The tax slabs for the individual salaries tax payer are proposed to be modified in the budget speech of the Finance Minister who is delivering the speech in the Lok Sabha at this point..

The finance minister has not left the corporate tax structure untouched. He proposes to reduce the surcharge on the income of companies from 10% to 7.5%. However, he has also proposed for the Minimum Alternate Tax to increase from 15% to 18%.

For delayed tax payments interest grows up from 12% to 18% which is very steep indeed but will not impact those who pay their taxes on time.

New Limits for individual taxation proposed by the finance minister

Slab (INR)	Rate (%)
Upto 1.6 lakh	0%
1.6 – 5 lakh	10%
5 –8 lakh	20%
8 lakhs	30%

 

Previous slabs for comparison purposes

Slab (INR)	(Rate %)
Upto 1.6 lakh	0
1.6 – 3 lakh	10%
3-5 lakh	20%
5 lakhs and above	30%

 

Audit requirements limits are also proposed to be changed.

 

 

Category	Current	Proposed
Business	40 lakhs	60 lakhs
Individual	10 lakhs	15 lakhs