Tax on Individuals

The Bill retains the rates of income tax at 10%, 20% and 30%. It widens the slabs:

♤ income up to Rs 2 lakh will be tax exempt;

♤ income between Rs 2 lakh and Rs 5 lakh will be taxed at 10%; and

♤ income between Rs 5 lakh and Rs 10 lakh will be taxed at 20% and income above Rs 10 lakh will be taxed at 30%.

Senior citizens will be exempt from tax for income up to Rs 2.5 lakh. Most existing exemptions and deductions for individuals have been retained. The Bill specifically taxes any income from a “controlled foreign company” set up by Indian residents in a foreign country with the purpose of paying lower taxes.