A huge number of tax payers in Goa fall in the yearly income bracket of Rs 2.5 lakhs to Rs 5 lakhs and they all stand to gain, thanks to the announcement of Union finance minister Arun Jaitley reducing the tax burden of middle and lower middle classes to 5% from 10% for individual assesses with yearly income between Rs 2.5 lakh and Rs 5 lakhs.
Due to this measure and rebate under section 87A, an individual won't have to pay any tax if his or her taxable income is upto Rs 3 lakh per annum. Jaitley even said that the tax liability for people with taxable income between Rs 3 lakhs and Rs 3.5 lakhs would be just Rs 2,500.
Even for people with taxable income between Rs 3.5 lakh and Rs 5 lakh, tax liability has been greatly reduced, as tax rate now would be just 5% from 10%.
The finance minister has made up for this fall in tax revenues by imposing a surcharge on upper middle classes. As per his announcement, there will be surcharge of 10% on tax payable for people with yearly taxable income between Rs 50 lakhs and Rs 1 crore.
Even before this budget, there was a surcharge of 15% on tax payable for people with yearly income of more than Rs 1 crore, which will continue.
