How to use rates to save money in the Rajasthan Budget
The Budget 2016 had a number of tax breaks to help ease the burden of high income earners and ease the squeeze on the budget.
Among these were a doubling of the standard deduction and the elimination of the deduction for property.
The rate on property in Rajasthani has been increased from Rs 5,000 to Rs 10,000 per annum, while the standard rate has been reduced from 6 per cent to 5 per cent.
The reduction in the standard tax deduction for the top income earners has been a major feature of the Budget.
The standard deduction has been removed for the next three years from the tax return, which will result in an income tax burden of Rs 20,000-30,000 crore a year.
The tax will also fall on the top-income bracket from 3 per cent on the first year to 2 per cent, which is the same as the previous regime.
The rates of tax paid by the middle class have also been reduced.
The rate of tax for the average household will rise from 18 per cent in 2019-20 to 25 per cent next year.
The introduction of GST and demonetisation will further reduce the burden on the poorest of the poor, who are the main beneficiaries of the tax cuts.
This will also help ease pressure on the state finances, which are expected to grow at a rapid rate.
The Rajassthani Budget is likely to come into effect on March 31, 2017.