Finance Minister, Mr. Arun Jaitley, did not propose any change in the income-tax slab rates. However, various changes have been proposed in the income-tax provisions which impact the taxable income of an individual. All relevant proposals made for an Individual are as under: (1) Rate of surcharge shall be increased to 15% from 12% if total income of an individual exceeds Rs. 1 crore. (2) An additional tax at the rate of 10% of gross amount of dividend shall be paid by a resident individual, HUF or a firm, if dividend received by them from a domestic company exceed Rs. 10 lakhs per annum. Dividend income is otherwise exempt under Section 10(34), however, such exemption is proposed to be withdrawn in case of rich investors receiving dividend exceeding Rs. 10 lakhs [Section 115BBDA]. (3) Relief under Section 87A is proposed to be raised from Rs. 2,000 to Rs. 5,000 in order to provide relief to small taxpayers. Relief under Section 87A is available to a res...
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