Income Tax Calculator: Here's What You Need to Pay

Representative image (Photo Credit: PTI)

New Delhi: Finance Minister Arun Jaitley has put more money in the hands of the lower rung of tax payers partly funded by pinching higher earners in his 2017/18 Budget.

As a possible reward for their forebearance of demonetisation, Jaitley halved the tax rate for those with incomes up to Rs 5 lakh a year – nearly 68% of individual tax payers.

For example, those earning 3.5 lakh a year were earlier paying Rs 5,150 as tax but now they will only have to pay Rs 2,575.

Those who were earning Rs 7.5 lakh a year were paying taxes to the tune of Rs 77,250 but now that liability is lighter by Rs 12,875 and they will now just have to pay Rs 64,375.

Going further up the income bracket, say those earning 25 lakh a year, will have their tax burden lighter by Rs 12,875 and instead of paying Rs 5,92,250 they will now be paying Rs 5,79,375.

Those with incomes between Rs 50 lakh and Rs 1 crore, however, saw a 10% surcharge being imposed on their tax rate, while those with incomes above Rs 1 crore will see no change to their tax liability.