Around 2.5 lakh income tax payers stand to benefit from the proposal to halve the tax rate among 3.7 crore individuals who filed income tax returns in 2015-16. Some operational changes aimed at improving the income tax structure were also announced. Late fee Taxpayers who are tardy in filing their returns will have to brace for a hefty fee. People in India tend not to file their tax returns - especially those who have an income of up to Rs 5 lakh. The fee will act as a goad to persuade more people to file their tax returns.

Source: The Telegraph February 01, 2017 22:23 UTC