Announcing the new set of tax reforms, Union Finance Minister Nirmala Sitharaman, on Friday, has said that while the income tax slabs will remain unchanged, a super-rich tax i.e a surcharge will be levied on individuals having a taxable income of 2-5 crore and above 5 crore, of 3 % and 7 % respectively.
"I propose to enhance surcharge on individuals having taxable income from 2 crore to 5 crore and 5 crore and above so that effective tax rates for these
two categories will increase by around 3 % and 7 % respectively," she said.
Talking about the aim of the new tax proposals, Sitharaman said that while the proposals are aimed at stimulating growth in multiple sectors, it mainly focused on simplifying the tax administration.
"My tax proposals will aim to stimulate growth, incentivise affordable housing, and encourage start-ups by releasing entrepreneurial spirits. It will also be geared towards promoting the digital economy. I aim to simplify tax administration and bring greater transparency," she added.
Here are the unchanged tax slabs for the three categories of taxable citizens:
The income tax slab is applicable to: