Union Budget announced by the Finance Minister on February 1, 2017, proposed to reduce the tax rate for taxable income less than Rs 5 lakh from current 10 per cent to 5 per cent benefiting individuals (resident/non-resident) below the age of 60 years and individuals (resident/non-resident) above the age of 60 years and below the age of 80 years. Rebate, under section 87A of the Income-Tax Act 1961, is proposed to be reduced from Rs 5,000 to Rs 2,500. It has also been proposed to restrict such rebate to resident individuals whose total income does not exceed Rs 3.5 lakh (earlier Rs 5 lakh).