Changes in Income Tax Relief for Indian Taxpayers

Income Tax Relief for Indian Taxpayer

The most attractive announcement made in the Union Budget 2017 is reducing the income tax rate from 10% to 5% for the Income tax slab of INR 2.5-5 lakhs. This has caught the importance as most of the common taxpayers in India falls under this category.

Changes in Income Tax Relief for Indian Taxpayers

Now, talking about other higher tax slabs, they have also got some relief as announced in budget 2017. Taxpayer falling into the income category, earning up to INR 50 lakhs will get a relief of INR 12,500 and taxpayer earning over INR 1 Cr will get an income tax relief up to INR 14,806 with 15% surcharge. The income tax rates announced in this budget are estimated to benefit 2 Crores of Indian Taxpayers. On the other hand, the income tax slab of INR 50 lakhs – 1Cr will have to pay a surcharge of 10% where the tax group earning over INR 1Cr will remain in the same surcharge of 15%.

Also, the tax rebate has been reduced to INR 2,500 from INR 5,000 for the taxpayers with an income up to INR 3.5 lakhs. In simple words, the taxpayers, with an income of INR 3 lakhs will have a tax liability for INR 50,000 at a rate of 5% which will be an amount of INR 2,500.  But due to the rebate announced for this tax group, they will have a zero tax liability after receiving the INR 2,500 rebate. So, the income tax group of INR 2.5-3 lakhs has not been affected in any way by this recent budget.

Indian Taxpayers

The people with incomes of  INR 3.5 lakhs will have a tax liability of INR 5,000 which will be reduced to INR 2,500 after the rebate mentioned under Section 87A. No rebate has been offered to income group above the limit of INR 3.5 lakhs. Also, people who have invested in PPF, insurance policies and mutual funds can avail deductions up to INR 1.5 lakhs as mentioned under Section 80C. So, on that term, income tax group up to INR 4.5 lakhs can be tax-free by investing into these schemes. For income up to INR 5 lakhs have been offered the reduced tax rate of 5%, that will anyway save a lot in comparison to last fiscal year.


  1. Interestingly enough, i saw this blog and though i read with much anxiety.This is the blog that i needed and i have been searching for such blog from a very long time now but today finally i found it and that to even in such an easy language which was really easy for me to understand and very easy to learn from it.
    Through this i came to know about Changes in Income Tax Relief for Indian Taxpayers.
    It genuinely helped me with the information i was seeking for.
    The overall look of your web site is magnificent, aswell as the content!
    Thank you for your great article .It is the clearest i have found and i am sure it is going to help me a lot .
    found it to be interesting one.great work done by those hands who work behind this

  2. Thanks this blog has really helped me alot. This really helps and tells a process that is required to fill up an Income tax return. This blog tell us step by step how we should fill taxes and yes it is also easy to understand. Each and every details have been mentioned in simple and clear language.
    i would prefer anyone to have a eye on it to clear all their doubts. The best thing about this blog is that we can get every information hear only. we shoud not go on different side to search about itr. Great work keep it up.It tell breifly and accurately about taxes. The blog is very detailed and the way it explains the things is very easy to understand and to retain it really helps a person on how to fill up the ITR and how to enquire about it. Great work from ALL INDIA ITR since it is a very well written and a very useful blog.


Please enter your comment!
Please enter your name here