,000 180,001to500,000 10%
500,001to800,000 500,001to800,000 20%
Above800,001 Above800,001 30%
No change in tax Structure
Upto190,000 Upto190,000 Nil
190,001to500,000 190,001to500,000 10%
500,001to800,000 500,001to 800,000 20%
Above800,000 Above800,000 30%
Age for eligibility reduced from 65 years to 60 Years Upto 240,000 Upto 250,000 Nil 240,001to500,000 250,001to500,000 10% 500,001to800,000 500,001to800,000 20% Above800,001 Above 800,001 30% For Senior Citizen (80years & above) Hike in exemption limit to ` 5 lakh will result on big gains Upto 240,000 Upto 500,000 Nil 240,001to500,000 - 10% 500,001to800,000 500,001to800,000 20% Above 800,001 Above 800,001 30%